Category: Market Summary

  • European Defense Stocks Rally as NATO Warns Industry Is Struggling to Meet Demand

    European Defense Stocks Rally as NATO Warns Industry Is Struggling to Meet Demand

    European defense shares posted strong gains on Monday after NATO Secretary-General Mark Rutte said the alliance’s growing military spending is stretching the capacity of defense manufacturers ahead of this week’s NATO summit in Ankara, Turkey.

    Italy’s Fincantieri SpA (BIT:FCT) led the sector higher, jumping 12.84% to €12.30 by 08:30 GMT. Other major defense names also advanced, including Leonardo SpA (BIT:LDO), Saab AB (TG:SDV1), Indra Sistemas (TG:IDA), Hensoldt AG (TG:HAG), Rheinmetall AG (TG:RHM), Thales (EU:HO), Dassault Aviation SA (EU:AM) and Safran SA (EU:SAF).

    NATO Shifts Focus from Commitments to Implementation

    Speaking to The Wall Street Journal ahead of the summit, Rutte said NATO has entered a new phase in its defense spending programme.

    “A year ago was all about promises” of additional military spending, he said. This year, “it’s about delivery,” reflecting the alliance’s focus on turning commitments into operational capability.

    According to NATO, military expenditure by member states excluding the United States rose 20% last year compared with 2024, reaching $574 billion. Data from the Stockholm International Peace Research Institute showed Germany increased defense spending by 24% to $114 billion, with Berlin aiming to raise that figure to around $180 billion by 2029.

    Production Capacity Becoming a Constraint

    Rutte warned that the rapid increase in defense orders is putting significant pressure on manufacturers, noting that around $300 billion worth of weapons has already been ordered from U.S. suppliers.

    “We are basically reaching the absorption-capacity level,” he said, identifying limited industrial production and difficulties recruiting and training military personnel as the two principal constraints.

    U.S. Ambassador to NATO Matthew Whitaker also argued that Europe’s defense industry would benefit from greater consolidation, saying higher military budgets must result in additional equipment rather than higher costs.

    Summit Expected to Generate New Defense Contracts

    TD Cowen said this week’s NATO summit will focus on military spending, industrial production capacity and continued support for Ukraine, with U.S. President Donald Trump expected to press allies on burden-sharing and implementation of NATO’s target of spending 5% of GDP on defense.

    The broker expects fresh investment announcements and new defense contracts linked to the summit, developments that could further support U.S. foreign military sales, which are already running at record levels.

    TD Cowen also identified drones and counter-drone technologies as the most attractive area for future defense spending, citing a lasting shift in modern warfare and the growing need to protect critical infrastructure.

    The NATO summit takes place on 7-8 July in Ankara, alongside a dedicated defense industry forum where officials are expected to announce new contracts, preliminary agreements and joint-production initiatives.

  • FTSE 100 Opens Higher as Investors Monitor Ukraine, Iran and OPEC+ Supply Decisions

    FTSE 100 Opens Higher as Investors Monitor Ukraine, Iran and OPEC+ Supply Decisions

    UK equities traded modestly higher on Monday as investors assessed geopolitical developments in Ukraine and Iran alongside the latest OPEC+ production decision and a busy domestic news agenda. Market participants also kept a close watch on political developments ahead of a key NATO summit and fresh UK economic data.

    As of 07:15 GMT, the FTSE 100 was up 0.26%. Germany’s DAX slipped 0.02%, while France’s CAC 40 gained 0.30%. Sterling eased 0.11% against the U.S. dollar to $1.3338.

    Ukraine and Iran Remain in Focus

    Russian President Vladimir Putin and U.S. President Donald Trump held a telephone conversation lasting almost 90 minutes on Sunday, according to Russia’s foreign ministry, marking their fourth discussion this year.

    The ministry said Trump “reaffirmed his readiness to facilitate the earliest possible cessation of hostilities” in Ukraine and described the talks as “businesslike and highly constructive.”

    Separately, Ukrainian President Volodymyr Zelensky said he had a “very good call” with Trump on Saturday, adding, “There is a real prospect to put an end to this war, and America’s resolve is decisive.” The discussions came ahead of a NATO summit opening in Turkey on Tuesday, which Trump is expected to attend.

    Meanwhile, Iran began a 12-hour funeral procession in Tehran for the country’s late Supreme Leader, Ayatollah Ali Khamenei, marking the third day of national mourning.

    His successor, Mojtaba Khamenei, has not appeared publicly since the 28 February airstrike that killed his father. Iranian officials have said he was injured in the attack and has communicated only through written statements. Public life across Tehran has been heavily disrupted during the mourning period, which is scheduled to conclude with Ayatollah Khamenei’s burial in Mashhad on Thursday.

    UK Political and Oil Market Developments

    In UK politics, Makerfield MP Andy Burnham, widely viewed as a potential successor to Prime Minister Keir Starmer, ruled out calling an early general election if he were to become prime minister.

    “No. As I said in my speech on Monday, I’m going to work to the 2024 manifesto,” Burnham said in response to a question on Reddit. He also indicated he would seek to move Labour towards electoral reform in its next manifesto.

    Conservative leader Kemi Badenoch criticised Burnham’s decision to answer questions on Reddit rather than holding a traditional media briefing, urging him to “face a proper press conference.”

    Elsewhere, seven OPEC+ members—Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman—agreed to increase combined oil production by 188,000 barrels per day from August, marking the fifth consecutive monthly output increase.

    Brent crude futures for September delivery fell 0.42% to $71.82 a barrel, while U.S. WTI crude for August delivery slipped 0.32% to $68.47. Gold futures for August rose 0.91% to $4,162.51 an ounce, although spot gold declined 0.60% to $4,150.56.

    UK Corporate Round-Up

    easyJet (LSE:EZJ) agreed in principle to support a proposed £5.5 billion takeover by U.S. investment firm Castlelake at £6.90 per share, a transaction that could significantly reshape the European airline sector.

    Ocado (LSE:OCDO) confirmed that founder Tim Steiner will remain chief executive until the start of 2028 before moving into a Founder role through 2029 as part of a planned leadership succession.

    ITV (LSE:ITV) agreed to sell its Media and Entertainment division to Sky in a deal worth up to £1.6 billion, allowing ITV Studios to become a standalone content production business while adding Love Productions to its portfolio.

    Separately, the Society of Motor Manufacturers and Traders reported that UK new car registrations increased by around 11% year on year in June, with battery electric vehicles accounting for 30% of all new registrations.

  • Market Open: easyJet Takeover Terms, ITV Sky Deal

    Market Open: easyJet Takeover Terms, ITV Sky Deal

    Markets opened steady as easyJet backed Castlelake’s takeover terms and ITV agreed a £1.6bn Sky deal, while Brent crude edged lower.

    Market Overview

    UK markets opened little changed, with the FTSE 100 broadly flat, while the Euronext 100 and Germany’s DAX edged higher. Investors continued to monitor developments surrounding Ukraine and Iran alongside expectations for upcoming Federal Reserve minutes and comments from central bank policymakers. European equities remained close to record levels despite a cautious tone. Oil prices softened after OPEC+ agreed to raise output targets. US markets were closed on Friday for the Independence Day holiday.

    In commodities, copper strengthened while gold, Brent crude and natural gas all edged lower. Bitcoin fell against sterling. Currency markets were broadly steady, with sterling little changed against the US dollar, euro, Swiss franc, Japanese yen and Australian dollar.


    Market Numbers

    FTSE 100: Up (0.00%), 10,679.38

    Euronext 100: Up (0.03%), 1,939.03

    DAX: Up (0.13%), 25,811.91


    In the Headlines

    Takeover Terms – easyJet (LSE:EZJ)

    easyJet has agreed in principle to support a recommended £6.90-per-share takeover proposal from Castlelake, subject to due diligence and final documentation. The agreement represents a significant step towards a potential acquisition, although no firm offer has yet been made.

    Strategic Restructure – ITV (LSE:ITV)

    ITV has agreed to sell its Media business to Sky in a transaction valued at up to £1.6 billion, allowing ITV Studios to operate as a standalone global content company. The deal reshapes the UK broadcasting landscape while enabling ITV to focus on content production and return capital to shareholders.


    Currencies (vs GBP)

    USD: Unchanged (0.00%), $1.3353

    CHF: Unchanged (0.00%), Fr.1.0733

    EUR: Unchanged (0.00%), €1.1675

    JPY: Unchanged (0.00%), ¥215.5955

    AUD: Up (0.02%), $1.9249

    Bitcoin (BTC/GBP): Down, £47,218.88


    Commodities

    Copper: Up

    Gold: Down

    Brent Crude: Down

    Natural Gas: Down

  • Market Open: Craneware FY26 Warning, Strategic Minerals Redmoor Approval

    Market Open: Craneware FY26 Warning, Strategic Minerals Redmoor Approval

    FTSE 100 opens steady as European markets rise. Craneware cuts FY26 outlook, Strategic Minerals advances Redmoor, while Brent crude edges higher.

    Market Overview

    UK markets opened mixed, with the FTSE 100 edging slightly lower to 10,652.81, while the Euronext 100 gained 0.02 per cent to 1,921.52 and Germany’s DAX advanced 0.75 per cent to 25,772.81. Overnight, the Nasdaq closed lower at 25,832.67, while the S&P 500 finished broadly unchanged at 7,483.24. Market sentiment was supported by weaker US payroll data and easing geopolitical concerns following progress in Iran-related discussions, although investors remained cautious ahead of further economic data.

    Commodity markets were mixed, with copper and Brent crude higher while gold and natural gas eased. Bitcoin rose slightly against sterling. Currency markets were largely flat versus the pound, reflecting limited movement as investors weighed improving supply expectations in the oil market alongside a softer US economic backdrop.


    Market Numbers

    FTSE 100: Down (-0.001%), 10,652.81
    Euronext 100: Up (+0.02%), 1,921.52
    DAX: Up (+0.75%), 25,772.81
    NASDAQ: Down, 25,832.67
    S&P 500: Up, 7,483.24


    In the Headlines

    FY26 Outlook Warning – Craneware (LSE:CRW)

    Craneware warned that its financial performance for FY26 will fall below market expectations after delays in recognising revenue from eligible 340B drug activity and the deferral of several enterprise contracts. The company said customer demand remains strong and described the setback as a timing issue rather than a deterioration in underlying business conditions.

    Cornwall Drilling Approval – Strategic Minerals (LSE:SML)

    Strategic Minerals has received approval for a major drilling programme at the Redmoor tungsten, tin and copper project in Cornwall. The campaign is intended to expand the project’s resource base and marks an important step in advancing Redmoor towards future development.


    Currencies (vs GBP)

    USD: Unchanged (0.00%), $1.33381
    CHF: Unchanged (0.00%), Fr.1.07297
    EUR: Unchanged (0.00%), €1.1677
    JPY: Unchanged (0.00%), ¥215.355
    AUD: Unchanged (0.00%), $1.92887
    Bitcoin (BTC/GBP): Up, £46,180.40


    Commodities

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

  • U.S. holiday leaves Wall Street quiet as weaker jobs data lifts global markets: Dow Jones, S&P, Nasdaq, Futures

    U.S. holiday leaves Wall Street quiet as weaker jobs data lifts global markets: Dow Jones, S&P, Nasdaq, Futures

    U.S. financial markets will remain closed on Friday for the Independence Day holiday, but futures pointed to a firmer start when trading resumes. Softer-than-expected U.S. employment figures reduced expectations of an imminent Federal Reserve rate increase, helping Asian equities recover after recent losses. Investors also monitored gains among Tesla’s (NASDAQ:TSLA) Chinese suppliers and stronger-than-forecast activity in China’s services sector.

    Softer payrolls ease pressure on the Federal Reserve

    Wall Street futures strengthened after June’s labour market report suggested the U.S. economy is cooling, reducing expectations that policymakers will tighten monetary policy later this month.

    At 03:11 ET (07:11 GMT), Dow Jones futures were up 148 points, or 0.3%, S&P 500 futures had gained 30 points, or 0.4%, while Nasdaq 100 futures advanced 278 points, or 0.9%.

    The major U.S. indices ended Thursday’s shortened trading week with mixed performances. Treasury markets were relatively stable, with benchmark 10-year yields holding steady while two-year yields edged slightly lower.

    The latest Labour Department figures showed that job creation slowed more than economists had expected in June. Although the unemployment rate fell to a one-year low of 4.2%, investors interpreted the report as reducing the likelihood of another immediate interest rate increase. Earlier comments from Federal Reserve Chair Kevin Warsh, who suggested inflation risks had eased, reinforced that view.

    Deutsche Bank analysts noted that market-implied odds of a July rate hike dropped from 34% on Tuesday to just 18% by Thursday’s close.

    “Moreover, just 30 [basis points] of hikes are now priced in by the December meeting, the fewest since the Fed meeting a couple of weeks ago when the dot plot surprised in a hawkish direction,” they added.

    Technology stocks lead Asian rebound

    Asian stock markets posted broad gains as investors returned to technology shares following heavy selling earlier in the week.

    Semiconductor companies led the advance after concerns over artificial intelligence infrastructure spending had previously triggered widespread profit-taking.

    Samsung Electronics was among the session’s strongest performers after reports that Anthropic, the developer behind Claude Code, is considering developing its own AI processor with the South Korean chipmaker.

    The positive news helped South Korea’s KOSPI recover after two consecutive declines, while Japan’s Nikkei 225 and Singapore’s STI also closed higher.

    Chinese Tesla suppliers jump after delivery surprise

    Shares in several Chinese suppliers to Tesla (NASDAQ:TSLA) rose sharply after the electric vehicle manufacturer reported stronger-than-expected second-quarter deliveries, improving confidence that demand may be stabilising.

    Auto component manufacturers Ningbo Xusheng, Ningbo Tuopu and Zhejiang Sanhua all gained between 5% and 9%.

    Tesla delivered a record 480,126 vehicles during the quarter, supported by robust European demand and modest sales growth in China.

    The launch of lower-priced Model 3 and Model Y variants, together with the refreshed Model Y, helped maintain sales momentum and reinforced China’s importance as both a manufacturing base and a major end market for Tesla.

    China’s services economy remains resilient

    China’s services sector expanded faster than expected in June, according to the latest private-sector survey.

    The RatingDog Services PMI eased slightly to 54.1 from 54.4 in May but remained comfortably ahead of market expectations of 53.0.

    With the index remaining above the 50-point threshold since January 2023, the survey continued to point to sustained expansion across the sector.

    Demand strengthened both domestically and internationally, while exports of services grew at their fastest pace since October 2024.

    Businesses also increased selling prices for the first time in four months as higher input costs, linked partly to supply disruptions in the Middle East, filtered through to customers.

    Hormuz transit fees remain under consideration

    Bloomberg News reported that some European policymakers are increasingly accepting that commercial vessels may eventually have to pay transit fees to Iran and Oman to pass through the Strait of Hormuz.

    People familiar with the discussions said some Gulf Arab officials also believe a service charge is likely to emerge, although no government has formally adopted that position.

    Questions remain over both the size of any future fees and the implications such charges could have for international maritime law.

    The Strait of Hormuz has remained at the centre of geopolitical tensions since Iran effectively closed the shipping route following the joint U.S.-Israeli military operation in late February. Although oil prices initially surged, they have since retreated to around pre-conflict levels after the United States and Iran reached an interim peace agreement.

  • European stocks hit fresh highs as weaker U.S. jobs data lifts sentiment: DAX, CAC, FTSE100

    European stocks hit fresh highs as weaker U.S. jobs data lifts sentiment: DAX, CAC, FTSE100

    European equity markets extended their record-setting advance on Thursday after weaker U.S. labour market data eased concerns over further near-term Federal Reserve interest rate increases, boosting investor confidence across the region.

    The pan-European STOXX 600 gained 0.5% in early trading, reaching another all-time high after also finishing at a record level in the previous session.

    Global risk appetite improved following a sharp slowdown in U.S. job creation. The softer employment figures helped calm concerns that sustained monetary tightening in the United States could further weigh on economic growth across Europe.

    A less aggressive Federal Reserve outlook is viewed as supportive for European assets because it reduces pressure on global borrowing costs, limits capital flows toward higher-yielding U.S. assets and gives the European Central Bank greater flexibility in managing its own monetary policy.

    Before the employment figures were released, traders had assigned more than a 60% probability to another Fed rate increase at the September meeting, according to CME FedWatch data. Those expectations had strengthened after recent comments from newly appointed Federal Reserve Chair Kevin Warsh. Following the payroll report, however, markets shifted their outlook, increasingly expecting policymakers to leave rates unchanged until at least October.

    ECB comments add further support

    Investor sentiment also benefited from remarks delivered during the European Central Bank’s annual forum in Sintra, Portugal.

    ECB President Christine Lagarde said that risks to euro area inflation and economic growth are becoming “more broadly balanced,” providing reassurance after last month’s 25-basis-point interest rate increase.

    The comments reinforced expectations that the ECB can continue managing its own policy path without being forced to closely mirror future Federal Reserve decisions.

    European equities head for strongest week in months

    The STOXX 600 remained on track to record its strongest weekly performance in almost two months.

    Market sentiment was also strengthened by further progress in negotiations between the United States and Iran.

    The improving geopolitical backdrop contributed to oil prices retreating toward pre-conflict levels while shipping activity continued to normalise, easing inflation pressures on European supply chains.

    Across the region, Germany’s DAX advanced 0.9% to another record high, France’s CAC 40 rose 0.3%, Italy’s FTSE MIB added 0.5%, and London’s commodity-focused FTSE 100 gained 0.3%.

    Among individual companies, Pirelli (BIT:PIRC) climbed 2% following reports that Czech investors are interested in acquiring part of Sinochem’s stake, while Auto1 Group (TG:AG1) gained 2% after J.P. Morgan added the shares to its positive catalyst watch list.

  • FTSE 100 advances as weak U.S. jobs data boosts rate-cut hopes and Iran talks remain on hold

    FTSE 100 advances as weak U.S. jobs data boosts rate-cut hopes and Iran talks remain on hold

    UK equities moved higher on Friday after weaker-than-expected U.S. labour market data reinforced expectations that the Federal Reserve could take a less aggressive approach to interest rates. With U.S. markets closed for the Independence Day holiday, lighter trading volumes were also expected to increase volatility during the European afternoon.

    The FTSE 100 gained 0.29% by 03:23 ET (07:23 GMT). Germany’s DAX rose 0.75%, while France’s CAC 40 added 0.30%. Sterling strengthened 0.16% against the U.S. dollar to $1.3367. U.S. exchanges remained closed for the holiday, leaving European markets with reduced liquidity.

    The U.S. economy created 57,000 nonfarm payroll jobs in June, well below economists’ expectations of 113,000. Employment figures for April and May were also revised lower, reinforcing signs of a cooling labour market.

    Although the unemployment rate edged down to 4.2%, the decline was largely attributed to lower labour force participation rather than stronger hiring. Meanwhile, wage growth matched market forecasts.

    Negotiations between the United States and Iran have been temporarily suspended ahead of the state funeral of former Supreme Leader Ayatollah Ali Khamenei, whose body arrived at Tehran’s Grand Mosalla complex early on Friday.

    Official ceremonies are due to run from 4 July through 9 July, with Iranian officials expecting between 15 million and 20 million mourners to attend.

    Mediators from Qatar and Pakistan said discussions would resume “at the earliest possible time” once the commemorations have concluded. Iran’s Revolutionary Guard leadership also warned the U.S. and Israel against carrying out military action during the funeral procession, while Washington confirmed that a second Marine unit of more than 2,000 personnel has been deployed to the region.

    Shipping activity through the Strait of Hormuz continued to recover, reaching at least 258 vessel movements last week compared with 138 the previous week. However, traffic remains well below pre-conflict levels of around 130 ships per day.

    Prime minister-in-waiting Andy Burnham told LBC’s Andrew Marr that he would increase business rates on large out-of-town warehouses to help finance a 20% reduction in business rates for high street retailers.

    “I believe there is a case for higher business rates on warehouses,” he said, adding that he remained committed to Labour’s 2024 manifesto pledges on income tax, VAT and national insurance. Burnham also declined to identify his preferred chancellor before his expected confirmation on 20 July.

    In commodity markets, Brent crude rose 0.32% to $72.03 per barrel, while WTI crude gained 0.10% to $68.76. Gold prices climbed sharply as the weaker dollar boosted demand, with gold futures rising 1.39% to $4,183.65 an ounce and spot gold advancing 1.13% to $4,170.36.

  • U.S. payrolls in focus as futures slip, oil eases and chip stocks extend losses: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S. payrolls in focus as futures slip, oil eases and chip stocks extend losses: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S. stock futures traded lower on Thursday as investors awaited the release of the June non-farm payrolls report, a key economic indicator that could shape expectations for Federal Reserve policy. Falling oil prices and renewed weakness in semiconductor shares also weighed on market sentiment during the final trading session of the holiday-shortened week.

    Wall Street futures retreat ahead of key data

    As of 07:13 GMT, Dow Jones futures were down 95 points, or 0.2%, while S&P 500 futures fell 22 points, or 0.3%. Nasdaq 100 futures underperformed, dropping 250 points, or 0.8%.

    The previous session saw U.S. markets finish lower after semiconductor stocks came under renewed pressure. Reports that Meta Platforms is exploring ways to commercialise excess AI computing capacity added to concerns that demand for new chips could moderate.

    Federal Reserve Chair Kevin Warsh acknowledged that inflation risks have eased but maintained that it was too early to provide guidance on future interest rate decisions. Softer-than-expected private employment and manufacturing figures also prompted investors to reduce expectations of a near-term rate increase.

    Labour market figures could reshape Fed expectations

    The June non-farm payrolls report is expected to show that the U.S. economy added 114,000 jobs, down from 172,000 in May, while the unemployment rate is forecast to remain at 4.3%.

    Recent payroll reports have consistently exceeded expectations, reinforcing confidence in the labour market. However, weaker private-sector employment data released earlier this week has raised doubts about whether the Federal Reserve will need to tighten monetary policy further this year.

    Crude prices decline as diplomacy continues

    Oil prices continued to move lower after officials reported constructive progress in indirect negotiations between the United States and Iran.

    Although no agreement has yet been reached, comments from Qatar, President Donald Trump and Vice President JD Vance suggested discussions remain active, easing concerns over supply disruptions through the Strait of Hormuz.

    According to Deutsche Bank, “[T]he newsflow helped to bring oil prices down and ease investor concern about inflation.”

    Semiconductor sector under renewed pressure

    Technology shares across Asia weakened after reports suggested OpenAI had significantly improved the efficiency of its AI models, reducing demand for graphics processors, while Meta is evaluating a cloud platform offering spare AI computing capacity.

    The developments weighed on major chipmakers including Samsung Electronics, SK Hynix, Advantest, Tokyo Electron and Taiwan Semiconductor Manufacturing Co.

    U.S. set to introduce voluntary AI standards

    The Financial Times reported that the Trump administration may unveil voluntary guidelines for advanced artificial intelligence models as early as next week.

    The proposed framework would establish common benchmarks for evaluating frontier AI systems before launch, replacing the current case-by-case regulatory approach.

  • European stocks trade cautiously as central bank signals temper optimism: DAX, CAC, FTSE100

    European stocks trade cautiously as central bank signals temper optimism: DAX, CAC, FTSE100

    European equity markets were little changed on Thursday as investors weighed cautious comments from leading central bankers against regional economic data while awaiting the release of a closely watched U.S. employment report.

    The pan-European STOXX 600 hovered around 638.66 points in early trading after ending the previous session at its third-highest closing level on record. The benchmark gained more than 10% over the previous quarter.

    Trading across the region was subdued. Germany’s DAX slipped 0.2%, France’s CAC 40 added 0.3%, London’s FTSE 100 eased 0.1%, while Italy’s FTSE MIB traded broadly flat.

    Europe avoids technology-led sell-off

    Although technology stocks came under renewed pressure across Asian markets overnight, European equities proved relatively resilient.

    The region’s lower exposure to the world’s largest technology companies compared with U.S. and Asian markets helped cushion European indices from the latest weakness in the sector.

    However, that defensive positioning also meant European markets captured less of the powerful artificial intelligence-driven rally that propelled global equities to record highs during the previous quarter.

    Sintra comments reinforce cautious rate outlook

    Investor sentiment remained restrained following comments from policymakers attending the European Central Bank’s annual forum in Sintra, Portugal.

    Federal Reserve officials and ECB President Christine Lagarde indicated that while inflation risks are becoming more balanced, it remains too early to expect a rapid shift towards more accommodative monetary policy.

    Lloyds Bank analysts said, “The ECB has retained a cautious approach as fears of ‘second-round’ effects linger.”

    They added, “The market is pricing for another 25-basis-point hike by September, then an extended hold through to the middle of next year, pushing back against a more inflationary scenario.”

    U.S. jobs report remains the key focus

    Attention has now turned to the U.S. non-farm payrolls report, which is expected to provide fresh direction for global financial markets.

    Economists forecast that around 100,000 jobs were created in June. Investors will scrutinise the figures for clues about the Federal Reserve’s next policy moves and whether expectations for up to two interest rate cuts by the end of the year remain justified.

    Sodexo leads gainers

    Among individual stocks, Sodexo (EU:SW) climbed more than 7% after reporting stronger-than-expected third-quarter revenue and raising its full-year sales guidance.

  • Market Open: Currys Profits, Wizz Air Passenger Growth

    Market Open: Currys Profits, Wizz Air Passenger Growth

    FTSE 100 opens little changed as Currys posts stronger profits and Wizz Air reports passenger growth while Brent crude prices ease.

    Market Overview

    UK markets opened little changed, with the FTSE 100 edging 0.01 per cent lower to 10,477.76, while the Euronext 100 also slipped 0.01 per cent. Germany’s DAX outperformed, rising 0.25 per cent to 25,102.51. Overnight, the Nasdaq closed lower at 26,040.03 and the S&P 500 finished at 7,483.23. Investors weighed dovish interest rate signals against cautious European sentiment, while lower oil prices reflected improving US-Iran talks and expectations of ample crude supply.

    Against sterling, the US dollar, euro and Australian dollar strengthened slightly, while the Swiss franc and Japanese yen weakened. Bitcoin advanced slightly. In commodities, copper and gold traded lower, Brent crude declined as easing geopolitical concerns weighed on prices, and natural gas also moved lower.


    Market Numbers

    FTSE 100: Down (-0.01%), 10,477.76
    Euronext 100: Down (-0.01%), 1,906.08
    DAX: Up (+0.25%), 25,102.51
    NASDAQ: Down, 26,040.03
    S&P 500: Down, 7,483.23


    In the Headlines

    Profit Growth – Currys (LSE:CURY)
    Currys reported higher annual profits and increased shareholder returns, supported by a strong performance from its Nordic operations. The results underline improving operational momentum and provide a positive signal for investors following a period of restructuring.

    Traffic Growth – Wizz Air (LSE:WIZZ)
    Wizz Air reported 27 per cent growth in June passenger numbers and confirmed the rollout of Starlink in-flight Wi-Fi across its fleet. The update highlights continued demand strength alongside investment in customer experience.


    Currencies (vs GBP)

    USD: Up (+0.01%), $1.3278
    CHF: Down (-0.03%), Fr.1.0745
    EUR: Up (+0.01%), €1.1671
    JPY: Down (-0.02%), ¥215.8345
    AUD: Up (+0.01%), $1.9270
    Bitcoin (BTC/GBP): Up, £45,086.66


    Commodities

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