Category: Market Summary

UK and European Markets Move Lower

British equities traded lower on Tuesday as investors weighed the political implications of Prime Minister Keir Starmer’s resignation and considered the potential policy direction of a future government led by Andy Burnham.

By 07:31 GMT, the FTSE 100 had fallen 0.71%, while Germany’s DAX was down 1.35% and France’s CAC 40 had declined 0.85%. Sterling also weakened modestly, slipping 0.08% against the U.S. dollar to $1.3242.

Although markets initially welcomed the prospect of a swift Labour leadership transition, sentiment deteriorated as investors refocused on wider geopolitical risks and economic uncertainty.

Focus Turns to Potential Burnham Leadership

Attention has now shifted to the Labour leadership contest, with Andy Burnham widely viewed as the leading candidate to succeed Starmer.

If no significant challenger emerges, Burnham could become prime minister as early as 17 July.

Investors had initially responded positively to the reduced likelihood of a prolonged political contest, helping support UK government bonds during Monday’s session. However, that optimism faded as concerns surrounding global developments returned to the forefront.

U.S.-Iran Talks Continue to Influence Sentiment

Geopolitical developments remained a key driver of market activity across Europe.

Negotiations between U.S. and Iranian officials continued in Switzerland for a second day, although mixed messages from both sides left investors uncertain about the prospects for a lasting agreement.

U.S. Vice President JD Vance described the opening round of discussions as “very, very good” and said Iran had agreed to allow nuclear inspectors access to the country.

However, Iran’s foreign ministry indicated that substantive negotiations on the “nuclear issue” had not yet begun, highlighting the gap between the two sides.

Further uncertainty emerged after Iranian Parliament Speaker Mohammad Bagher Ghalibaf stated that the Strait of Hormuz “will never go back to the way it was before the war” and suggested Iran would exercise greater control over the strategically important shipping route.

His comments tempered optimism surrounding the memorandum of understanding signed on 17 June and reinforced concerns about future energy market disruptions.

Oil and Gold Prices Fall

Commodity markets also reflected the cautious mood.

Crude oil prices declined as traders monitored developments in the Middle East and assessed the likelihood of improved regional stability.

West Texas Intermediate crude fell 1.75% to $72.58 per barrel, while Brent crude dropped 1.72% to $76.19.

Precious metals also came under pressure, with gold futures falling 1.60% to $4,135.15 and spot gold declining 1.78% to $4,116.62 per ounce.

Telecom Plus Falls After Profit Warning

Among UK corporate movers, Telecom Plus (LSE:TEP), the owner of Utility Warehouse, came under pressure after warning that adjusted profit for FY2027 would be “meaningfully lower” as it embarks on a new five-year investment programme.

The company reduced its final dividend to 12 pence per share from 57 pence a year earlier, despite reporting record annual profit and customer growth.

Management said increased investment would support long-term expansion but would weigh on near-term profitability.

Ramsdens Agrees Takeover by FirstCash

Ramsdens Holdings (LSE:RFX) announced it had agreed to a recommended takeover by U.S.-based pawnbroking group FirstCash Holdings (NASDAQ:FCFS).

The transaction represents FirstCash’s first major move into the UK market and values Ramsdens at approximately £206 million.

Shares in Ramsdens surged following the announcement as investors welcomed the acquisition premium.

Unite Group Sees Major Shareholder Reduce Stake

Student accommodation specialist Unite Group (LSE:UTG) also attracted attention after its largest shareholder, CPPIB, reduced its holding to 7% from 14.08%.

The move resulted in the immediate departure of CPPIB-nominated director Thomas Jackson from the board.

Investors are expected to monitor any further changes to the company’s shareholder structure.

Bunzl Upgrades Revenue Outlook

Business supplies distributor Bunzl (LSE:BNZL) provided a more positive update, raising its revenue growth expectations for 2026 following a strong first-half performance.

The company cited improving conditions in North America as a key driver of growth, although management noted that higher fuel and freight costs linked to Middle East tensions continued to pressure margins.

Competition Regulator Targets StubHub UK

Elsewhere, Britain’s competition watchdog imposed a £900,000 fine on StubHub UK and ordered compensation for more than 50,000 customers.

The regulator found that the ticket resale platform had failed to properly disclose mandatory fees during the purchasing process, resulting in consumers paying more than initially advertised.

The decision forms part of broader efforts by regulators to improve transparency in online ticket sales and consumer pricing practices.

FTSE 100 steadies while European markets weaken. Telecom Plus cuts outlook, Bunzl upgrades guidance, and Brent crude edges lower.

Market Overview

UK markets opened mixed, with the FTSE 100 marginally higher at 10,438.24 from the previous close. Across Europe, sentiment weakened as the Euronext 100 fell 0.55 per cent and Germany’s DAX declined 1.26 per cent at the open. In the United States, the Nasdaq closed lower at 26,166.60 and the S&P 500 ended at 7,472.79. Investors continued to assess political uncertainty following Sir Keir Starmer’s resignation, alongside concerns that interest rates could remain higher for longer despite easing geopolitical tensions around Iran.

In commodities, gold traded higher while copper edged lower. Brent crude eased slightly as markets monitored reports surrounding Iranian oil exports, while natural gas was modestly firmer. Against sterling, the US dollar, euro, Swiss franc and Japanese yen strengthened, while the Australian dollar weakened. Bitcoin was lower versus the pound.

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Market Numbers

FTSE 100: Up (+0.00%), 10,438.24

Euronext 100: Down (-0.55%), 1,915.26

DAX: Down (-1.26%), 24,835.56

NASDAQ: Down, 26,166.60

S&P 500: Down, 7,472.79

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In the Headlines

Profit Warning – Telecom Plus (LSE:TEP)

Telecom Plus warned that FY27 profit is expected to be lower than previously anticipated and announced a dividend reduction despite reporting record FY26 results. The update prompted a sharp share price reaction as investors reassessed earnings expectations and cash returns.

Outlook Upgrade – Bunzl (LSE:BNZL)

Bunzl raised its outlook after benefiting from inflation-linked pricing and stronger sales volumes across key markets. The improved guidance suggests resilient demand conditions and provided support for the company’s shares.

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Currencies (vs GBP)

USD: Down (-0.00%), $1.3246

CHF: Down (-0.00%), Fr.1.0715

EUR: Down (-0.00%), €1.1593

JPY: Down (-0.01%), ¥214.0215

AUD: Up (+0.01%), $1.8941

Bitcoin (BTC/GBP): Down £47,484.91

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Commodities

Copper: Down

Gold: Up

Brent Crude: Down

Natural Gas: Up

U.S. equity futures traded modestly higher on Monday, pointing to a positive start for Wall Street as investors welcomed signs of progress in negotiations between the United States and Iran and a further decline in crude oil prices.

The upbeat tone follows strong gains recorded in the previous session, although market participants remain cautious as they wait for additional evidence that the emerging peace process can hold.

Oil Retreat Boosts Investor Confidence

Falling oil prices provided support for risk assets, easing concerns over inflation and the potential economic fallout from instability in the Middle East.

The move came after officials involved in talks between Washington and Tehran reported encouraging developments during discussions held in Switzerland.

Lower energy costs are viewed as a positive for households, businesses and financial markets, while also reducing pressure on central banks to maintain restrictive monetary policies.

Negotiators Highlight Positive Developments

Vice President JD Vance described the discussions as having achieved “great progress” despite a “little bit of threatening” and a “little bit of whining.”

He also referred to Iran’s decision to allow inspectors from the International Atomic Energy Agency back into the country as a “major milestone for the American people, and the first step in permanently denuclearizing or permanently ending a nuclear weapons program in Iran.”

Mediators from Qatar and Pakistan echoed that assessment, stating that “encouraging progress has been made” during the negotiations.

Inflation Data Remains Key Focus

While diplomatic developments helped improve sentiment, investors are still looking for firmer confirmation that the agreement can be sustained.

Attention is also turning toward upcoming U.S. inflation data, which could provide fresh clues regarding the future direction of Federal Reserve policy.

The absence of major economic releases at the start of the week may keep trading volumes relatively subdued.

Markets Build on Last Week’s Rally

Wall Street ended the previous session on a strong note, recovering from late weakness and extending gains throughout the day.

The Nasdaq advanced 1.9% to 26,517.93, while the S&P 500 gained 1.1% to 7,500.58. The Dow Jones Industrial Average rose a more modest 0.1% to 51,564.70.

For the holiday-shortened week, the Nasdaq climbed 2.4%, the S&P 500 gained 0.9% and the Dow added 0.7%.

Preliminary Agreement Raises Hopes for Lasting Peace

Investor optimism was supported by confirmation that the United States and Iran had signed a preliminary framework agreement aimed at ending the conflict in the region.

The memorandum of understanding signed by President Donald Trump and Iranian President Masoud Pezeshkian establishes a 60-day negotiation process intended to secure a permanent settlement.

Initial measures include the reopening of the Strait of Hormuz and the removal of the U.S. naval blockade on Iranian ports.

Falling Crude Prices Seen as Economic Tailwind

Russ Mould, investment director at AJ Bell, emphasized the broader significance of lower oil prices.

“That has huge significance for inflation and interest rates, as well as business, consumer and investor sentiment,” said Mould. “It takes the pressure off industries and households and is hugely positive for global economic growth.”

Intel Leads Technology Rally

Technology shares received an additional boost from Intel (NASDAQ:INTC), which surged 10.6% after President Trump said Apple (NASDAQ:AAPL) had agreed to collaborate with the chipmaker on semiconductor design and manufacturing in the United States.

The announcement helped propel the Philadelphia Semiconductor Index 6.4% higher to a record close.

Labour Market Remains Resilient

Recent economic data indicated continued stability in the U.S. labour market.

Initial jobless claims fell to 226,000 in the week ended June 13, down from a revised 230,000 the previous week and broadly in line with expectations.

The figures reinforced the view that employment conditions remain relatively strong.

Airlines Benefit from Lower Fuel Costs

Airline stocks were among the strongest performers as lower oil prices improved the outlook for fuel expenses.

The NYSE Arca Airline Index gained 3.8%, while computer hardware and housing-related stocks also posted notable advances.

By contrast, energy and gold shares underperformed as investors shifted toward more growth-oriented sectors.

European equities were largely directionless on Monday as investors assessed ongoing diplomatic developments in the Middle East while also reacting to political uncertainty in the United Kingdom following the resignation of Prime Minister Keir Starmer.

FTSE 100 Advances Despite Political Uncertainty

The UK’s FTSE 100 Index outperformed its continental peers, rising 0.3% from Friday’s close of 10,363.27. The benchmark was recently trading at 10,390.43 after moving within a range of 10,345.75 to 10,394.60 during the session.

Market participants continued to evaluate the potential implications of the upcoming Labour leadership contest following Starmer’s departure.

French Stocks Under Pressure

France’s CAC 40 Index declined 0.8% to 8,358.28, having traded between 8,435.81 and 8,353.06 during the day.

Among individual stocks, STMicroelectronics (BIT:STMMI) (EU:STMPA) led the gainers with an advance of 1.87%, while Hermes International recorded the sharpest decline, falling 5.3%.

Only eight of the index’s 40 constituents were trading higher.

DAX Slips as Volkswagen Weighs on Performance

Germany’s DAX fell 0.2% to 24,931.96, compared with Friday’s closing level of 24,985.82.

The index fluctuated between 24,896.19 and 25,082.78 during the session.

Infineon Technologies posted the strongest performance, climbing 4.9%, while Volkswagen was the weakest performer, dropping 2.8%.

As in France, only eight of the DAX’s 40 members remained in positive territory.

Swiss Market Moves Lower

Switzerland’s benchmark Stock Market Index also traded lower, falling 0.3% from its previous close of 13,774.02 to 13,734.30.

The session range stood between 13,707.30 and 13,773.80.

Lonza Group led the gainers with a rise of 0.9%, while Holcim posted the largest decline, losing 2.4%.

Stoxx 50 Holds Steady

The pan-European Stoxx 50 index remained broadly unchanged at 6,293.86.

During the session, the benchmark traded between 6,280.95 and 6,314.66, reflecting the cautious mood across regional markets.

Currency Markets Remain Relatively Stable

In foreign exchange markets, the U.S. dollar was little changed as investors weighed signs of progress in negotiations between Washington and Tehran.

The euro weakened slightly, with EUR/USD down 0.10% at 1.1458, while GBP/USD edged 0.03% higher to 1.3238.

Meanwhile, the dollar gained 0.10% against the Swiss franc, with USD/CHF trading at 0.8079.

Investors Continue to Track Geopolitical Risks

European markets ended Friday mostly lower as traders reacted to mixed signals surrounding U.S.-Iran negotiations and renewed tensions between Israel and Lebanon.

Those geopolitical developments remain a key focus for investors as they assess the potential impact on global growth, energy markets and monetary policy expectations.

FTSE 100 slips as investors assess UK political uncertainty. Ocado confirms succession plans while easyJet rejects a takeover bid. Brent crude rises.

Market Overview

UK markets were marginally weaker at the open, with the FTSE 100 slipping 0.03 per cent to 10,363.58. Across Europe, the Euronext 100 edged 0.03 per cent higher and Germany’s DAX gained 0.04 per cent. Investors remained cautious as political uncertainty surrounding the UK government resurfaced, while European markets assessed developments following the first round of US-Iran talks.

US markets were closed on Friday.

Commodity markets reflected a mixed tone. Brent crude advanced as renewed geopolitical tensions and fresh US rhetoric towards Iran supported oil prices. Gold eased slightly while copper moved higher. Natural gas was little changed. Sterling strengthened against the US dollar and Australian dollar but weakened against the euro, Swiss franc and Japanese yen. Bitcoin was unchanged against sterling.

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Market Numbers

FTSE 100: Down (-0.03%), 10,363.58

Euronext 100: Up (+0.03%), 1,927.40

DAX: Up (+0.04%), 25,035.93

NASDAQ: Closed

S&P 500: Closed

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In the Headlines

Leadership Planning – Ocado Group (LSE:OCDO)

Ocado confirmed that its board and chief executive are engaged in ongoing succession planning following market speculation about future leadership arrangements. The update is intended to reassure investors that long-term governance and continuity plans remain in place.

Bid Rejected – easyJet (LSE:EZJ)

easyJet shares rose after the airline rejected a third takeover proposal from Castlelake valued at 625p per share. The board said the offer significantly undervalued the business, highlighting confidence in the company’s strategy and future prospects.

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Currencies (vs GBP)

USD: Down (-0.02%), $1.3208

CHF: Up (+0.01%), Fr.1.0673

EUR: Up (+0.03%), €1.1523

JPY: Up (+0.01%), ¥213.22

AUD: Down (-0.03%), $1.8861

Bitcoin (BTC/GBP): Up, £47,898.58

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Commodities

Copper: Up

Gold: Down

Brent Crude: Up

Natural Gas: Up

U.S. equity futures steadied on Monday after diplomatic signals from Iran helped calm concerns over a renewed Middle East conflict, while investors continued to assess the implications of recent developments in the artificial intelligence sector.

Market participants were particularly focused on comments from President Donald Trump regarding Anthropic (NASDAQ:ANTP), as well as the ongoing transformation of the semiconductor industry driven by AI-related demand. Elsewhere, Charles Schwab (NYSE:SCHW) drew attention after reports emerged that it plans to introduce binary options products.

Futures Recover From Early Weakness

Futures linked to major U.S. indices trimmed losses after initially declining on concerns that tensions between Washington and Tehran could intensify.

Earlier market caution followed remarks from Trump suggesting that military action against Iran remained a possibility despite ongoing diplomatic efforts. However, sentiment improved as officials involved in talks in Switzerland indicated that discussions were progressing constructively.

Investors continue to view the outcome of the negotiations as critical for energy markets, with any sustainable agreement likely to support risk assets and ease inflation concerns tied to oil prices.

Diplomatic Momentum Builds

Iranian Foreign Minister Abbas Aragchi said “major progress” had been achieved during the latest round of negotiations with the United States.

According to Aragchi, discussions covered a range of issues including Iranian oil exports, maritime restrictions and future reconstruction initiatives. Mediators from Pakistan and Qatar also described the talks as productive and confirmed that additional meetings are expected.

Although many details remain unresolved, the tone of the discussions suggests both sides remain committed to finding a diplomatic solution.

Anthropic Remains Under Regulatory Spotlight

Artificial intelligence stocks remained in focus after Trump appeared to soften his position on Anthropic.

In comments to Axios, the president said the company had responded “very quickly” and “responsibly” to concerns raised by U.S. officials. The remarks followed recent restrictions imposed on Anthropic’s advanced AI models and wider debate over national security controls on emerging technologies.

While investors welcomed the less confrontational tone, uncertainty surrounding future regulation continues to be viewed as a significant risk for the AI industry.

SK Hynix Takes Top Spot in South Korea

SK Hynix overtook Samsung Electronics as South Korea’s largest listed company by market value, highlighting the growing importance of AI infrastructure.

The memory chip manufacturer has benefited from strong demand for high-bandwidth memory products used in advanced artificial intelligence systems and remains a key supplier to Nvidia.

The milestone illustrates how companies providing essential hardware are becoming major beneficiaries of the AI investment cycle.

Charles Schwab Eyes New Trading Product

According to reports, Charles Schwab is working alongside Cboe Global Markets to launch binary options tied to the S&P 500.

The contracts would allow investors to make simple directional predictions on the index, receiving a fixed payout if correct and no return if incorrect.

Supporters view the products as an accessible way to express market views, while critics argue they could encourage speculative behaviour. The initiative reflects broader efforts by brokerage firms to expand their offerings and attract retail investors.

European stock markets posted modest gains on Monday as investors assessed the outcome of the first round of diplomatic discussions between the United States and Iran, while also keeping an eye on political uncertainty in the United Kingdom following reports that Prime Minister Keir Starmer could step down.

The pan-European STOXX 600 index rose 0.1% at the open. Germany’s DAX traded broadly flat, while France’s CAC 40 added 0.1%. Italy’s FTSE MIB moved slightly lower, slipping 0.1%.

UK Political Uncertainty Caps Market Moves

In London, the FTSE 100 traded little changed as investors awaited further clarity from Downing Street.

Market sentiment remained cautious after reports suggested that Starmer could resign following a parliamentary election victory secured by his internal rival, Andy Burnham. Despite the headlines, investors largely refrained from making significant moves until official confirmation emerged.

ECB Comments in Focus

Attention also turned to the European Central Bank, with speeches from President Christine Lagarde and Chief Economist Philip Lane scheduled later in the session.

Investors are looking for fresh insight into the ECB’s policy outlook, particularly after the recent interest-rate increase linked to inflationary pressures stemming from geopolitical tensions.

With signs that conflict in the Middle East may be easing, traders are eager to understand how policymakers intend to balance inflation risks against the need to support economic growth.

Markets Navigate Mixed Signals from Middle East

The geopolitical backdrop remains a key driver of market sentiment.

European equities reached record highs last week after Washington and Tehran agreed to a landmark peace deal that reopened the Strait of Hormuz, one of the world’s most important energy shipping routes.

However, uncertainty quickly returned after conflicting reports emerged regarding the status of the waterway. Iranian officials claimed the Strait had been closed again, while shipping data suggested commercial traffic continued to move through the region.

The situation became more complex as U.S. and Iranian negotiators resumed discussions in Switzerland. At the same time, U.S. President Donald Trump warned of possible new military action against Iran, citing ongoing tensions involving Hezbollah in Lebanon.

Iranian negotiators, meanwhile, indicated that meaningful progress was being achieved during the talks, although the absence of concrete details left investors cautious.

Focus Shifts Back to Fundamentals

Market observers noted that the strong rally seen across Europe in recent sessions may begin to lose momentum as investor attention gradually shifts away from geopolitical developments and back towards corporate earnings, economic fundamentals and market valuations.

Later in the day, investors were also due to receive the latest eurozone consumer confidence figures for June, providing another gauge of economic sentiment across the region.

Notable Movers

Among individual stocks, easyJet (LSE:EZJ) advanced 3% after rejecting a third takeover proposal from investment firm Castlelake.

Babcock International (LSE:BAB) fell nearly 4% after reporting pre-tax profit below analyst expectations.

Elsewhere, BioArctic (TG:B9A) surged 8% following the announcement of a collaboration agreement with Eli Lilly, boosting investor optimism about the company’s future growth prospects.

UK equities traded largely unchanged on Monday after Prime Minister Keir Starmer announced his resignation, setting in motion a contest to choose a new Labour leader, while investors remained focused on developments in U.S.-Iran negotiations and their implications for global markets.

The FTSE 100 slipped 0.03% by 08:47 GMT, while Germany’s DAX declined 0.27% and France’s CAC 40 eased 0.42%. Sterling weakened 0.25% against the U.S. dollar to 1.3201.

Starmer Announces Resignation

Keir Starmer confirmed he would step down as both Prime Minister and Labour Party leader, stating that he had informed the King of his decision and requested that Labour’s National Executive Committee begin the process of selecting a successor. Nominations for the leadership contest are expected to open on 9 July.

Speaking outside Downing Street, Starmer defended his time in office, highlighting what he described as the fastest reduction in NHS waiting lists in 17 years and the largest improvement in workers’ and renters’ rights “in a generation.”

Attention has quickly turned to Greater Manchester Mayor Andy Burnham, who is widely regarded as the leading candidate to succeed Starmer following his strong performance in the recent Makerfield by-election.

Investors Focus on Iran Talks Rather Than UK Politics

Despite the political developments, market reaction remained limited as investors continued to place greater emphasis on international developments, particularly negotiations between the United States and Iran.

According to Andreas Lipkow, chief market analyst at CMC Markets, investors were “continuing to place greater weight on developments in US-Iran negotiations than on domestic political noise. That suggests markets remain primarily focused on the outlook for energy prices and global risk sentiment rather than near-term uncertainty in Westminster.”

Diplomatic efforts involving mediators from Qatar and Pakistan reportedly made progress, including the establishment of a new High-Level Committee and a dedicated communication channel aimed at ensuring safe navigation through the Strait of Hormuz.

Although comments from U.S. President Donald Trump briefly disrupted discussions over the weekend, negotiations subsequently resumed. Analysts at Jefferies said they remain “optimistic that a deal will be reached,” even if the current 60-day truce period needs to be extended.

Oil Falls as Hormuz Concerns Ease

Oil prices moved lower as hopes for uninterrupted shipping through the Strait of Hormuz reduced geopolitical risk premiums.

WTI crude declined 0.70% to $75.32 per barrel, while Brent crude fell 1.64% to $78.72 per barrel.

Jefferies noted that as long as oil remains around the $75 level, “risk sentiment should remain well-supported,” adding that it has increased exposure to risk assets on expectations that the truce will continue.

Gold moved in the opposite direction, with investors continuing to seek exposure to safe-haven assets. Spot gold rose 0.80% to $4,193.38 an ounce, while gold futures advanced 0.92% to $4,217.82.

UK Corporate Round-Up

easyJet Rejects Third Takeover Proposal

easyJet (LSE:EZJ) rejected a third takeover approach from U.S. investment firm Castlelake, which valued the airline at 625 pence per share. The board concluded that the proposal did not adequately reflect the company’s value and future prospects.

Ocado Addresses Succession Speculation

Ocado Group (LSE:OCDO) confirmed that chief executive Tim Steiner and the board continue to undertake long-term succession planning and engage with potential candidates. The statement followed a media report suggesting that Vonage chief executive Niklas Heuveldop had been approached regarding the role.

Babcock Reports Profit Impact From Type 31 Charge

Babcock International (LSE:BAB) reported that annual underlying operating profit fell 19% to £293.3 million after the company recorded a £140 million charge related to its Type 31 frigate programme for the Royal Navy. Despite the impact, management maintained confidence in the group’s longer-term outlook, supported by strong demand across defence and nuclear markets.

FTSE 100 steadies as Marks Electrical reports weaker revenue and Union Jack Oil abandons Oklahoma well. Brent crude slips while gold rises.

Market Overview

UK and European markets were broadly steady at the open, with the FTSE 100 edging 0.01 per cent higher to 10,400.46, while the Euronext 100 slipped 0.02 per cent and Germany’s DAX gained 0.19 per cent. In the US, overnight sentiment was stronger, with the Nasdaq and the S&P 500 both closing higher. Investors continued to assess political uncertainty in the UK, Federal Reserve policy expectations and developments in global trade and geopolitical relations. Oil markets remained in focus as supply flows through the Strait of Hormuz improved, easing some concerns over disruption.

Commodity markets presented a mixed picture. Gold and copper moved higher, while Brent crude and natural gas eased. Bitcoin was unchanged against sterling. Sterling weakened against the Swiss franc and Australian dollar but strengthened modestly against the euro and US dollar, reflecting a cautious risk environment and ongoing macroeconomic uncertainty.

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Market Numbers

FTSE 100: Up (+0.01%), 10,400.46

Euronext 100: Down (-0.02%), 1,930.50

DAX: Up (+0.19%), 25,075.33

NASDAQ: Up, 26,517.93

S&P 500: Up, 7,500.58

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In the Headlines

Revenue Decline – Marks Electrical (LSE:MRK)

Marks Electrical reported an 8 per cent fall in FY26 revenue as the online electricals retailer reduced lower-margin marketplace activity and focused on its core direct sales operations. The results highlight continued pressure on consumer spending and margins across the retail sector.

Well Abandoned – Union Jack Oil (LSE:UJO)

Union Jack Oil said it will abandon the Crossroads well in Oklahoma after testing failed to deliver commercial hydrocarbon flows. The outcome is a setback for the company’s US growth ambitions and removes a potential near-term production catalyst.

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Currencies (vs GBP)

USD: Up (+0.01%), $1.3202

CHF: Down (-0.02%), Fr.1.0627

EUR: Up (+0.01%), €1.1521

JPY: Up (+0.01%), ¥212.944

AUD: Down (-0.02%), $1.8825

Bitcoin (BTC/GBP): Up, £47,647

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Commodities

Copper: Up

Gold: Up

Brent Crude: Down

Natural Gas: Down

Investors Reassess Geopolitical Risks Following Diplomatic Setback

U.S. equity futures traded slightly lower on Friday as investors digested the cancellation of planned talks between the United States and Iran, casting doubt over the durability of the recently announced peace framework.

Oil prices continued to move lower as markets focused on the prospect of increased global crude supplies following the planned reopening of the Strait of Hormuz. However, the abrupt halt to diplomatic discussions reminded investors that tensions between Washington and Tehran remain unresolved.

Wall Street Ends Strong Session Before Holiday Closure

U.S. financial markets were closed on Friday for the Juneteenth holiday, following a positive session on Thursday.

The previous day’s gains came after investors looked past the Federal Reserve’s latest policy meeting, despite indications that policymakers may still consider raising interest rates later this year. The S&P 500 climbed 1.1%, the Dow Jones Industrial Average added 0.1%, and the Nasdaq Composite advanced 1.9%.

Technology shares outperformed, with semiconductor companies benefiting from news that Apple would collaborate with Intel on domestic chip production in the United States.

Laurence Booth, Global Head of Markets at CMC Markets, warned that investors may be underestimating ongoing geopolitical risks.

He said: “A key question for investors is whether markets have become too comfortable with the assumption that geopolitical risks are fading.”

He added: “Recent gains in equities have been supported by expectations of de-escalation, but stalled negotiations suggest the underlying issues remain unresolved. That leaves markets vulnerable to any deterioration in sentiment heading into next week.”

Diplomatic Progress Faces New Challenges

Plans for fresh negotiations between U.S. and Iranian officials were unexpectedly shelved after U.S. Vice President JD Vance withdrew from scheduled talks in Switzerland.

The meeting was expected to focus on the implementation of the recently agreed framework and address issues surrounding Iran’s nuclear programme. Iranian reports suggested that Tehran wants further proof that the United States is honouring its commitments before returning to the negotiating table.

Although the cancellation does not necessarily signal a breakdown in relations, it has raised concerns that tensions could flare up again, with implications for energy markets and global inflation.

Crude Prices Continue Weekly Slide

Oil markets remained under pressure, with Brent crude falling 1.1% to $79.01 a barrel and West Texas Intermediate declining 0.7% to $76.05.

Both contracts are on track to record weekly losses of almost 10%, reflecting expectations that additional supply could return to global markets as restrictions around the Strait of Hormuz are gradually eased.

ASML Rejects U.S. Concerns Over China

Shares in ASML (EU:ASML) slipped after reports that U.S. officials had questioned whether one of the company’s advanced lithography systems was operating in China despite export controls.

The Dutch semiconductor equipment manufacturer denied the claims, stating that it has never delivered an EUV machine to China.

The development highlights the continuing technology dispute between Washington and Beijing as restrictions on advanced semiconductor equipment remain firmly in place.

Pentagon May Seek Additional Funding

The Wall Street Journal reported that the Pentagon is seeking roughly $80 billion in additional funding to cover costs associated with the Iran conflict and other strategic priorities.

The proposed package could also include support for agricultural programmes and disaster recovery efforts. Investors will be monitoring developments closely given the potential implications for government borrowing, fiscal policy and interest-rate expectations.