Category: Market Summary

The FTSE 100 moved higher on Thursday after early losses faded, with investor sentiment supported by dovish comments from leading central bankers at the ECB Forum on Central Banking in Sintra. The more supportive monetary policy outlook helped offset pressure from falling oil prices as optimism grew over progress in talks between the United States and Iran.

By 07:23 GMT, the FTSE 100 was up 0.14%, while Germany’s DAX gained 0.09% and France’s CAC 40 advanced 0.50%. Sterling strengthened 0.28% against the U.S. dollar to 1.3314.

Central bank comments lift market sentiment

Comments from policymakers helped improve investor confidence after senior officials signalled that interest rates may remain on hold.

Federal Reserve Governor Kevin Warsh, European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey all adopted a more accommodative tone during a panel discussion in Sintra. Jefferies strategist Mohit Kumar described Bailey as “probably the most clear,” arguing the UK is experiencing a “soft patch” where higher mortgage rates have “effectively tightened” monetary policy without the need for further interest rate increases.

Lagarde also pointed to the sharp fall in energy prices, noting oil “was at $120 a few weeks ago and is now close to $70.”

Jefferies said the discussion “supports our view of no (further) hikes this year from the Fed, ECB or BoE.”

Oil prices fall as Iran talks make progress

Energy markets remained under pressure after fresh signs of diplomatic progress between Washington and Tehran.

Iran’s Deputy Foreign Minister Kazem Gharibabadi criticised a U.S.-led regional security summit in Bahrain, writing on X that “Hormuz is defined under Iran’s command, not CENTCOM” and that a military summit “cannot establish legal order and security for the Persian Gulf.”

Meanwhile, Qatar and Pakistan said in a joint statement that “positive progress was made” during indirect talks in Doha between U.S. and Iranian officials, with further negotiations expected after the funeral processions for Iran’s former Supreme Leader.

U.S. President Donald Trump told reporters that “the denuclearization of Iran is moving along well” and described the Doha discussions as “very good.” Vice President JD Vance also said “talks are going well,” while noting that negotiations over Iran’s nuclear programme were still at an early stage.

Brent crude declined 1.23% to $70.69 a barrel, while WTI crude fell 1.3% to $67.69. Gold futures slipped 0.20% to $4,074.67 an ounce, although spot gold rose 0.76% to $4,062.08.

Chip stocks pressured by Meta AI plans

Jefferies also noted that semiconductor shares came under pressure after reports that Meta plans to monetise excess artificial intelligence computing capacity through a cloud offering.

The development weighed on Asian technology stocks overnight, with South Korea’s KOSPI among the weakest-performing major indices.

Currys gains after strong annual results

Among UK-listed companies, Currys (LSE:CURY) traded higher after reporting an 18% increase in annual profit and saying trading had started strongly in the new financial year, supported by sales growth across both its UK and Nordic businesses.

Investors turn cautious at the start of the second half

US equity futures traded lower on Wednesday as investors prepared for a busy day of economic events, including comments from Federal Reserve Chair Kevin Warsh, fresh manufacturing data and diplomatic developments involving the US and Iran.

At 03:16 ET, Dow Jones futures were down 202 points, or 0.4%, while S&P 500 futures declined 33 points and Nasdaq 100 futures fell 195 points, representing losses of 0.4% and 0.6%, respectively.

Wall Street finished Tuesday’s session in positive territory, with technology stocks leading gains after a volatile second quarter. The Philadelphia Semiconductor Index also posted another strong advance, completing its best quarterly performance since its launch in the early 1990s.

Labour market strength keeps rate hike expectations alive

Recent US economic data painted a mixed picture.

Job openings for May exceeded forecasts, while housing and consumer confidence indicators weakened. Combined with hawkish remarks from Cleveland Fed President Beth Hammack, the stronger labour market data reinforced expectations that the Federal Reserve could still raise interest rates as early as July.

Markets await policy clues from Kevin Warsh

Attention will centre on Kevin Warsh’s appearance at the ECB Forum on Central Banking in Sintra later today.

Since taking over from Jerome Powell, Warsh has suggested the Federal Reserve could reduce its reliance on forward guidance and reassess the way it communicates monetary policy.

Investors will also be listening closely for his assessment of inflation and economic growth, particularly after easing oil prices reduced some concerns over energy-driven inflation following the preliminary US-Iran agreement.

Geopolitics and manufacturing data remain in focus

Diplomatic talks involving US and Iranian representatives in Qatar are also being monitored closely, although officials have confirmed that no direct high-level negotiations are currently scheduled.

Meanwhile, economists expect the ISM Manufacturing PMI to edge down slightly to 53.8 in June from 54.0 in May, while the ADP employment report will provide another snapshot of the US labour market ahead of Thursday’s official payrolls release.

Nike disappoints despite earnings beat

Nike (NYSE:NKE) shares declined in premarket trading after the company warned that its turnaround remains in its early stages.

Although quarterly revenue exceeded expectations, continued weakness in China weighed on overall performance.

Chief Executive Elliott Hill told investors that results “aren’t there yet,” adding that the company is not “living up to our full potential.”

Markets pause ahead of key economic events

European equity markets opened mixed on Wednesday as investors awaited the release of the eurozone’s latest inflation figures and a closely watched panel discussion featuring some of the world’s leading central bankers, including newly appointed Federal Reserve Chair Kevin Warsh.

The pan-European STOXX 600 slipped 0.2% in early trading after reaching a record high on Tuesday. Germany’s DAX gained 0.2%, while France’s CAC 40 fell 0.3% and London’s FTSE 100 declined 0.2%. Spain’s IBEX 35 and Italy’s FTSE MIB both traded 0.3% lower.

Inflation data expected to influence policy outlook

Markets are focused on the eurozone’s preliminary inflation reading for June, with economists expecting annual headline inflation to slow to 3.0% from 3.2% in May.

Investors will assess whether price pressures are continuing to ease following the European Central Bank’s recent interest rate increases, introduced in response to the sharp rise in energy prices triggered by the outbreak of the US-Iran conflict.

Although crude oil prices have largely returned to levels seen before the conflict and shipping traffic through the Strait of Hormuz has improved, geopolitical developments remain a source of uncertainty.

Reports from the Wall Street Journal suggested that US President Donald Trump recently considered resuming large-scale military action against Iran before deciding to continue diplomatic negotiations. Representatives from both countries are expected to participate in mediated talks in Doha.

Sintra forum takes centre stage

Attention will also turn to the ECB Forum on Central Banking in Sintra, Portugal, where senior policymakers from the world’s leading central banks are due to discuss the global economic outlook.

The event will feature the first international appearance by Federal Reserve Chair Kevin Warsh since succeeding Jerome Powell in May.

Investors look for clues on future interest rates

Markets will closely examine Warsh’s remarks for further insight into the direction of US monetary policy.

Although he was appointed by President Trump, who has repeatedly argued in favour of lower interest rates, Warsh has recently adopted a more hawkish tone, warning about the risk of persistent structural inflation.

Investors will also analyse comments from European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and Bank of Canada Governor Tiff Macklem for indications of when major central banks may begin easing monetary policy as the impact of the energy crisis continues to fade.

Markets open lower ahead of key economic updates

The FTSE 100 traded lower on Wednesday as investors adopted a cautious stance at the beginning of the new quarter, awaiting global manufacturing PMI releases, developments in Iran-Qatar negotiations and fresh comments from Bank of England Governor Andrew Bailey on the inflation outlook.

The FTSE 100 fell 0.29% in early trading. Germany’s DAX eased 0.03%, while France’s CAC 40 declined 0.49%. Sterling also weakened against the US dollar, with GBP/USD falling 0.23% to 1.3232.

Geopolitics and inflation remain in focus

Investor sentiment was influenced by renewed diplomatic efforts in Doha, where Qatar’s Prime Minister met US envoys Steve Witkoff and Jared Kushner alongside Iranian negotiators for technical discussions described by Qatar’s foreign ministry as taking place “whether direct or indirect.”

Meanwhile, Iran’s chief negotiator, Mohammad Bagher Ghalibaf, described the Strait of Hormuz as Tehran’s “greatest instrument of power,” adding that negotiations on a final agreement would not begin until the provisions of the existing memorandum of understanding had been implemented.

Speaking to CNBC, Bank of England Governor Andrew Bailey said inflation would likely have returned to the central bank’s 2% target around April or May had it not been for the recent conflict.

“It’s going to take longer,” Bailey said, pointing to a weakening economy and a softer labour market as factors allowing policymakers to remain patient despite some members of the Monetary Policy Committee favouring tighter monetary policy.

UK inflation currently stands at 2.8% and is expected to rise towards 3.2% later this year as higher energy prices continue to feed through into the economy.

UK housing market shows mixed picture

New data from Nationwide showed annual UK house price growth accelerated to 2.2% in June from 1.7% in May, although prices were unchanged on a seasonally adjusted monthly basis. The average UK home is now valued at £277,484.

Chief Economist Robert Gardner said the housing market had “softened a little in recent months” because of uncertainty surrounding the Middle East, higher energy prices and elevated mortgage rates. However, he noted that the Iran-US memorandum of understanding had helped reduce oil prices from recent highs, potentially easing pressure on interest rates.

Northern Ireland remained the UK’s strongest-performing housing market with annual price growth of 8.6% during the second quarter, while the Outer South East recorded the weakest performance with growth of just 0.1%.

Oil rises while gold extends losses

Brent crude increased 0.25% to $73.13 a barrel, while US West Texas Intermediate crude gained 0.14% to $69.60.

Gold prices continued to weaken, with gold futures falling 1.43% to $3,981.05 an ounce and spot gold declining 0.97% to $3,969.62.

UK corporate highlights

CMC Markets (LSE:CMCX) upgraded its FY2027 net operating income guidance after continued strong expansion in its B2B trading platform business.

Topps Tiles (LSE:TPT) warned that full-year profit is expected to come in only slightly above £6.5 million as softer consumer demand and recent heatwaves weighed on trading.

Greggs (LSE:GRG) announced that long-serving Chief Financial Officer Richard Hutton will retire at the end of 2026, with Ben Waldron appointed as his successor.

Associated British Foods (LSE:ABF) maintained its full-year guidance outside its Sugar division after Primark delivered 3% sales growth during the third quarter.

FTSE 100 opens steady as investors monitor PMI data and geopolitics while ABF warns on profits, Topps Tiles flags weaker trading and Brent crude rises.

Market Overview

UK markets opened mixed, with the FTSE 100 edging 0.001 per cent higher to 10,497.60, while the Euronext 100 slipped 0.02 per cent to 1,925.91, and the DAX fell 0.04% to 24,986.41. Overnight, the Nasdaq closed higher at 26,213.72 and the S&P 500 gained to 7,499.36 as investors balanced stronger US technology stocks against caution ahead of PMI data, eurozone inflation figures, central bank commentary and developments surrounding Iran-Qatar diplomacy.

Commodity markets reflected ongoing geopolitical uncertainty. Brent crude firmed as hopes for renewed US-Iran engagement faded, while copper and natural gas weakened and gold also fell. Against sterling, the US dollar strengthened, the euro, Swiss franc and Australian dollar were little changed, while the Japanese yen weakened. Bitcoin traded slightly higher versus sterling.

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Market Numbers

FTSE 100: Up (+0.00%), 10,497.60
Euronext 100: Down (-0.02%), 1,925.91
DAX: Down (-0.04%), 24,986.41
NASDAQ: Up, 26,213.72
S&P 500: Up, 7,499.36

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In the Headlines

Profit warning – Associated British Foods (LSE:ABF)
Primark owner Associated British Foods warned full-year profits are expected to be lower after higher natural gas prices increased costs at its sugar business. The update highlights continued pressure on energy-intensive operations despite resilient retail trading.

Retail slowdown – Topps Tiles (LSE:TPT)
Topps Tiles said prolonged hot weather added to already challenging trading conditions, with the heatwave reducing customer footfall. The update underlines the pressures facing UK discretionary retailers despite broader signs of consumer resilience.

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Currencies (vs GBP)

USD: Down (-0.02%), $1.3250
CHF: Up (+0.01%), Fr.1.0716
EUR: Unchanged (0.00%), €1.1609
JPY: Down (-0.01%), ¥215.4925
AUD: Unchanged (0.00%), $1.9169
Bitcoin (BTC/GBP): Up, £44,310

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Commodities

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

Traders lock in gains after Monday’s strong advance

U.S. stock futures pointed to a modestly lower open on Tuesday as investors appeared ready to take profits after the previous session’s broad rally.

The cautious tone follows Monday’s powerful advance, which carried the Dow Jones Industrial Average to another record closing high and encouraged some traders to reduce exposure after recent gains.

Higher oil prices also weighed on sentiment, with U.S. crude futures rising 0.6% after jumping 2.2% during Monday’s session.

The latest gains in crude have been driven by uncertainty over possible diplomatic talks between the United States and Iran. President Donald Trump said negotiations were scheduled to take place in Qatar on Tuesday, while a spokesperson for Iran’s Foreign Ministry reportedly denied that any meeting had been arranged.

Investors await key U.S. economic reports

Despite the weaker outlook for the market open, investors are expected to remain cautious ahead of several important U.S. economic releases due later this week, including the closely watched monthly employment report.

Those figures are likely to shape expectations for the U.S. economy and the Federal Reserve’s next policy decisions.

Technology stocks led Monday’s market rebound

Wall Street ended Monday’s session firmly higher after overcoming early volatility, with all three major U.S. indices posting strong gains.

The Nasdaq climbed 522.53 points, or 2.1%, to finish at 25,820.14, while the S&P 500 gained 86.41 points, or 1.2%, to close at 7,440.43. The Dow added 306.63 points, or 0.6%, ending the day at a record 52,182.74 after giving back part of its intraday advance.

Technology companies were the primary driver of the rally, helping the Nasdaq recover following last week’s 4.6% decline.

Alphabet (NASDAQ:GOOGL) rose 4.8% after the Google parent company joined the Dow Jones Industrial Average.

Semiconductor stocks outperform broader market

Chipmakers were among the session’s strongest performers, lifting the Philadelphia Semiconductor Index by 3.8%.

Networking and computer hardware shares also posted solid gains, with the NYSE Arca Networking Index advancing 3.7% and the NYSE Arca Computer Hardware Index adding 2.4%.

Elsewhere, brokerage stocks weakened, dragging the NYSE Arca Broker/Dealer Index down 2.2%. Steelmakers, airlines and gold miners also declined, partially offsetting the technology-led rally.

Markets also remained focused on geopolitical developments after reports suggested the United States and Iran had agreed to temporarily suspend hostilities following weekend military exchanges.

President Donald Trump later stated on Truth Social that Iran had requested a meeting in Doha, Qatar.

AI optimism lifts European equity markets

European markets traded higher on Tuesday, supported by a strong recovery in technology stocks as investor confidence in artificial intelligence-related companies improved.

With oil prices retreating to levels seen before the recent Middle East conflict, investors continue to expect that the European Central Bank (ECB) will be able to keep interest rates unchanged in the near term.

Speaking in Sintra, Portugal, ECB Chief Economist Philip Lane said the secondary effects of higher energy prices are likely to take time to emerge and indicated policymakers are not prepared to commit to a specific interest-rate path.

Falling oil prices support market sentiment

Crude oil prices extended their decline and remained on course for a second consecutive monthly loss, despite conflicting comments over whether the United States and Iran would hold talks in Qatar on Tuesday.

Among the major European indices, Germany’s DAX rose 1.3%, the UK’s FTSE 100 gained 0.8%, and France’s CAC 40 advanced 0.2%.

Sterling gave back earlier gains against the U.S. dollar after revised figures from the Office for National Statistics confirmed the UK economy expanded as initially estimated during the first quarter, driven largely by the services sector.

The economy grew 0.6% quarter-on-quarter in the first three months of the year, following revised growth of 0.1% in the fourth quarter.

Technology sector outperforms

Technology shares were among the strongest performers, with Infineon (TG:IFX), STMicroelectronics (BIT:STMMI) and ASML Holding (EU:ASML) posting solid gains.

Elsewhere, French pharmaceutical company Sanofi (EU:SAN) traded little changed after reporting that Nexviazyme achieved all primary and secondary endpoints in a Phase III trial involving the infantile form of Pompe disease.

British travel and insurance group Saga (LSE:SAGA) declined after stating that trading remained “in line with expectations” during the first four months of the year.

Meanwhile, supermarket operator J Sainsbury (LSE:SBRY) advanced after reaffirming its full-year profit guidance.

International Workplace Group (LSE:IWG) also moved sharply higher after announcing a $50 million increase to its 2026 share buyback programme.

U.S. equity futures traded modestly higher on Tuesday as markets headed into the final trading session of both the second quarter and the first half of the year. Investors are monitoring reports of potential negotiations between the United States and Iran, while a busy economic calendar and Nike’s quarterly earnings are also in focus.

Markets prepare for quarter-end trading

At 03:10 ET (07:10 GMT), futures on the Dow Jones Industrial Average were up 39 points, or 0.1%. S&P 500 futures gained 7 points, or 0.1%, while Nasdaq 100 futures advanced 67 points, or 0.2%.

Wall Street closed higher on Monday, led by a recovery in technology shares after concerns over artificial intelligence infrastructure spending weighed on the sector last week. Semiconductor stocks rebounded around 3.8%, recovering from their weakest weekly performance since April last year.

The rally allowed the S&P 500 to end a five-session losing streak and left the index on course for its strongest quarterly gain since the post-pandemic recovery.

Investor confidence also improved after the U.S. Supreme Court ruled that Federal Reserve Governor Lisa Cook could remain in office while legal proceedings continue regarding efforts by the Trump administration to remove her. The decision helped reduce concerns over the Fed’s political independence.

Possible U.S.-Iran meeting remains in focus

Attention has shifted to Qatar after President Donald Trump said U.S. representatives would meet Iranian officials there.

CNN reported that special envoy Steve Witkoff is travelling to Qatar, although Iranian authorities insist that no formal negotiations have been scheduled in the coming days.

According to Axios, Witkoff and Jared Kushner will meet Qatari officials, while technical delegations from both the United States and Iran are expected to hold separate discussions with mediators from Qatar and Pakistan. An Iranian expert delegation is also expected to arrive in Doha later this week.

The diplomatic activity follows reports that Washington and Tehran have agreed to halt attacks in the Strait of Hormuz. Brent crude was trading around US$73.38 a barrel after falling back to levels seen before the recent conflict.

Economic releases take centre stage

Investors are also awaiting a series of important U.S. economic reports.

Tuesday’s focus will be the May JOLTS job openings report, with economists forecasting vacancies to decline to 7.28 million from 7.618 million in April.

The Conference Board’s consumer confidence survey will also be released later in the session.

These reports are expected to provide additional insight ahead of Friday’s closely watched non-farm payrolls report, which could influence the Federal Reserve’s interest rate outlook.

Nike results expected after the close

Nike (NYSE:NKE) is due to report quarterly earnings after the closing bell, with investors looking for further signs that Chief Executive Elliott Hill’s turnaround strategy is gaining momentum.

In March, Nike warned that quarterly sales would decline by between 2% and 4%, reflecting weaker demand across China, Europe, the Middle East and Africa.

Earlier this month, the company appointed David Denton as Chief Financial Officer. Hill described him as a “proven public-company CFO who knows how to help great consumer brands operate with discipline and invest to win.”

Chinese factory activity improves

Official figures released on Tuesday showed that China’s manufacturing sector expanded slightly faster than expected in June.

The official manufacturing PMI rose to 50.3 from 50.0 in May, exceeding forecasts of 50.2.

Export demand remained the main driver of growth, although analysts believe the recent boost could fade as geopolitical tensions ease and oil markets stabilise.

FTSE 100 and European markets opened higher as Sainsbury’s and Saga updated investors while Brent crude eased and Bitcoin strengthened.

Market Overview

UK and European markets opened higher at the start of the new trading week. The FTSE 100 edged up to 10,484.31, the Euronext 100 gained 0.03 per cent to 1,901.55, and Germany’s DAX advanced 0.73 per cent to 24,815.22. Overnight, the Nasdaq closed higher at 25,820.15 and the S&P 500 finished at 7,440.43, as investors balanced stronger UK GDP data against ongoing uncertainty surrounding US-Iran negotiations, while attention also turned to central bank speeches and economic data due later this week.

Commodity markets reflected easing geopolitical concerns. Brent crude slipped as renewed US-Iran talks reduced worries over supply disruption through the Strait of Hormuz, while copper and gold also traded lower. Natural gas edged lower, Bitcoin fell against sterling, and sterling was broadly firmer against the euro, Swiss franc, US dollar and Australian dollar, while weakening against the Japanese yen.

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Market Numbers

FTSE 100: Up (+0.001%), 10,484.31

Euronext 100: Up (+0.03%), 1,901.55

DAX: Up (+0.73%), 24,815.22

NASDAQ: Up, 25,820.15

S&P 500: Up, 7,440.43

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In the Headlines

Trading update – Sainsbury’s (LSE:SBRY)

Sainsbury’s reported continued growth in grocery sales and market share while maintaining its full-year profit guidance. The update suggests resilient consumer demand and supports confidence in the supermarket group’s outlook despite a competitive retail environment.

Positive momentum – Saga (LSE:SAGA)

Saga said trading remains in line with expectations as growth in its travel business and progress with its long-term Ageas insurance partnership helped reduce debt and strengthen the balance sheet. The update reinforces management’s confidence in meeting full-year guidance.

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Currencies (vs GBP)

USD: Down (-0.02%), $1.3253

CHF: Down (-0.01%), Fr.1.0706

EUR: Down (-0.06%), €1.1606

JPY: Up (+0.06%), ¥214.599

AUD: Down (-0.03%), $1.9259

Bitcoin (BTC/GBP): Down, £44,891.13

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Commodities

Copper: Down

Gold: Down

Brent Crude: Down

Natural Gas: Down