Category: Market Summary

European equity markets traded slightly higher on Wednesday as a strong round of earnings from major banks, luxury groups and mining companies helped offset growing concerns over Middle East tensions, rising oil prices and uncertainty surrounding the U.S. Federal Reserve’s policy decision.

The pan-European STOXX 600 index gained 0.1% in early trading.

Among the major regional benchmarks, Germany’s DAX advanced 0.2%, France’s CAC 40 climbed 0.3%, London’s FTSE 100 added 0.4%, while Spain’s IBEX 35 traded broadly unchanged.

Banking stocks were among the strongest performers. Standard Chartered (LSE:STAN) raised its full-year income guidance after stronger wealth management activity helped deliver better-than-expected earnings, sending its shares 3% higher. UBS (NYSE:UBS) also reported second-quarter net profit above market forecasts, while Spain’s CaixaBank (TG:48CA) exceeded quarterly earnings expectations.

Luxury and consumer-focused companies also supported the market. Kering (EU:KER) surged 9% after Gucci posted a smaller-than-anticipated decline in quarterly sales. Eyewear group EssilorLuxottica (EU:EL) gained 2.2% after reporting first-half profit ahead of expectations, while mining company Rio Tinto (LSE:RIO) rose 2.5% after delivering its strongest first-half earnings in four years. Pharmaceutical group GSK (LSE:GSK) also advanced after improving its full-year margin outlook and announcing a $2.5 billion restructuring programme.

Despite the positive earnings season, broader market sentiment remained cautious. Government bond yields stayed elevated as investors prepared for the Federal Reserve’s interest rate announcement later in the day.

Although policymakers are widely expected to leave benchmark interest rates unchanged, money markets continue to assign roughly a one-in-three probability to either an unexpected rate increase or a more hawkish policy outlook, reflecting persistent inflation pressures, newly introduced trade tariffs and higher energy costs.

Investor confidence weakened overnight after joint U.S. and Saudi military strikes targeted Iran-backed groups in Iraq following recent drone attacks on Saudi oil infrastructure.

Responding to the accusations, Tehran said attributing the attacks to Iran was a “major miscalculation,” prompting investors to seek safer assets. Brent crude oil climbed more than 3% after Iranian ballistic missiles were intercepted in regional airspace, renewing concerns about potential supply disruptions and sustained energy inflation.

Technology stocks also remained under pressure in Europe, mirroring sharp declines across Asian semiconductor companies after artificial intelligence memory chip producer SK Hynix (NASDAQ:SKHY) reported quarterly operating profit below expectations.

The weaker results from the key AI supplier reignited concerns over elevated valuations across the technology sector, rising capital expenditure commitments and whether major technology companies can continue exceeding increasingly demanding earnings expectations.

The pressure on semiconductor stocks comes ahead of closely watched quarterly earnings from Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META), both scheduled to report later in the day.

As a result, geopolitical uncertainty and weakness across technology stocks continued to temper investor enthusiasm despite a strong flow of corporate earnings across European markets.

FTSE 100 opens steady as earnings support sentiment. Greggs and Aston Martin lead UK headlines while Brent crude rebounds and Nasdaq slips.

Market Overview

The FTSE 100 opened marginally higher at 10,871.16, up 0.001 per cent from the previous close. Across Europe, the Euronext 100 gained 0.04 per cent and Germany’s DAX rose 0.25 per cent. Overnight in the US, the Nasdaq closed lower at 24,876.91, while the S&P 500 finished higher at 7,428.78. Market sentiment was supported by a strong corporate earnings backdrop despite ongoing concerns over Middle East tensions, higher oil prices and expectations that interest rates could remain elevated for longer.

Commodity markets reflected a more cautious tone, with Brent crude rebounding after supply concerns linked to geopolitical developments and OPEC+ expectations, while gold eased and copper edged higher. Natural gas was little changed. Against sterling, the US dollar and Japanese yen strengthened slightly, while the euro and Swiss franc were broadly steady and the Australian dollar weakened marginally. Bitcoin rose against the pound.

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Market Numbers

FTSE 100: Up (0.001%), 10,871.16
Euronext 100: Up (0.04%), 1,905.37
DAX: Up (0.25%), 25,528.18
NASDAQ: Down, 24,876.91
S&P 500: Up, 7,428.78

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In the Headlines

Interim results – Greggs (LSE:GRG)
Greggs reported higher first-half profit and continued market share gains as its value-focused strategy attracted customers despite softer food-to-go demand. Continued investment in new stores, digital channels and supply chain capacity supports its long-term growth strategy.

Trading update – Aston Martin Lagonda (LSE:AML)
Aston Martin improved margins, strengthened liquidity and delivered better first-half performance as preparations for Valhalla customer deliveries gathered pace. The update signals continued progress on profitability and cash generation despite a challenging luxury automotive market.

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Currencies (vs GBP)

USD: Down (-0.02%), $1.3287
CHF: Down (-0.02%), Fr.1.0888
EUR: Up (+0.02%), €1.1669
JPY: Down (-0.04%), ¥217.725
AUD: Up (+0.00%), $1.9051
Bitcoin (BTC/GBP): Up, £48,420.42

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Commodities

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

UK equities moved higher on Wednesday, supported by a series of stronger-than-expected corporate earnings from several FTSE 100 constituents, while energy stocks gained as oil prices climbed following joint U.S. and Saudi military operations in Iraq.

By 03:51 ET (07:51 GMT), the FTSE 100 had advanced 0.50%. Elsewhere in Europe, Germany’s DAX edged up 0.05% and France’s CAC 40 added 0.11%. Sterling also strengthened slightly, rising 0.08% against the U.S. dollar to 1.3304.

Oil prices extended their gains after the U.S. Central Command (CENTCOM) and Saudi Arabian armed forces carried out coordinated strikes on militia logistics and weapons facilities in eastern Iraq on Tuesday. According to CENTCOM, the operation was launched in response to more than 30 drone attacks attributed to Iran’s Islamic Revolutionary Guard Corps (IRGC) over a 72-hour period.

“U.S. Central Command and the Saudi Arabian Armed Forces conducted precision strikes in Iraq, July 28, against Iran-aligned terrorists,” CENTCOM said, adding that the IRGC and its affiliated groups must “halt the aggression immediately to prevent further US military action.”

Saudi Arabia’s Ministry of Defence separately confirmed the strikes, stating they were conducted under Article 51 of the United Nations Charter.

Earlier, Iran fired multiple ballistic missiles toward U.S. military forces stationed in the Middle East in what CENTCOM described as “an attempted surprise attack,” adding on social media platform X that “all Iranian missiles were successfully intercepted.”

According to Axios, the intended target was a U.S. military installation in Jordan, marking Iran’s first direct strike against a U.S. base since Washington paused military action against Tehran last week to allow diplomatic negotiations.

Regional governments reacted swiftly. Kuwait and Qatar both condemned the missile launches, with Kuwait’s Foreign Ministry describing the incident as “a flagrant violation of the sovereignty of Jordan and a threat to its security and stability.”

The escalation followed talks between U.S. and Israeli leaders at the White House, which the U.S. press secretary described as “positive and productive.”

In a video published on Instagram, the Israeli prime minister said the meeting was “a conversation with full partnership” focused on preventing Iran from developing nuclear weapons.

Earlier on Tuesday, the U.S. president told Fox News that military action could resume if negotiations with Tehran failed.

“If they don’t make a deal, then I go back, and I finish the job,” he said, adding that he could destroy most of Iran’s bridges “in less than an hour.”

Commodity markets reflected the heightened geopolitical uncertainty. Brent crude rose 3.3% to $84.78 per barrel, while U.S. West Texas Intermediate crude gained 3.7% to $82.19. Gold futures edged up 0.11% to $4,043.20 an ounce, with spot gold adding 0.4% to $4,044.06.

UK Market Highlights

Rio Tinto (LSE:RIO) reported first-half earnings ahead of expectations, increased its interim dividend and highlighted growing long-term demand for metals linked to artificial intelligence infrastructure.

Glencore (LSE:GLEN) announced a 15% increase in first-half copper production, maintained its full-year production guidance and said marketing earnings are expected to be near the upper end of its annual target range.

Reckitt (LSE:RKT) delivered stronger-than-expected first-half profit, unveiled a £500 million share buyback programme and raised its interim dividend while reaffirming its full-year outlook.

Standard Chartered (LSE:STAN) exceeded second-quarter earnings forecasts, upgraded its income guidance for 2026 and announced a new $1 billion share buyback programme.

European equity markets traded slightly higher on Tuesday as a series of encouraging corporate earnings reports helped counter investor concerns over persistent inflation and rising bond yields ahead of the US Federal Reserve’s latest policy decision.

The pan-European STOXX 600 gained 0.2% in early trading. Germany’s DAX also advanced 0.2%, France’s CAC 40 climbed 0.5%, while London’s FTSE 100 traded broadly unchanged.

Among the strongest performers was Unilever (LSE:ULVR), whose shares jumped around 6% after the consumer goods group reported second-quarter underlying sales growth ahead of market expectations. The performance was supported by resilient sales volumes and continued pricing strength across its personal care and food businesses.

Unilever’s results were viewed as a positive indicator for the wider European economy, suggesting consumer demand for essential household products remains resilient despite higher borrowing costs and ongoing inflationary pressures.

Luxury giant LVMH (EU:MC) gained 2.6% after reporting improved second-quarter sales, supported by solid demand for luxury goods in the United States.

Telecommunications group Orange (EU:ORA) rose nearly 4% after increasing its full-year profit and cash flow guidance.

In the automotive sector, Mercedes-Benz (TG:MBG) advanced 3.5% after reporting stronger second-quarter profit, despite lowering its vehicle sales forecast for 2026. Fellow German manufacturers BMW (TG:BMW) and Volkswagen (TG:VOW3), the parent company of Audi, also gained around 2%.

Elsewhere, French aerospace supplier Safran (EU:SAF) moved higher after raising its financial targets for the full year following record first-half operating margins.

Dutch healthcare technology company Philips (EU:PHIA), however, fell 8.5%, despite reporting second-quarter core earnings that exceeded analyst expectations.

As the European reporting season gathers pace, company results continue to highlight diverging trends across industries. Luxury goods manufacturers and some industrial businesses remain under pressure from higher interest rates and weaker consumer spending, while defensive sectors such as consumer staples, healthcare and aerospace continue to demonstrate resilient demand, pricing power and operational strength.

Although oil prices continued to soften, European equity markets remained cautious as government bond yields stayed elevated. Investors continue to expect central banks to maintain relatively high interest rates in the near term, limiting support for equity valuations.

Additional pressure came from comments by European Central Bank Governing Council member Peter Kazimir, who said another interest rate increase in September could still be appropriate even if the Eurozone economy improves, reinforcing expectations that policymakers remain focused on tackling inflation.

Attention is now shifting to the United States, where the Federal Reserve begins its two-day policy meeting ahead of Wednesday’s interest rate announcement. While policymakers are widely expected to leave rates unchanged, investors will closely monitor Chair Kevin Warsh’s remarks for signals on the future direction of monetary policy.

European luxury shares moved higher on Tuesday after LVMH (EU:MC) reported stronger second-quarter sales growth and confirmed that its flagship Fashion & Leather Goods division returned to positive growth, providing fresh optimism for a sector that has faced subdued consumer demand over the past two years.

By 08:11 GMT, Kering (EU:KER) had gained around 2%, while Hermès (LSE:RMS) and L’Oréal (EU:OR) posted more modest gains of less than 1%.

Despite the positive sector reaction, LVMH shares reversed earlier gains to trade around 1.5% lower, as investors remained unconvinced that the improvement marked the beginning of a sustained recovery in the group’s most profitable business.

The luxury group, which owns brands including Louis Vuitton and Dior and is widely regarded as a benchmark for the industry, generated second-quarter revenue of €19.52 billion. Organic sales increased 3% compared with the same period last year, improving on the 1% growth recorded during the first quarter and exceeding analysts’ expectations of €19.45 billion, according to a Visible Alpha survey.

LVMH’s Fashion & Leather Goods division reported quarterly revenue of €8.9 billion, representing a 1% increase from a year earlier. The result marked a significant improvement from the 2% decline recorded in the previous quarter and ended several consecutive quarters of falling sales. However, the performance remained below analysts’ expectations for growth of 1.7%, with the company citing softer consumer spending across Europe as tourism was affected by the conflict involving Iran.

Analysts at RBC Capital Markets said the main challenge now is whether the division can deliver full-year expectations despite more demanding comparisons in the third quarter, adding that achieving this would be necessary “for the stock to start working.”

LVMH, led by Chairman and Chief Executive Bernard Arnault, said geopolitical and economic uncertainty has intensified as a result of the conflict in the Middle East.

Excluding the effects of the conflict, second-quarter revenue increased by 4%.

The FTSE 100 moved higher on Tuesday, recovering from early losses as selling pressure in technology stocks eased following reports of progress in China’s domestic semiconductor equipment industry. Investors also continued to monitor geopolitical developments in the Middle East and the latest round of UK corporate earnings.

By 07:40 GMT, the FTSE 100 was up 0.22%, while Germany’s DAX gained 0.29% and France’s CAC 40 advanced 0.42%. Sterling was little changed against the US dollar, with GBP/USD edging 0.05% higher to 1.33051.

Technology stocks came under pressure earlier in the session after reports suggested China had made significant advances in developing home-grown semiconductor manufacturing equipment. The news weighed on major US chipmakers ahead of the market open, with Nvidia and AMD both trading lower in pre-market activity.

The weakness spread across Asian markets, with Japan’s Nikkei 225 and South Korea’s Kospi posting notable declines as semiconductor manufacturers Samsung Electronics and SK Hynix fell sharply. Hong Kong’s Hang Seng and China’s Shanghai Composite recorded more modest losses, while Australia’s S&P/ASX 200 ended the session in positive territory.

Meanwhile, geopolitical tensions remained elevated after Yemen’s Houthi movement claimed responsibility for drone attacks targeting Saudi Arabian crude oil supply and transport infrastructure, including facilities linked to shipments to the Red Sea port of Yanbu.

Military spokesperson Brigadier General Yahya Saree said the strikes were carried out in response to what the group described as “Saudi enemy drone incursions into Yemeni airspace.”

The Houthis also claimed to have shot down a Saudi Bayraktar Akinci drone over Al-Jawf Governorate on July 26.

In the United States, President Donald Trump said he was not concerned by Israeli objections to a proposed sale of F-35 fighter jets to Turkey ahead of talks in Washington with Israeli Prime Minister Benjamin Netanyahu.

“Nobody tells me what we should be selling,” Trump said, describing Turkey as “a tremendous ally.”

Trump also dismissed suggestions that Russian support for Iran had materially influenced the conflict, stating, “They have no army, they have no air force, they have no navy.” He added that he intended to discuss Ukrainian allegations regarding Russian satellite intelligence support for Iran during future talks with President Vladimir Putin.

Separately, a federal judge in Florida granted Trump’s legal team until August 27 to amend its $15 billion defamation lawsuit against The New York Times. The newspaper described the case as “an attempt to stifle independent reporting” with “no merit.”

Commodity markets were weaker during the session. Brent crude fell 1.5% to $84.59 a barrel, while WTI crude declined 1.4% to $81.40. Gold futures dropped 0.64% to $4,050.70 per ounce, with spot gold also trading lower.

UK Corporate Highlights

BT (LSE:BT.A) said its Openreach division is facing a proposed intervention from regulator Ofcom over a discounted broadband pricing initiative that the watchdog believes could make it more difficult for alternative fibre providers to compete.

Barclays (LSE:BARC) reported a 17% increase in first-half profit, exceeded market expectations, upgraded its 2026 income guidance and announced a £1 billion share buyback, supported by strong performances in equities trading and investment banking.

Unilever (LSE:ULVR) delivered second-quarter sales growth ahead of forecasts and raised its outlook for underlying sales growth in 2026 as demand remained resilient across its beauty, home care and household product businesses.

Unite Group (LSE:UTG) reported an 8% decline in adjusted first-half earnings, partly reflecting acquisition-related costs, but maintained its full-year guidance as it continued to optimise its property portfolio.

Man Group (LSE:MAN) announced record assets under management alongside stronger-than-expected first-half client inflows, benefiting from heightened market volatility that supported demand for its investment products.

SSP Group (LSE:SSPG) reaffirmed its full-year outlook after posting solid third-quarter sales growth. Strong trading in the UK and Ireland helped offset weaker passenger demand in markets affected by disruption in the Middle East.

FTSE 100 opens steady as Barclays publishes interim results and Games Workshop reports record profits while Brent crude eases and European markets edge higher.

Market Overview

The FTSE 100 opened broadly unchanged at 10,781.87, while the Euronext 100 gained 0.10 per cent and Germany’s DAX advanced 0.62 per cent. Overnight in the US, the Nasdaq closed lower at 24,932.08, while the S&P 500 edged higher to 7,413.18. Market sentiment improved as the recent technology-led sell-off eased, although investors continued to monitor Middle East tensions, bond yields and corporate earnings across Europe.

Commodity markets reflected easing geopolitical concerns, with Brent crude and natural gas both trading lower after reports that investors continued to assess a pause in US strikes on Iran. Copper and gold edged higher, while Bitcoin was unchanged against sterling. Sterling weakened modestly against the US dollar, Swiss franc and Australian dollar, was little changed against the euro, and strengthened slightly against the Japanese yen.

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Market Numbers

FTSE 100: Unchanged (+0.00%), 10,781.87

Euronext 100: Up (+0.10%), 1,906.92

DAX: Up (+0.62%), 25,518.50

NASDAQ: Down, 24,932.08

S&P 500: Up, 7,413.18

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In the Headlines

Interim results – Barclays (LSE:BARC)

Barclays published its interim 2026 results, highlighting performance across its banking divisions and outlining a programme of investor meetings over the coming quarter. The update reinforces the group’s focus on profitability, capital management and engagement with institutional investors following its half-year results.

Record performance – Games Workshop (LSE:GAW)

Games Workshop reported record annual revenue and profit as demand for its Warhammer franchise remained strong. Continued growth in its core hobby business offset an expected decline in licensing income, demonstrating the resilience of the company’s long-term growth strategy.

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Currencies (vs GBP)

USD: Down (-0.01%), $1.329

CHF: Down (-0.01%), Fr.1.089

EUR: Unchanged (+0.00%), €1.169

JPY: Up (+0.03%), ¥217.664

AUD: Down (-0.01%), $1.9022

Bitcoin (BTC/GBP): Down, £47,702.90

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Commodities

Copper: Up

Gold: Up

Brent Crude: Down

Natural Gas: Down

U.S. equity futures pointed to a positive start for Monday’s session as investors responded favourably to signs of easing geopolitical tensions in the Middle East, helping improve sentiment ahead of several key market events.

Markets reacted after President Donald Trump suspended military operations against Iran following nearly two weeks of strikes, allowing diplomatic efforts to continue.

“He’s giving talks some space, he’s giving it a little bit of room,” U.S. ambassador to the United Nations Mike Waltz told Fox News on Sunday.

Iran also confirmed it had halted retaliatory attacks while reporting progress in discussions with Oman over the future management of the Strait of Hormuz, easing fears of further disruption to global oil supplies.

Falling oil prices support investor confidence

Crude oil prices moved sharply lower after the latest diplomatic developments, with U.S. oil futures dropping by more than 6%.

Lower energy prices also pushed Treasury yields lower, reducing concerns over inflation and monetary policy ahead of this week’s Federal Reserve meeting.

“Sentiment has received a further boost from a sizzling stock market debut in China by silicon chip maker CXMT,” said AJ Bell investment director Russ Mould.

He added, “Its near five-fold surge may help to soothe concerns about the AI trade after slumps in SpaceX and Korea’s SK Hynix after their recent offerings.”

Investors look ahead after volatile trading

Friday’s session ended with mixed results after stocks experienced wide swings throughout the day.

The Nasdaq declined 0.6% to 24,975.82, while the S&P 500 edged 0.1% higher to 7,411.98. The Dow Jones Industrial Average added 0.5% to close at 51,947.25.

On a weekly basis, the Nasdaq fell 2.1%, while the S&P 500 and Dow lost 0.6% and 0.4%, respectively.

Tariffs remain a source of uncertainty

Friday’s early gains were fuelled by lower oil prices following reports that Pakistan was exploring ways to revive U.S.-Iran negotiations.

However, market sentiment weakened later in the session after President Donald Trump threatened additional tariffs on the European Union in response to regulatory fines imposed on major U.S. technology companies.

The administration also confirmed tariffs ranging from 10% to 12.5% on imports from 60 economies, including the European Union, the United Kingdom, China, India, Japan and Canada.

Sector performance remains mixed

Semiconductor stocks were among the weakest performers, with Intel (NASDAQ:INTC) falling 7.9% despite reporting stronger-than-expected quarterly results and issuing upbeat guidance.

Airline shares outperformed as lower fuel prices improved the sector’s outlook, while oil services companies also advanced, led by SLB (NYSE:SLB), which jumped 11% after posting earnings above expectations.

Commercial real estate and homebuilding companies also benefited from lower Treasury yields, which eased concerns over financing costs.

European equity markets traded higher on Monday as investors welcomed signs of improving relations between the United States and Iran, reducing concerns over energy supplies and geopolitical risk.

Brent crude dropped about 6% to trade near $90 a barrel after Washington and Tehran suspended military operations over the weekend, opening the door to renewed diplomatic discussions aimed at preventing a broader regional conflict.

Iran also reported progress in negotiations with Oman regarding the management of the Strait of Hormuz, raising optimism that one of the world’s most important oil shipping routes will remain open without further disruption.

Market participants are now shifting their focus toward a busy week of corporate earnings from major U.S. technology companies, alongside the Federal Reserve’s upcoming monetary policy decision.

Major European indices move higher

Germany’s DAX gained 1.6%, leading regional markets, while France’s CAC 40 added 0.8%. The UK’s FTSE 100 also traded higher, advancing 0.5%.

Carmakers benefit from continued EV demand

Automotive stocks posted solid gains after recent industry figures showed demand for electrified vehicles continued to support growth across the European car market in June.

Volkswagen (TG:VOW3), Mercedes Benz (TG:MBG), Volvo (FTSE:SSVOLVO) and Renault (EU:RNO) all climbed between 1% and 2%.

DCC agrees takeover as Vodafone and AstraZeneca climb

DCC Energy (LSE:DCC) gained more than 1% after the Irish energy distributor accepted a £5.75 billion takeover proposal from private equity groups KKR and Energy Capital Partners.

Vodafone Group (LSE:VOD) jumped 4% after reporting a strong first quarter and saying it now expects full-year earnings to finish at the upper end of its guidance range.

AstraZeneca (LSE:AZN) rose 1.3% after delivering better-than-expected second-quarter profit while reaffirming both its full-year and long-term financial outlook.

Siemens strengthens AI offering

Shares of Siemens (TG:SIE) advanced 1.4% after the industrial technology group announced the integration of new Nvidia artificial intelligence software into its Intelligence Center X platform.