Category: Market Summary

European equity markets opened lower on Monday as renewed conflict in the Middle East weighed on investor sentiment, while a sharp rise in oil prices supported energy stocks after Iran announced the closure of the Strait of Hormuz.

The pan-European STOXX 600 slipped 0.2% in early trading. Germany’s DAX lost 0.3%, France’s CAC 40 declined 0.2%, while London’s FTSE 100 outperformed with a 0.2% gain, supported by its heavy weighting in oil majors.

Energy Stocks Outperform

The jump in crude prices lifted shares across the European energy sector.

Shell (LSE:SHEL) rose 1.8%, while BP (LSE:BP.) advanced 2.7%. TotalEnergies (EU:TTE) gained 2.3%, with Maurel & Prom (EU:MAU), Eni (BIT:ENI) and other oil producers also benefiting from the stronger commodity backdrop.

The rise in energy stocks helped limit losses across the broader European market.

Strait of Hormuz Concerns Lift Crude Prices

Investor sentiment deteriorated after hostilities between the United States and Iran intensified over the weekend.

Iran’s Revolutionary Guards announced that the Strait of Hormuz had been closed “until further notice” following an attack on a commercial vessel and subsequent U.S. military retaliation.

U.S. Central Command disputed the claim, stating that the strategic shipping route remained open to lawful maritime traffic.

Even so, fears of potential disruption along a passage responsible for transporting around one-fifth of global seaborne oil supplies sent energy markets sharply higher.

Both Brent crude and West Texas Intermediate (WTI) climbed by more than 4.4%.

Recent Market Rally Faces Pressure

Monday’s decline marked a reversal after European equities recovered ground during the latter part of last week.

Technology companies and semiconductor stocks had led those gains, supported by optimism over artificial intelligence investment and hopes that diplomatic efforts in the Middle East would ease geopolitical tensions.

With the latest escalation, investors are now reassessing risk exposure, and further weakness could erase much of last week’s recovery.

Markets Await ECB Signals

Attention later in the day will turn to comments from European Central Bank Executive Board member Isabel Schnabel.

Investors will be looking for fresh clues on the outlook for interest rates, particularly given Schnabel’s reputation as one of the ECB’s more hawkish policymakers and her consistently cautious approach to reducing borrowing costs.

Akzo Nobel Advances on Takeover Interest

Among individual movers, Akzo Nobel (EU:AKZA) gained around 3% after Nippon Paint submitted an offer for the company’s decorative paints business.

European oil and gas shares moved higher on Monday after fresh military exchanges between the United States and Iran intensified concerns over global energy supplies, pushing crude prices sharply higher.

The renewed escalation has also renewed uncertainty over the interim agreement reached between Washington and Tehran last month, which had been intended to reopen the Strait of Hormuz and support further diplomatic negotiations.

Crude Prices Jump on Supply Concerns

Brent crude futures climbed 2.9% to $78.24 a barrel by 04:25 ET (08:25 GMT), while U.S. West Texas Intermediate (WTI) gained 2.7% to $73.34 a barrel.

The rally followed reports that Iran had once again declared the Strait of Hormuz closed, raising fears of further disruption to one of the world’s most important energy shipping routes.

European Oil Producers Advance

Higher crude prices boosted energy stocks across Europe, with the STOXX Europe 600 Oil & Gas index rising 1.2%, making it one of the strongest-performing sectors on the broader STOXX 600.

Among individual companies, OMV (TG:OMV) and Repsol (TG:REP) gained around 1% and 2%, respectively.

TotalEnergies (EU:TTE), Maurel & Prom (EU:MAU), Eni (BIT:ENI) and Equinor (TG:DNQ) all advanced between 1% and 2.1%, while Shell (LSE:SHEL) rose 1.1% and BP (LSE:BP.) added 2.3%.

Strait of Hormuz Traffic Declines

The market reaction followed another weekend of military escalation between the United States and Iran.

Iran launched strikes against U.S. facilities across the Gulf on Sunday, while the country’s Revolutionary Guards said on Monday that American military bases in Kuwait and Bahrain had also been targeted.

The conflict has affected shipping activity through the Strait of Hormuz, a strategic passage that normally handles around one-fifth of global daily oil and liquefied natural gas supplies.

According to ship-tracking company Kpler, vessel movements through the strait fell to their lowest level in five weeks on Sunday, with only six ships completing the transit.

London equities traded slightly higher on Monday despite renewed geopolitical tensions in the Middle East, with gains among energy stocks helping offset broader investor caution after fresh U.S. military action against Iran.

The FTSE 100 rose 0.07%, while Germany’s DAX fell 0.16% and France’s CAC 40 slipped 0.20%. Sterling also weakened against the U.S. dollar, with GBP/USD down 0.16% at 1.3386 by 03:25 ET (07:25 GMT).

Oil Prices Jump After Fresh U.S. Strikes

Crude prices climbed sharply after the U.S. launched another series of strikes against Iranian targets on Sunday.

U.S. Central Command said the operation was designed to further reduce Iran’s ability to threaten commercial shipping passing through the Strait of Hormuz, a vital route for global energy supplies.

Speaking to NBC’s Meet the Press, U.S. President Donald Trump said the waterway remained operational.

“It’s open,” he said, adding, “We bombed the hell out of them last night.”

His comments contrasted with those from Iran’s Persian Gulf Strait Authority (PGSA), which said the strait remained closed while a security review was carried out and that shipping would only resume once “stability and calm are restored.”

The latest military action followed strikes on Saturday, when CENTCOM said approximately 140 Iranian military targets were hit, bringing the total to more than 300 targets over three consecutive nights after Iranian forces allegedly attacked the Cyprus-flagged container vessel M/V GFS Galaxy.

Iranian Foreign Minister Abbas Araghchi wrote on X on 11 July: “Iran has so far kept its word, unlike the so-called U.S. Treasury Secretary who is violating Para 9 of the MoU,” adding, “that violation follows other violations and missteps by the United States” and that “there can only be mutual compliance.”

Meanwhile, CBS News reported that Iranian officials had privately told advisers to President Trump that the attack on commercial shipping had been carried out by a rogue faction and was not intended to derail negotiations. According to the report, discussions involving Vice President JD Vance, Jared Kushner and Steve Witkoff continued in Oman over the weekend.

Energy Markets React

Brent crude climbed 3.8% to $78.86 a barrel, while U.S. West Texas Intermediate crude gained 3.7% to $74.06 as traders priced in the possibility of supply disruptions in the Gulf.

Gold moved lower despite the geopolitical uncertainty, with gold futures falling 1.2% to $4,065.02 an ounce and spot gold declining 1.6% to $4,056.82.

UK Corporate Highlights

Among UK-listed companies, PageGroup (LSE:PAGE) reported stronger-than-expected second-quarter gross profit, with growth in the Americas and Asia-Pacific helping offset weaker conditions across Europe and the UK.

ME Group International (LSE:MEGP) reaffirmed its full-year profit guidance after saying trading improved following a slowdown in April that was linked to weaker consumer confidence in France.

Plus500 (LSE:PLUS) also maintained its full-year outlook after reporting its strongest first-half revenue performance in three years, supported by increased customer trading activity and continued expansion in the U.S. market.

U.S. equity futures traded close to unchanged on Friday as investors adopted a cautious approach following Thursday’s rally, with attention shifting toward the upcoming earnings season and key inflation data due next week.

With limited economic releases scheduled before the weekend, markets appeared content to consolidate recent gains while awaiting fresh guidance from corporate America.

Major Companies Prepare to Report

Several blue-chip companies are set to launch the second-quarter earnings season, including Bank of America (NYSE:BAC), Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), Johnson & Johnson (NYSE:JNJ), UnitedHealth (NYSE:UNH) and Netflix (NASDAQ:NFLX).

According to Daniela Hathorn of Capital.com, investors will focus not only on earnings but also on management commentary.

“Investors will be looking for confirmation that AI-related investment continues to translate into robust earnings growth and resilient margins, particularly among the large technology companies that have driven much of this year’s rally,” she said.

She added, “With valuations still elevated, earnings guidance could prove just as important as the headline results themselves.”

Tech Shares Continue to Lead

Thursday’s advance was driven primarily by technology companies, with the Nasdaq outperforming the broader market.

Strong interest surrounding SK Hynix’s (USOTC:HXSCL) U.S. listing and Micron Technology’s (NASDAQ:MU) $3 billion semiconductor investment announcement helped reinforce optimism across the sector.

Oil Retreat Offers Additional Support

Energy prices moved lower despite ongoing geopolitical tensions in the Middle East, easing immediate concerns over inflation and supporting broader market sentiment.

The decline in crude prices weighed on energy stocks, while technology, computer hardware, semiconductor and gold-related shares outperformed.

Investors now turn their attention to next week’s earnings reports and inflation releases, both of which are expected to play a significant role in shaping expectations for Federal Reserve policy and the direction of equity markets.

European equities traded cautiously on Friday as investors weighed renewed military exchanges between the United States and Iran alongside lingering concerns over artificial intelligence valuations.

The UK’s FTSE 100 gained 0.1%, while France’s CAC 40 and Germany’s DAX hovered close to flat as market sentiment remained subdued.

Eurozone government bond yields were little changed after a sharp sell-off in the previous trading session.

Among individual stocks, Careium AB jumped after the Swedish healthcare technology company reported a 24% year-on-year increase in second-quarter net sales.

Vodafone (LSE:VOD) also advanced sharply after UAE telecommunications group E& confirmed plans to sell its entire holding in the British operator to Vega.

Budget carrier EasyJet (LSE:EZJ) rallied after reaching an agreement in principle on the key financial terms of a £5.7 billion takeover proposal from U.S. private equity firm Apollo Global Management.

Recruitment company Hays (LSE:HAS) was another strong performer after forecasting full-year operating profit at the upper end of analysts’ expectations.

U.S. equity futures were mixed on Friday as investors looked ahead to the start of second-quarter earnings season while continuing to assess geopolitical risks in the Middle East and strong momentum in Asian technology stocks.

“Steady earnings fundamentals continue to anchor index volatility, Q2 results will be key to confirm this,” Barclays strategist Emmanuel Cau wrote in a note.

“Q2 results will be crucial in reconnecting price action with fundamentals, determining whether markets can extend gains from here and affirming sector/factor leadership.”

Gold remained under pressure heading into the weekend, while crude oil held onto most of its recent gains amid ongoing uncertainty surrounding the conflict between the United States and Iran. Japanese markets also attracted attention after the government proposed measures to increase domestic pension fund investment, and SK Hynix (USOTC:HXSCL) completed one of the largest ADR offerings ever seen in the United States.

Pension Reform Boosts Japanese Markets

Japanese government bonds and the yen strengthened after Finance Minister Satsuki Katayama said the government intends to encourage large pension funds, including the $2 trillion Government Pension Investment Fund (GPIF), to increase exposure to domestic assets.

The initiative could redirect significant capital toward Japanese stocks and bonds while supporting the currency if overseas allocations are reduced. Investors are also awaiting the government’s “Honebuto” economic strategy, due on 21 July, which is expected to include investment plans for artificial intelligence, semiconductors and energy.

SK Hynix Draws Strong Investor Demand

SK Hynix (USOTC:HXSCL) priced its U.S. ADR offering at $149 per share, raising approximately $26.5 billion in one of the biggest semiconductor equity offerings on record.

The offer was priced at about a 3% premium to the previous closing price in Seoul, while Reuters reported that investor demand exceeded the number of shares available by more than seven times.

Asian Markets Outperform Europe

Asian equity markets posted strong gains, led by semiconductor shares. South Korea’s Kospi rose roughly 5%, supported by Samsung Electronics, while Japan’s Nikkei 225 also advanced.

European markets were more subdued. The STOXX 600 traded close to unchanged after Thursday’s AI-led rally as investors focused on renewed geopolitical risks and the potential impact on inflation and global trade.

In the United States, S&P 500 futures slipped 0.2%, while Dow Jones futures added 0.1%.

Oil Retains Weekly Gains

Oil prices remained higher, with Brent and WTI both heading for strong weekly gains despite easing from the week’s highs as concerns over supply disruptions through the Strait of Hormuz moderated.

Gold, silver and platinum all remained on course for weekly declines as investors reassessed the outlook for inflation and interest rates.

Delta to Set the Tone for Earnings Season

Attention now shifts to second-quarter corporate earnings.

Delta Air Lines (NYSE:DAL) is scheduled to report results later today, with Wall Street expecting adjusted earnings per share of $1.51 on revenue of $17.53 billion, including passenger revenue of $15.63 billion and cargo revenue of approximately $231.6 million.

The airline’s outlook will be closely watched for signs of consumer travel demand and the health of the broader economy.

European equity markets traded little changed on Friday as early optimism generated by a major U.S. technology listing faded, with investors instead focusing on escalating tensions between the United States and Iran that have reignited concerns over inflation and global trade.

The pan-European STOXX 600 was broadly unchanged in early trading after posting a modest rebound in the previous session, supported by gains in artificial intelligence-related stocks.

Germany’s DAX and France’s CAC 40 were also largely flat, while London’s FTSE 100 and Italy’s FTSE MIB each advanced around 0.3%.

Despite Friday’s stability, the STOXX 600 remained on course for a weekly decline of almost 2%, marking its weakest weekly performance since mid-April as investors reassessed the economic risks posed by the growing conflict in the Middle East.

Geopolitical Risks Return to the Forefront

Market sentiment weakened after reports that U.S. forces carried out airstrikes on 90 Iranian targets on Wednesday in an effort to reduce threats to international shipping.

Iran responded with strikes targeting U.S. assets in Kuwait, Bahrain and Qatar, significantly increasing concerns over maritime traffic through the Strait of Hormuz, one of the world’s most important energy transport routes.

The collapse of the fragile ceasefire agreed on 17 June pushed Brent crude back towards $77 per barrel, reversing the recent decline in oil prices and prompting investors to reassess expectations for inflation and central bank interest rate policy.

Technology Rally Loses Momentum

The geopolitical backdrop overshadowed what had initially been a positive session for technology stocks following the successful U.S. Nasdaq listing of South Korean semiconductor manufacturer SK Hynix (USOTC:HXSCL), which raised $26.5 billion in one of the largest share offerings on record.

Although the heavily oversubscribed flotation initially lifted semiconductor and AI-related shares that had recently come under pressure, the rally gradually lost momentum as investors returned their focus to macroeconomic risks and elevated valuations.

European semiconductor stocks moved lower, with Siltronic (TG:WAF) falling 2%, Soitec (EU:SOI) declining 2.8% and ASML (EU:ASML) easing 2%.

Corporate Movers

EasyJet (LSE:EZJ) surged 13% after agreeing in principle to a takeover approach from Apollo.

Vodafone (LSE:VOD) climbed 12% after French telecom entrepreneur Xavier Niel acquired e&’s stake in the company.

St. James’s Place (LSE:STJ) fell around 5% after reports that one of its partner advisory firms plans to leave the wealth manager.

FTSE 100 opens slightly down as EasyJet takeover developments and Hays’ trading update lead headlines, while Brent crude and gold edge lower.

Market Overview

The FTSE 100 opened marginally lower at 10,471.94, while the Euronext 100 gained 0.04 per cent and Germany’s DAX rose 0.06 per cent. Overnight, the Nasdaq closed higher at 26,206.89 and the S&P 500 finished at 7,543.64, both ending the previous session in positive territory. Market sentiment was supported as Middle East tensions eased, although investors continued to monitor inflation risks and energy markets following recent geopolitical developments.

In commodities, copper edged higher while gold, Brent crude and natural gas all traded lower. Bitcoin rose against sterling. Currency moves were modest, with the US dollar and euro strengthening slightly against sterling, while the Swiss franc and Japanese yen were little changed and the Australian dollar weakened.

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Market Numbers

FTSE 100: Down (-0.001%), 10,471.94
Euronext 100: Up (+0.04%), 1,913.47
DAX: Up (+0.06%), 25,133.38
NASDAQ: Up, 26,206.89
S&P 500: Up, 7,543.64

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In the Headlines

Takeover interest – easyJet (LSE:EZJ)
easyJet is reported to favour Apollo’s improved takeover proposal over a rival approach from Castlelake. The development could influence the next stage of the bidding process and remains a key focus for investors.

Trading update – Hays (LSE:HAS)
Recruitment group Hays has released its fourth-quarter trading update ahead of an investor briefing. The update provides investors with the latest view on trading conditions and recruitment demand before further guidance.

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Currencies (vs GBP)

USD: Up (+0.06%), $1.3414
CHF: Unchanged (+0.00%), Fr.1.0819
EUR: Up (+0.01%), €1.1732
JPY: Up (+0.02%), ¥217.786
AUD: Down (-0.01%), $1.9319
Bitcoin (BTC/GBP): Up, £47,627.47

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Commodities

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

UK equities traded higher on Friday as renewed diplomatic efforts between the United States and Iran helped calm concerns over tensions in the Middle East. Investors also continued to monitor the takeover battle for easyJet (LSE:EZJ), after Apollo Global (NYSE:APO) emerged with a higher £5.7 billion proposal.

The FTSE 100 gained 0.23% by 03:25 ET (07:25 GMT). Elsewhere in Europe, Germany’s DAX advanced 0.24%, while France’s CAC 40 rose 0.21%. Sterling strengthened 0.14% against the U.S. dollar to trade at $1.3426.

U.S. President Donald Trump said Washington would respond to Iranian-linked attacks on commercial shipping in the Strait of Hormuz while reiterating that Iran “can never possess a nuclear weapon.”

Although the latest U.S. military action drew domestic criticism and heightened regional tensions, officials stressed that diplomatic engagement with Tehran remained a priority.

Regional mediators, including Qatar, Saudi Arabia, Pakistan, Turkey and Egypt, subsequently intensified efforts to revive U.S.-Iran nuclear negotiations. At the same time, the United States and Israel reaffirmed their close security partnership.

Iran denied allegations relating to activity in the Strait of Hormuz and maintained that its nuclear programme is intended solely for peaceful purposes, highlighting the continuing divide between military developments and diplomatic negotiations.

The country also concluded several days of state funeral ceremonies for former Supreme Leader Ayatollah Ali Khamenei, whose burial at the Imam Reza shrine in Mashhad brought the official mourning period to a close amid ongoing regional uncertainty.

In UK politics, Andy Burnham secured 322 nominations from Labour MPs on Thursday, leaving him just one nomination short of the 323 required to prevent a challenger from entering the leadership contest.

The former Greater Manchester mayor is widely expected to be confirmed as Labour leader next week before taking office as prime minister on 20 July.

Commodity markets moved lower, with Brent crude falling 0.84% to $75.66 per barrel and WTI crude down 0.78% at $71.52. Gold futures declined 0.44% to $4,122.40 an ounce, while spot gold slipped 0.25% to $4,113.65.

UK Market Round-up

Apollo Global overtook Castlelake in the contest for easyJet (LSE:EZJ), agreeing in principle to a £5.7 billion takeover proposal that values the airline at £7.15 per share.

MJ Gleeson (LSE:GLE) said full-year profit is expected to meet market expectations but cautioned that geopolitical uncertainty and potential changes to UK government policy could affect its outlook for fiscal 2026.

Vodafone (LSE:VOD) remained in focus after UAE telecoms group e& agreed to sell its 16.3% holding in the company to Vega, the investment vehicle backed by Xavier Niel, in a transaction worth $5.95 billion at a 13% premium.

Hays (LSE:HAS) said it expects fiscal 2026 operating profit to come in at the upper end of market forecasts, as cost-saving initiatives continue to offset subdued recruitment activity.

Semiconductor Stocks Support Positive Start

U.S. equity futures traded higher ahead of Thursday’s opening bell, pointing to a stronger start after the major indexes delivered mixed performances in the previous session.

Technology shares looked set to lead the advance, with semiconductor companies providing fresh momentum following Wednesday’s late recovery in the Nasdaq.

Nasdaq 100 futures rose about 1%, helped by strong pre-market gains in Micron Technology (NASDAQ:MU) and SanDisk (NASDAQ:SNDK).

Middle East Developments Remain in Focus

Investors continued to monitor geopolitical developments as tensions between the United States and Iran remained elevated.

U.S. Central Command said American forces carried out another round of strikes against roughly 90 military targets in Iran, aiming to weaken Tehran’s ability to threaten commercial shipping in the Strait of Hormuz.

“This is in retribution for yesterday’s bombing of ships by Iran. If it happens again, it will get much worse!” President Donald Trump wrote on Truth Social.

Iran reportedly retaliated with attacks targeting Bahrain, Kuwait and Qatar.

Speaking aboard Air Force One, Trump said Iran wanted to “make a deal so badly,” while adding that he was unsure whether the country was “worthy of making a deal.”

Markets Recover After Early Selloff

Wednesday’s trading session began with broad losses before equities recovered during the afternoon.

The Dow Jones Industrial Average ended down 576.76 points, or 1.1%, at 52,348.39, while the S&P 500 slipped 0.3% to 7,482.71. The Nasdaq Composite outperformed, rising 0.2% to close at 25,870.65.

The initial decline followed Trump’s announcement that the U.S.-Iran ceasefire was “over.”

“As far as I’m concerned, it’s over,” Trump told reporters during the NATO summit in Ankara, calling negotiations with Iran a “waste of time.”

He later said the United States would “very probably” strike Iran “hard again tonight.”

Oil and Interest Rate Concerns Shape Trading

Crude oil futures initially surged by more than 5%, raising fresh concerns that higher energy prices could keep inflation elevated and delay interest-rate cuts.

As oil retreated from its intraday highs, equity markets recovered much of their earlier losses.

Housing, airline, banking and commercial real estate stocks finished lower, while energy shares outperformed alongside stronger crude prices. Semiconductor and computer hardware companies also posted solid gains, helping technology stocks outperform.