Category: Market Summary

FTSE 100 edges higher while European markets fall. Jet2 reports record passenger growth, Vistry resets strategy and Brent crude rises.

Market Overview

The FTSE 100 opened marginally higher, while broader European markets weakened as the Euronext 100 slipped and Germany’s DAX fell more than one per cent. Overnight, US markets also closed lower, with the Nasdaq and S&P 500 both retreating as investors reacted to escalating tensions in the Gulf, monitored Federal Reserve policy expectations and assessed the impact of heightened geopolitical uncertainty on global risk sentiment.

Commodity markets reflected the increase in geopolitical risk, with Brent crude rising sharply while copper, gold and natural gas also moved higher. Bitcoin edged lower against sterling. Sterling strengthened slightly against the US dollar but weakened modestly against the Swiss franc, euro, Japanese yen and Australian dollar as investors sought traditional safe-haven assets amid concerns over energy supplies and shipping through the Strait of Hormuz.

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Market Numbers

FTSE 100: Up (0.001%), 10,666.09

Euronext 100: Down (-0.03%), 1,912.02

DAX: Down (-1.14%), 25,174.68

NASDAQ: Down, 25,818.69

S&P 500: Down, 7,503.85

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In the Headlines

Passenger growth – Jet2 (LSE:JET2)

Jet2 reported record passenger growth, launched a £250 million share buyback programme and expanded its presence at London Gatwick. The update highlights continued demand for leisure travel while reinforcing confidence in shareholder returns and long-term expansion plans.

Strategic reset – Vistry (LSE:VTY)

Vistry said first-half earnings will be affected as it prioritises cash generation through discounted sales, lower-risk developments and tighter capital allocation. The measures are intended to strengthen the balance sheet and support longer-term profitability despite near-term earnings pressure.

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Currencies (vs GBP)

USD: Up (0.02%), $1.3347

CHF: Down (-0.01%), Fr.1.0798

EUR: Down (-0.01%), €1.1706

JPY: Down (-0.02%), ¥216.7045

AUD: Down (-0.01%), $1.9281

Bitcoin (BTC/GBP): Down, £47,017.91

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Commodities

Copper: Up

Gold: Up

Brent Crude: Up

Natural Gas: Up

Tech stocks expected to lead declines at the open

U.S. equity futures traded lower on Tuesday, indicating a weaker start for Wall Street as investors looked set to trim exposure following Monday’s rally. Technology shares were expected to be the main drag after renewed concerns about artificial intelligence spending weighed on the semiconductor sector.

Samsung sell-off sparks broader chip weakness

Market sentiment deteriorated after South Korean chipmaker Samsung Electronics suffered a near 7% decline despite reporting a 19-fold increase in second-quarter operating profit.

The market reaction suggested investors remain cautious about whether the rapid pace of AI-related investment can be maintained.

“Although Samsung’s results were stellar, investors are getting nervous about the scale of money ploughing into AI and whether it’s a bubble waiting to burst,” said Dan Coatsworth, head of markets at AJ Bell.

Chip stocks also faced fresh pressure after Reuters reported that Chinese AI startup DeepSeek is working on its own artificial intelligence processor, potentially reducing future dependence on established chip suppliers.

Strong finish on Monday

Wall Street ended Monday’s session with broad-based gains following the Independence Day holiday.

The Nasdaq Composite rose 288.49 points, or 1.1%, to 26,121.16, while the S&P 500 gained 54.19 points, or 0.7%, to finish at 7,537.43. The Dow Jones Industrial Average added 155.84 points, or 0.3%, ending at a record closing high of 53,055.91.

Hardware stocks led the rally

Technology companies drove most of Monday’s advance, with computer hardware names posting the strongest gains.

The NYSE Arca Computer Hardware Index climbed 3.4%, helped by a 4.4% rise in Dell Technologies (NYSE:DELL) after President Donald Trump highlighted the company’s computers during an Oval Office event.

The NYSE Arca Networking Index gained 2.8%, while the Philadelphia Semiconductor Index advanced 2.2%.

Elsewhere, brokerage firms, banks and steel producers also moved higher, while pharmaceutical, telecommunications, housing and utility stocks lagged the broader market.

Services activity remains in expansion territory

Economic data showed the U.S. services sector continued to grow in June, although at a slightly slower pace.

The Institute for Supply Management reported its Services PMI eased to 54.0 from 54.5 in May, matching market expectations. Any reading above 50 signals continued expansion.

European markets delivered a mixed performance on Tuesday as investors took profits in technology stocks following recent gains, while renewed geopolitical concerns weighed on sentiment after reports that two commercial vessels were struck by Iranian missiles in the Strait of Hormuz, lifting both oil prices and government bond yields.

Germany’s industrial output beats expectations

Economic data released by Destatis showed Germany’s industrial production rose more strongly than forecast in May.

Industrial output increased 0.9% month-on-month, accelerating from April’s revised 0.2% gain. It marked the strongest monthly expansion since September.

Compared with the same month last year, industrial production was unchanged after declining 0.9% in April.

UK housing market returns to growth

In the UK, the latest Halifax survey compiled by S&P Global showed house prices rose for the first time in four months during June.

Average house prices increased 0.2% month-on-month, reversing the 0.2% decline recorded in May and exceeding economists’ expectations for a 0.1% increase.

European indices move in different directions

Germany’s DAX declined 0.5%, while France’s CAC 40 gained 0.3%. The UK’s FTSE 100 outperformed, rising 0.6%.

Technology shares remained under pressure as investors reassessed valuations following the sector’s strong AI-driven rally. Infineon Technologies (TG:IFX) dropped 5.4%, while ASML Holding (EU:ASML) lost 5.1%.

Company movers

Victrex (LSE:VCT) surged 19% after reaffirming its full-year guidance and reporting stronger-than-expected third-quarter revenue growth.

Halma (LSE:HLMA) slipped more than 1% after announcing the acquisition of French automated tissue sample management specialist Dreampath Diagnostics.

Shell (LSE:SHEL) advanced 3% after improving its second-quarter outlook for liquefied natural gas (LNG) production.

Keller Group (LSE:KLR) climbed 21% to a record high after upgrading its full-year earnings guidance.

US equity futures traded slightly lower on Tuesday after the Dow Jones Industrial Average reached another record high in the previous session, with investors assessing Samsung Electronics’ (USOTC:SSNHZ) blockbuster earnings, fresh remarks from Federal Reserve Governor Christopher Waller and renewed geopolitical tensions in the Middle East.

Markets pause after record Wall Street close

As of 03:02 ET (07:02 GMT), Dow Jones futures were little changed, while S&P 500 futures slipped 0.2% and Nasdaq 100 futures fell 0.8%.

Wall Street ended Monday on a positive note, with the Dow closing above the 53,000 mark for the first time. Technology stocks led the gains, particularly semiconductor names such as Advanced Micro Devices (NASDAQ:AMD) and Western Digital (NASDAQ:WDC). Broadcom (NASDAQ:AVGO) also advanced after announcing a custom chip partnership with Apple, helping the Philadelphia Semiconductor Index recover from last week’s losses.

Despite the strong headline performance, Deutsche Bank cautioned that market breadth remained weak.

“On paper the headlines were pretty decent,” analysts led by Jim Reid wrote. “But under the surface, things weren’t quite as robust as they seemed.”

Samsung delivers record profit but shares retreat

Samsung Electronics reported preliminary second-quarter operating profit of 89.4 trillion won, or approximately US$58 billion, nearly twenty times higher than the same period last year and above market expectations. Revenue is forecast to reach 171 trillion won.

Even so, Samsung’s shares dropped more than 6% in Seoul as investors questioned whether current valuations across the AI semiconductor sector have become too demanding.

Fed keeps inflation firmly in focus

Investors also weighed comments from Federal Reserve Governor Christopher Waller, who warned that inflation risks have become a greater concern than labour market weakness.

Waller said employment conditions have stabilised while inflation is “taking off,” reiterating that the Federal Reserve’s 2% inflation objective remains essential and will not be compromised.

Banks reportedly consider payments network acquisition

The Wall Street Journal reported that JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC) and PNC Financial Services (NYSE:PNC) have discussed acquiring one of Fiserv’s (NASDAQ:FISV) debit payment networks.

According to the report, ownership of a payments network could help banks reduce the impact of federal interchange fee restrictions, although discussions remain preliminary and no transaction is considered imminent.

Strait of Hormuz tensions intensify

Geopolitical concerns also remained elevated after Axios reported that Iran launched missiles at commercial vessels in the Strait of Hormuz, ending a week-long pause in attacks.

Separately, UK Maritime Trade Operations said a tanker near the Omani coast had been struck by an unidentified projectile, causing a fire. The incidents followed unsuccessful indirect talks between Washington and Tehran over security in the strategic waterway.

European equity markets were little changed on Tuesday as investors adopted a cautious stance towards technology stocks amid growing concerns over valuations linked to the artificial intelligence boom, while attention also turned to the NATO summit in Turkey for potential defence spending announcements.

The pan-European STOXX 600 index was broadly unchanged at 650.84 points by 07:13 GMT after ending the previous session just below record highs.

Technology stocks lead market declines

Technology shares were the weakest performers, with the sector falling 1.6% as semiconductor companies extended the global selloff triggered by concerns that the recent rally in AI-related stocks may have become overstretched.

Chip equipment manufacturer ASML (EU:ASML) and semiconductor producer Infineon (TG:IFX) both declined around 4%.

Siemens Energy (TG:SIE) also came under pressure, falling 5.5% after Barclays downgraded the stock to “underweight” from “equal-weight.”

The weakness followed a negative session in Asia, where Samsung Electronics (USOTC:SSNHZ) shares fell despite issuing strong earnings guidance, while Nasdaq futures were also trading nearly 1% lower, reflecting broader caution towards technology shares.

Defence companies remain in focus

In contrast, European defence stocks edged higher as investors monitored the NATO summit in Turkey, where member states were expected to announce new defence agreements in response to continued pressure from the United States to increase military spending across Europe.

The defence sector has been the strongest performer within the STOXX 600 so far this month.

Swedish defence manufacturer Saab (TG:SDV1) gained 5.3% after Morgan Stanley upgraded the stock to “overweight” from “underweight.”

Shell advances after guidance update

Elsewhere, Shell (LSE:SHEL) rose 2.2% after the energy group modestly increased its outlook for integrated gas production during the second quarter.

FTSE 100 opens steady as Shell upgrades second-quarter trading outlook, Capita addresses pension concerns and Brent crude edges lower.

Market Overview

The FTSE 100 opened broadly unchanged at 10,651.30, while the Euronext 100 edged 0.07 per cent higher and Germany’s DAX slipped 0.21 per cent at the open. Overnight, the Nasdaq closed higher at 26,121.16 and the S&P 500 gained to 7,537.43 as investors balanced improving UK housing data, the start of the NATO summit and expectations for upcoming Federal Reserve policy signals.

Commodity markets were mixed, with copper, gold, Brent crude and natural gas all trading lower at the open, while Bitcoin fell against sterling. Sterling was broadly steady against the major currencies as oil markets continued to weigh renewed Strait of Hormuz security concerns against Saudi price cuts and higher OPEC+ supply expectations.

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Market Numbers

FTSE 100: Down (-0.00%), 10,651.30

Euronext 100: Up (+0.07%), 1,935.63

DAX: Down (-0.21%), 25,764.94

NASDAQ: Up, 26,121.16

S&P 500: Up, 7,537.43

In the Headlines

Trading Update – Shell (LSE:SHEL)

Shell said second-quarter trading and refining performance is expected to be stronger than previously guided, signalling resilient earnings despite ongoing volatility across global energy markets. The update may support investor confidence ahead of the company’s full quarterly results.

Pension Administration – Capita (LSE:CPI)

Capita responded to concerns surrounding its administration of the Civil Service Pension Scheme, seeking to reassure stakeholders over service delivery and operational performance. The update is relevant as investors continue to monitor execution and contract quality across the outsourcing business.

Currencies (vs GBP)

USD: Down (-0.00%), $1.3394

CHF: Up (+0.00%), Fr.1.0784

EUR: Up (+0.00%), €1.1707

JPY: Up (+0.00%), ¥217.113

AUD: Down (-0.03%), $1.9259

Bitcoin (BTC/GBP): Down, £47,131.58

Commodities

Copper: Down

Gold: Down

Brent Crude: Down

Natural Gas: Down

The FTSE 100 traded higher on Tuesday, recovering from the previous session’s losses as investors welcomed an improvement in UK house prices while closely following developments at the NATO summit in Ankara and ongoing tensions in the Middle East.

The UK’s benchmark index gained 0.25% after Monday’s 0.3% decline. Elsewhere in Europe, Germany’s DAX slipped 0.22%, while France’s CAC 40 advanced 0.58%. Sterling edged 0.07% lower against the US dollar to 1.3379.

Fresh housing data showed the UK property market returned to growth in June, with the Lloyds House Price Index recording a 0.2% monthly increase. The average home price rose to £299,330 from £298,812 in May, while annual house price growth edged up to 0.6% from 0.5%. Northern Ireland remained the strongest-performing region, posting annual growth of 7.4%, whereas London recorded a 1.1% year-on-year decline, leaving the average property price at £534,831.

Commenting on the market, Amanda Bryden, Head of Mortgages at Lloyds, said:

“Mortgage rates have eased from their recent highs, offering some encouragement to those considering a move.”

She added:

“The outlook for house prices will depend largely on inflation continuing to ease and household confidence gradually improving.”

Meanwhile, geopolitical risks remained firmly in focus after a tanker caught fire in the Strait of Hormuz following a reported projectile strike, marking the latest disruption to commercial shipping since the outbreak of the conflict between the United States and Iran.

Diplomatic negotiations between Washington and Tehran remained suspended during the funeral period for Iran’s Supreme Leader, Ali Khamenei. Speaking at the White House before departing for Ankara, US President Donald Trump said the United States would prevail in the conflict “one way or the other,” adding that Washington could destroy Iran’s electricity infrastructure in the “small part of an afternoon.”

Attention also turned to the two-day NATO summit in Ankara, where alliance leaders are expected to discuss plans to implement last year’s commitment to increase defence spending from 2% to 3.5% of GDP by 2035. The meeting coincides with a major defence industry exhibition aimed at securing multi-billion-dollar procurement agreements, while President Trump is also expected to hold bilateral talks with the presidents of Ukraine and Syria.

In commodity markets, Brent crude climbed 1.28% to $72.91 a barrel and US West Texas Intermediate crude gained 1.20% to $69.37. Gold prices moved lower, with futures falling 0.63% to $4,141.31 an ounce and spot gold declining 0.84% to $4,129.42.

UK corporate highlights

Shell (LSE:SHEL) increased its guidance for second-quarter integrated gas production, although it cautioned that output will remain well below first-quarter levels following the shutdown of its Pearl GTL facility in Qatar after the Ras Laffan attack.

HSBC (LSE:HSBA) is scaling back higher-risk private credit lending in favour of lower-risk funds, according to a Financial Times report, as concerns grow over underwriting standards in the private credit market.

Investors Prepare for a Busy Week of Economic Events

U.S. stock index futures traded modestly higher on Monday as markets reopened after the Independence Day holiday, with investors looking ahead to a packed schedule of economic releases and comments from Federal Reserve officials.

As of 07:01 GMT, futures on the S&P 500 rose 0.3%, Nasdaq 100 futures gained 0.9%, while Dow Jones futures were little changed.

Attention has shifted to this week’s economic calendar after softer U.S. employment figures released last week reduced expectations of further near-term interest rate increases.

Services Sector Data Takes Centre Stage

The Institute for Supply Management will publish its June non-manufacturing PMI later on Monday, providing an important update on the health of the U.S. services sector.

Economists expect the index to edge down to 54.2 from 54.5 in May. A reading above 50 would continue to signal expansion in the sector, which accounts for the majority of U.S. economic activity.

The release follows last week’s weaker manufacturing survey, which pointed to slower industrial momentum despite continued investment linked to artificial intelligence.

OPEC+ Decision Pushes Oil Lower

Crude prices slipped after OPEC+ announced another increase in production targets beginning in August.

Brent crude traded around $71.86 a barrel, down approximately 0.4%, while U.S. West Texas Intermediate eased about 0.2% to $68.63.

The additional output, together with signs of improving shipping conditions through the Strait of Hormuz, has strengthened expectations of more comfortable global oil supplies during the coming months.

Gold Slips as Dollar Recovers

Gold prices weakened as the U.S. dollar rebounded from recent lows, reducing demand for the precious metal.

The recent rally in bullion had been supported by weaker U.S. jobs data, which encouraged investors to scale back expectations for additional Federal Reserve tightening.

Market participants continue to balance softer labour market trends against persistent inflation pressures when assessing the outlook for U.S. interest rates.

Foxconn Delivers Strong Quarterly Growth

Foxconn (USOTC:FXCOF), officially Hon Hai Precision Industry, reported second-quarter revenue of T$2.513 trillion, a 39.8% increase from a year earlier and well above market expectations.

The company credited continued investment in artificial intelligence infrastructure for driving demand across its cloud and networking businesses, while also reporting solid growth in consumer electronics. Management nevertheless warned that geopolitical uncertainty remains an important risk for the business.

Markets Pause Following Strong Rally

European equity markets traded little changed on Monday, remaining close to record highs after a strong performance last week. Investors adopted a more cautious approach ahead of several important central bank speeches and a series of economic releases expected to provide fresh direction for global markets.

The pan-European STOXX 600 remained close to its all-time high, supported by growing expectations that easing inflation and a softer U.S. labour market could reduce pressure for additional interest rate increases.

Germany’s DAX, France’s CAC 40 and the UK’s FTSE 100 all traded broadly flat in early dealings.

Falling Inflation Expectations Continue to Support Equities

European shares ended last week at record levels, with both the STOXX 600 and Euro Stoxx 50 reaching new highs. Germany’s DAX outperformed, helped by strong gains in major industrial companies, including Siemens, and a widening market rally that extended beyond technology stocks.

Investor sentiment also benefited from weaker-than-expected U.S. employment data, which strengthened expectations that the Federal Reserve could adopt a less aggressive approach to monetary tightening.

Lower oil prices have also eased concerns over energy-driven inflation after geopolitical tensions in the Middle East pushed crude prices higher earlier in the year.

Cyclical sectors such as industrials, manufacturing and financials attracted strong investor inflows throughout the previous week.

Attention Turns to Central Banks

The main focus for investors now shifts to Wednesday’s publication of the minutes from the Federal Reserve’s latest policy meeting.

Markets expect the minutes to retain a relatively hawkish tone, reflecting policymakers’ earlier projections that at least one further interest rate increase could still be delivered this year. However, those forecasts were made before the recent decline in crude oil prices, which may improve the inflation outlook.

Investors will also closely follow comments from Federal Reserve Governor Christopher Waller, European Central Bank President Christine Lagarde, and ECB Executive Board members Isabel Schnabel and Philip Lane for further guidance on the interest rate outlook.

Economic Data to Test Recovery Momentum

This week’s economic calendar will also provide fresh insight into the strength of the Eurozone economy.

Key releases include retail sales and producer price inflation for May across the euro area, together with Germany’s industrial production figures.

The data will help investors assess whether manufacturing activity is beginning to recover and whether consumer demand is showing signs of stabilisation.

easyJet Leads Individual Movers

Among individual companies, easyJet (LSE:EZJ) was one of the strongest performers, rising almost 10% after agreeing in principle to support Castlelake’s proposed takeover offer.