Category: Market Summary

FTSE 100 edges lower as BT and Verizon unveil a global venture, Smiths News secures a major contract and Brent crude remains in focus.

Market Overview

UK markets opened little changed, with the FTSE 100 easing marginally after the previous session, while European trading was mixed. The FTSE 100 slipped 0.00 per cent to 10,507.83, the Euronext 100 gained 0.06 per cent to 1,898.60 and Germany’s DAX advanced 0.17 per cent to 24,724.34. Overnight, the Nasdaq closed lower at 25,297.62 and the S&P 500 finished slightly down at 7,354.02. Investors continued to monitor developments in the Middle East alongside corporate news including BT’s strategic partnership with Verizon.

Commodity markets reflected ongoing geopolitical caution. Brent crude edged higher as traders assessed renewed US-Iran tensions and developments involving Qatar, while copper softened and gold was little changed. Against sterling, the US dollar strengthened slightly, while the euro and Swiss franc were broadly steady and the Japanese yen weakened. Bitcoin traded slightly higher versus the pound.

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Market Numbers

FTSE 100: Down, 10,507.83
Euronext 100: Up (+0.06%), 1,898.60
DAX: Up (+0.17%), 24,724.34
NASDAQ: Down, 25,297.62
S&P 500: Down, 7,354.02

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In the Headlines

Global telecoms venture – BT Group (LSE:BT.A)
BT and Verizon will combine their international enterprise businesses into a 50:50 joint venture with around $4 billion in annual revenue. The deal is intended to strengthen global connectivity services for multinational customers while allowing both companies to focus more closely on their domestic markets.

Distribution contract – Smiths News (LSE:SNWS)
Smiths News has secured a long-term agreement to continue distributing Associated Newspapers titles. The contract provides greater revenue visibility and reinforces the company’s position within the UK newspaper distribution market.

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Currencies (vs GBP)

USD: Down (-0.01%), $1.3197
CHF: Down (-0.01%), Fr.1.0690
EUR: Up (+0.00%), €1.1591
JPY: Up (+0.01%), ¥213.511
AUD: Up (+0.01%), $1.9136
Bitcoin (BTC/GBP): Up (-0.33%), £45,361.59

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Commodities

Copper: Down
Gold: Down
Brent Crude: Down
Natural Gas: Down

European equity markets were broadly subdued on Monday as investors assessed the stability of the temporary ceasefire between the United States and Iran, while firmer oil prices renewed concerns about inflation.

The pan-European STOXX 600 slipped 0.03% to 635.66 points after a volatile trading week that produced only limited gains. Germany’s DAX, France’s CAC 40 and the UK’s FTSE 100 were little changed, while Italy’s FTSE MIB eased 0.2%.

Investor sentiment remained cautious following renewed military action between Washington and Tehran over the weekend after an attack on a commercial vessel near the Strait of Hormuz. Although both sides later agreed to suspend further retaliatory strikes ahead of technical talks scheduled for Tuesday in Doha, uncertainty surrounding the situation discouraged investors from taking significant new positions.

Oil prices moved modestly higher as traders continued to monitor the potential impact of disruptions to shipping through the strategically important Strait of Hormuz. The renewed focus on geopolitical tensions and energy-driven inflation followed last week’s technology-led market weakness, when concerns over elevated valuations weighed on artificial intelligence-related stocks across global markets.

Attention is now shifting towards a busy week of economic events. Investors are awaiting the latest U.S. non-farm payrolls report, which is expected to play a key role in shaping expectations for Federal Reserve policy and whether markets continue to anticipate two additional 25-basis-point interest rate increases before year-end.

In Europe, June readings for consumer confidence and business sentiment are also due later in the day. Market participants will closely follow comments from European Central Bank President Christine Lagarde at the opening of the ECB’s Sintra Forum, looking for further guidance on the outlook for Eurozone interest rates, with markets currently expecting at least one additional ECB rate increase this year.

Among individual stocks, Nagarro (TG:NA9) surged 90% after receiving takeover approaches, while Prosus (EU:PRX) gained 2% following the release of its full-year financial results.

UK equities opened lower on Monday despite signs of easing tensions between the United States and Iran, while investors also digested fresh comments from the Bank of England and developments in UK politics. The FTSE 100 fell 0.20%, while Germany’s DAX rose 0.18% and France’s CAC 40 slipped 0.16%. Sterling strengthened 0.13% against the US dollar to 1.3220 as of 03:23 ET (07:23 GMT).

J.P. Morgan lifted its year-end target for the FTSE 100 to 11,000 from 10,300, implying around 5% upside from the index’s current level of 10,508.

Bank of England Chief Economist Huw Pill warned that policymakers must remain focused on bringing inflation back to target, following May’s Consumer Prices Index reading of 2.8%.

“I think it should be seen as problematic, because our mandate is very clear; inflation at 2% at all times,” Pill said, adding “I do fear a little bit that, because we saw inflation go to 11%, policy discussion becomes, ’oh inflation at 3% is not so bad’.”

Pill, who voted for a rate increase at the Bank’s most recent policy meeting, also suggested that monetary policy “hasn’t been restrictive enough over the last few years.”

Meanwhile, Labour leadership frontrunner Andy Burnham is expected to outline plans in Manchester for a wide-ranging devolution agenda centred on reindustrialisation, infrastructure investment, housing and greater decision-making powers for local authorities. The proposals are also expected to include reforms to public procurement aimed at supporting UK employment and measures to reduce youth unemployment.

Geopolitical tensions remained in focus after a US official said Washington and Tehran had agreed to “stand down for now” following renewed exchanges around the Strait of Hormuz over the weekend.

“Both sides will stand down for now and vessels can move freely,” the official said, adding that technical talks on the memorandum of understanding remain “on track.”

The announcement followed renewed military action after US Central Command carried out strikes against Iranian military targets, accusing Tehran of failing to honour the ceasefire following an attack on a tanker near the Omani coast. Iran responded with strikes against US military bases in Kuwait and Bahrain, claiming eight facilities had been targeted and warning that any further breach of the ceasefire “will lead to a complete halt of ongoing processes.”

US President Donald Trump also warned on Truth Social that the United States would “complete the job” if Iran failed to comply, adding that “the Islamic Republic of Iran will no longer exist” should hostilities continue.

Despite the temporary stand-down, uncertainty over shipping through the Strait of Hormuz remains unresolved. Iranian Foreign Minister Abbas Araghchi warned that attempts to bypass Iran’s preferred shipping route would “increase tensions”, while the Islamic Revolutionary Guard Corps said it would continue to oversee traffic through the waterway. Multiple transit routes are now being managed by different authorities, adding to uncertainty for global shipping.

Oil prices edged higher as traders balanced the easing of immediate military tensions against continuing risks to energy supplies. Brent crude rose 0.73%, while WTI gained 0.98%. Gold prices weakened as demand for traditional safe-haven assets eased, with gold futures falling 0.53% to US$4,074.47 per ounce and spot gold declining 0.71% to US$4,060.21.

UK Corporate Round-Up

BT (LSE:BT.A) agreed to combine its international enterprise operations with Verizon (NYSE:VZ) in a 50:50 joint venture expected to generate around US$4 billion in annual revenue. Under the agreement, Verizon will make a US$625 million equalisation payment to BT, while the UK telecoms group also updated its earnings and revenue guidance to reflect the planned separation of its international operations.

Haleon (LSE:HLN) has reportedly submitted a bid for US supplements manufacturer Thorne, according to Reuters. The move would expand Haleon’s presence in the approximately US$70 billion US dietary supplements market. Thorne, which was acquired by L Catterton in 2023 for US$680 million, is understood to have attracted interest from several strategic buyers.

AstraZeneca (LSE:AZN) and its partner Daiichi Sankyo (TG:D4S) received a positive recommendation for European Union approval of Datroway as a first-line treatment for triple-negative breast cancer. The recommendation follows Phase III trial data showing the therapy extended median overall survival by five months compared with chemotherapy.

U.S. stock futures moved higher on Wednesday as markets attempted to recover from a sharp technology-led sell-off, while investors looked ahead to key earnings results and developments across the artificial intelligence sector for signs of continued momentum.

At the same time, lower oil prices and easing geopolitical tensions continued to provide support for broader market sentiment.

Wall Street Futures Regain Ground

After a difficult session for technology and semiconductor stocks, futures pointed to a more positive start on Wall Street.

By 08:22 GMT, Nasdaq futures had risen 0.5%, while S&P 500 futures gained 0.2%. Dow Jones futures, however, slipped 0.16%.

Investors were encouraged by stronger-than-expected business activity figures and a continued retreat in crude oil prices as concerns over disruptions linked to tensions between the United States and Iran eased.

Attention is now focused on Micron Technology (NASDAQ:MU), whose quarterly earnings are expected to provide insight into demand for AI-related hardware and infrastructure.

As one of the world’s leading memory-chip manufacturers, Micron is viewed as an important gauge of spending trends across data centres and advanced computing platforms.

Nvidia Hardware Commands Premium Prices in China

Demand for Nvidia’s (NASDAQ:NVDA) latest AI systems remains exceptionally strong despite ongoing U.S. export restrictions.

According to the Financial Times, Nvidia’s DGX B300 servers are being sold through unofficial channels in China for more than 8 million yuan ($1.1 million), roughly double the price seen six months ago.

The trend highlights the continued appetite for advanced AI computing power in China and reinforces Nvidia’s dominant role in the sector despite geopolitical restrictions.

Meta Faces Increased Government Oversight

Meta Platforms (NASDAQ:META) has reportedly been asked by the Trump administration to voluntarily submit its artificial intelligence models for federal review, according to the New York Times.

The report notes that Meta is currently the only major U.S. AI company not participating in the government’s evaluation framework.

The request follows a broader push by Washington to increase oversight of advanced AI technologies, particularly those with potential national security implications.

For investors, the development underscores the growing importance of regulation as a factor shaping the future of the AI industry.

Honeywell Aerospace Draws Attention Ahead of Index Inclusion

Honeywell Aerospace is set to join both the S&P 100 and S&P 500 following its separation from Honeywell International (NASDAQ:HON).

The company will replace Honeywell in the S&P 100 and take the place of Conagra Brands (NYSE:CAG) in the S&P 500 when the changes take effect on 29 June.

The prospect of index-related buying helped lift when-issued shares by more than 9% in after-hours trading.

Alphabet Added to the Dow

Alphabet (NASDAQ:GOOG) will become a member of the Dow Jones Industrial Average later this month, replacing Verizon (NYSE:VZ).

The move reflects Alphabet’s growing significance within the U.S. economy and the increasing role of artificial intelligence in shaping corporate growth and investment trends.

While the Dow comprises only 30 stocks, inclusion often boosts a company’s profile and can generate additional demand from benchmark-tracking investment funds.

European equity markets traded cautiously on Wednesday, with investors reluctant to take on additional risk following a sharp global decline in technology shares and continued concerns that interest rates could remain elevated for longer.

The pan-European STOXX 600 was broadly unchanged at the open. Germany’s DAX slipped 0.6%, while France’s CAC 40 edged 0.1% higher. Italy’s FTSE MIB and the UK’s FTSE 100 both fell 0.2%.

The subdued performance followed Tuesday’s technology-led sell-off, which pushed the STOXX 600 to its lowest level in more than a week. Market participants are increasingly reassessing whether current valuations and the scale of artificial intelligence-related investment can be justified by future earnings growth.

“FOMO was replaced with a fear of being burnt if the now expected chunky earnings numbers don’t continue to surge,” said Danni Hewson, head of financial analysis at AJ Bell.

She added: “Post-IPO stocks often enter a period of volatility as the market gets to grips with the new entrant, some investors rush to cash out, and others assess at what price they are willing to jump in.”

According to CME FedWatch data, bond markets are currently pricing in around 50 basis points of additional Federal Reserve tightening by the end of the year, with investors assigning nearly a 40% probability to a rate increase as soon as July.

For European investors, the prospect of tighter monetary conditions presents a difficult backdrop. Economic indicators across the Eurozone continue to point towards slower growth, while inflation remains elevated enough to limit the European Central Bank’s flexibility on interest rates.

In the UK, investors are also contending with political uncertainty following the resignation of Prime Minister Keir Starmer, adding another layer of complexity to an already challenging environment marked by weak growth and restrictive monetary policy.

Movers in Focus

SEGRO rallies after rejecting takeover proposal

SEGRO (LSE:SGRO) surged nearly 20% after turning down a takeover approach from Prologis (NYSE:PLD) valued at approximately $16 billion.

Saipem advances on merger progress

Saipem (BIT:SPM) gained 4% after receiving approval from Brazil’s competition authority for its planned merger with Subsea7 (TG:SOC).

Rheinmetall falls on contract concerns

Rheinmetall (TG:RHM) dropped 15% following reports that the German government may cancel a significant defence contract and instead award the work to TKMS.

FTSE 100 steadies as Berkeley cuts growth targets and Segro rejects a takeover bid. Brent crude weakens while gold advances.

Market Overview

UK markets were broadly steady at the open, with the FTSE 100 edging higher to 10,429.02. Across Europe, sentiment was weaker following a global technology sell-off and renewed concerns over the interest rate outlook. The Euronext 100 slipped 0.01 per cent to 1,900.85, while Germany’s DAX fell 0.59 per cent to 24,790.70. In the United States, the Nasdaq closed lower at 25,587.04 and the S&P 500 finished at 7,365.46 as investors reacted to the technology-led retreat and Federal Reserve uncertainty.

Commodity markets reflected easing geopolitical concerns after expectations of smoother crude flows through the Strait of Hormuz helped push oil prices lower. Copper and gold moved higher, while natural gas also advanced. Against sterling, the US dollar, euro and Swiss franc strengthened, while the Australian dollar and Japanese yen weakened. Bitcoin was unchanged against the pound.

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Market Numbers

FTSE 100: Up (+0.00%), 10,429.02

Euronext 100: Down (-0.01%), 1,900.85

DAX: Down (-0.59%), 24,790.70

NASDAQ: Down, 25,587.04

S&P 500: Down, 7,365.46

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In the Headlines

Profit Outlook Reset – Berkeley Group (LSE:BKG)

Berkeley reported annual profit below market expectations and revised its medium-term growth targets. The update highlights ongoing challenges in the UK housing market and could influence sentiment towards the wider housebuilding sector.

Takeover Rebuff – Segro (LSE:SGRO)

Segro rejected a £12.6 billion approach from a US rival, underscoring continued overseas interest in UK-listed assets. The move reinforces confidence in the company’s long-term strategy and valuation outlook.

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Currencies (vs GBP)

USD: Up (+0.00%), $1.32

CHF: Up (+0.03%), Fr.1.0689

EUR: Up (+0.01%), €1.16

JPY: Down (-0.01%), ¥213.2955

AUD: Down (-0.00%), $1.9089

Bitcoin (BTC/GBP): Unchanged £47,473.62

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Commodities

Copper: Up

Gold: Up

Brent Crude: Down

Natural Gas: Up

UK equities traded in a narrow and volatile range on Wednesday as investors balanced improving conditions in the Middle East against a broad global sell-off in technology and semiconductor stocks, while also monitoring the political transition following Keir Starmer’s resignation.

By 07:25 GMT, the FTSE 100 was up 0.09%, having moved between modest gains and losses during the session. Elsewhere in Europe, Germany’s DAX fell 0.65%, while France’s CAC 40 added 0.20%. Sterling weakened 0.05% against the US dollar to $1.3188.

Political developments remained in focus in the UK. Starmer has continued discussions with expected successor Andy Burnham as part of a planned leadership handover and is due to meet European leaders in Berlin later in the day to discuss Ukraine, NATO defence spending and developments in Iran ahead of next month’s NATO summit.

Meanwhile, geopolitical tensions appeared to ease further as shipping activity through the Strait of Hormuz gradually returned towards normal levels. Tanker movements increased as concerns over disruption from the Iran-Israel conflict moderated, helping reduce pressure on energy markets.

The improvement followed comments from US officials rejecting suggestions that Iran could impose fees on vessels using the waterway. Diplomatic efforts continued throughout the region, although conflicting statements from Washington and Tehran highlighted the fragile nature of the current situation.

Energy markets reflected the calmer backdrop. Brent crude declined 1.22% to $75.86 per barrel, while West Texas Intermediate crude fell 1.35% to $72.22. Precious metals also weakened, with gold futures down 1.14% at $4,102 and spot gold falling 0.61% to $4,084 per ounce.

Technology stocks remained under pressure globally as investors reassessed valuations across the sector, contributing to a more cautious tone in equity markets despite the reduction in geopolitical risk.

UK Corporate Highlights

Berkeley misses profit expectations

Berkeley Group (LSE:BKG) reported annual pre-tax profit below market forecasts as higher construction costs, slower development activity and cautious buyer demand weighed on profitability.

SEGRO rejects Prologis approach

SEGRO (LSE:SGRO) confirmed it had rejected an all-share takeover proposal from Prologis (NYSE:PLD) that valued the logistics property group at approximately £12.6 billion.

B&M appoints new finance chief

B&M (LSE:BME) named Asda executive Atheeq Akbar as its incoming Chief Financial Officer. He is expected to join the discount retailer in February 2027 as the company continues efforts to strengthen its UK operations.

Tech Sector Weighs on Wall Street Outlook

Wall Street is headed for a weaker start on Tuesday as investors continue trimming exposure to technology shares amid concerns that interest rates could stay higher for longer and that the massive capital required to support the artificial intelligence boom may become increasingly difficult to justify.

Nasdaq futures are leading losses following another sharp decline in SpaceX (NASDAQ:SPCX), while falling oil prices are also drawing attention as progress in U.S.-Iran negotiations eases fears over disruptions to global energy supplies.

At the same time, fresh deal activity in artificial intelligence and new government support for quantum computing highlight the intensifying race to secure leadership in next-generation technologies.

Nasdaq Futures Lead Market Lower

U.S. equity futures moved lower ahead of the opening bell, with technology stocks once again at the centre of the sell-off.

As of 4:33 a.m. ET, Nasdaq 100 futures were down 2.8%, while S&P 500 futures had fallen 1.45%. Dow Jones futures declined a more modest 0.7%.

The weakness reflects growing expectations that U.S. interest rates may remain elevated for longer than previously anticipated. Investors are also increasingly questioning whether the current pace of AI-related spending can be maintained indefinitely.

Having driven much of the market’s gains over the past year, technology and semiconductor stocks are particularly vulnerable to profit-taking and valuation reassessments.

SpaceX Pullback Continues

SpaceX (NASDAQ:SPCX) extended its decline after suffering a steep sell-off in the previous session.

The stock dropped 16.4% on Monday and fell another 2.9% in premarket trading.

The move followed a more cautious assessment from KeyBanc, which argued that the company’s valuation had become increasingly demanding following its powerful rally after going public.

Shares closed Monday at $154.59, only modestly above their IPO opening level of $150 and well below their recent peak above $225.

The decline erased roughly $400 billion in market value and has reignited debate over whether the company’s long-term growth prospects are sufficient to support its lofty valuation.

SpaceX also announced a senior notes offering and disclosed that it held more than $100 billion in cash and cash equivalents as of June 19.

Qualcomm Expands Its AI Ambitions

Qualcomm (NASDAQ:QCOM) is reportedly in advanced discussions to acquire AI chip startup Modular in a deal that could value the company at approximately $4 billion, according to Bloomberg.

The reported valuation is more than double the level achieved during Modular’s last funding round less than a year ago, underscoring the fierce competition for artificial intelligence assets.

Qualcomm has been expanding beyond its traditional smartphone business by targeting opportunities in data centres, AI and autonomous vehicles.

The company is also said to be exploring a separate acquisition involving AI startup Tenstorrent.

If completed, the transaction would further demonstrate how established technology firms are racing to strengthen their positions across the AI ecosystem.

Oil Prices Continue to Decline

Crude prices extended their losses after posting significant declines in the previous session.

Investors increasingly believe that progress in negotiations between Washington and Tehran could pave the way for additional Iranian oil supplies to reach global markets.

Sentiment improved after the United States issued a 60-day licence permitting the sale and import of Iranian crude and petroleum products as diplomatic discussions continue.

The move follows reports of progress toward a broader agreement and an extension of the current ceasefire arrangement.

Lower energy prices could help ease inflationary pressures, although prolonged weakness in crude markets may create challenges for energy producers.

Quantum Computing Gets a Boost

Quantum-computing stocks advanced after President Donald Trump signed a series of executive orders designed to accelerate the development of the technology in the United States.

The measures aim to deploy a research-capable quantum computer by 2028 and speed up the adoption of quantum-resistant cybersecurity systems across federal agencies.

Investors responded positively, lifting shares of companies including Infleqtion (NYSE:INFQ), Rigetti Computing (NASDAQ:RGTI), D-Wave Quantum (NYSE:QBTS) and IonQ (NYSE:IONQ).

IBM also moved higher after Trump praised Chief Executive Officer Arvind Krishna.

The initiatives signal growing recognition in Washington that quantum computing could become a strategically important technology over the coming decade.

Investors Look Beyond the AI Boom

While artificial intelligence remains the dominant theme across financial markets, investors are becoming increasingly selective about valuations and long-term growth assumptions.

Meanwhile, growing public-sector support for emerging technologies such as quantum computing suggests that the next wave of innovation may already be taking shape.

European Markets Open Lower

European stock markets moved lower on Tuesday as investor enthusiasm surrounding the U.S.-Iran peace agreement faded, with attention turning back to the prospect of elevated interest rates for an extended period.

The pan-European STOXX 600 declined 1%, while Germany’s DAX fell 1.3%. France’s CAC 40 and Italy’s FTSE MIB each lost 1%.

In the UK, the FTSE 100 dropped 0.7%.

UK Political Developments Remain in Focus

Investors continue to assess the political fallout from Prime Minister Keir Starmer’s decision to step down.

However, market reaction has remained relatively restrained, with analysts suggesting investors have largely accepted the likelihood of Andy Burnham emerging as the next leader.

The limited response from financial markets indicates that political uncertainty is not currently viewed as a major risk for UK assets.

Inflation and Interest Rates Return to Centre Stage

European equities remain close to record highs, but investor focus has shifted away from geopolitical developments in the Middle East and back toward inflation and monetary policy.

Market participants are increasingly concerned about the inflationary impact left by several months of conflict and whether central banks will need to maintain restrictive policies for longer than previously anticipated.

The European Central Bank has already delivered one rate increase this year, and investors continue to price in the possibility of another move before year-end.

PMI Data Seen as Key Near-Term Catalyst

Attention is now turning to the release of June purchasing managers’ index (PMI) data, which is expected to provide an updated picture of economic activity across the eurozone.

The data comes shortly after comments from ECB President Christine Lagarde, who stated that the inflation shock has been “large, but not yet large enough” to significantly alter longer-term inflation expectations.

Lagarde also stressed that there is currently no evidence of inflation becoming entrenched through second-round effects or broader de-anchoring of expectations.

Markets Reassess Central Bank Outlook

The initial optimism generated by the U.S.-Iran agreement has been tempered by renewed concerns about global monetary policy.

Investors are increasingly focused on the possibility that the U.S. Federal Reserve could maintain a more hawkish stance, prompting a broader reassessment of interest rate expectations across global markets.

As a result, sentiment in equity markets has become more cautious despite improving geopolitical conditions.

Earnings Season May Provide the Next Direction

With major geopolitical headlines losing influence, analysts believe the upcoming corporate earnings season could become the next significant driver for European equities.

Until companies begin reporting results and updating guidance, markets may struggle to establish a clear direction after the strong rally that pushed many indices toward record levels.

Heineken Advances After CEO Appointment

Among individual stocks, Heineken (EU:HEIA) outperformed the broader market, rising 1.5% after announcing the appointment of Rafa Oliveira as its new chief executive officer.

The gain contrasted with the broader weakness across European equities as investors welcomed the leadership transition.