Category: Market Summary

U.S. equity futures traded higher on Monday as investors reacted positively to signs of easing tensions between the United States and Iran, helping improve market sentiment ahead of one of the busiest weeks of the earnings season and a key Federal Reserve policy meeting.

Dow Jones futures rose 398 points, or 0.8%, while S&P 500 futures added 0.9%. Nasdaq 100 futures outperformed with a 1.4% gain, supported by renewed optimism surrounding technology stocks.

Investors await major earnings reports

Attention is now shifting toward quarterly results, with around one-third of S&P 500 companies due to report this week. Analysts expect overall earnings growth of roughly 26.5% compared with the same period last year.

The spotlight will fall on several of the largest technology companies, including Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL). Their earnings are expected to provide important clues about the sustainability of record investment in artificial intelligence infrastructure and whether those expenditures are translating into stronger financial performance.

Markets will also closely monitor Wednesday’s Federal Reserve meeting. Although geopolitical developments have added uncertainty to the inflation outlook, investors continue to expect policymakers to leave interest rates unchanged.

Geopolitical developments support risk appetite

The improvement in investor confidence follows a second consecutive day without renewed military action between the United States and Iran, reducing fears of a broader conflict that could disrupt global energy supplies.

Reports suggest President Donald Trump chose to delay further military operations while diplomatic efforts continue. Speaking to Fox News, U.S. Ambassador to the United Nations Mike Waltz said the administration is “giving talks some space.”

He added: “We’ve had both Oman and Iran, and a number of our other negotiators, engaged at every level, from the most senior levels all the way down to the technical level over the past few weeks, and particularly in the past few days.”

Iran has also indicated it will refrain from additional attacks provided the United States maintains its suspension of military operations.

Oil declines while AI investment remains in focus

Brent crude fell 6.8% to around $90.25 per barrel as concerns over potential supply disruptions eased. Investors had previously feared that conflict around the Strait of Hormuz and the Bab el-Mandeb Strait could significantly disrupt global energy markets.

Meanwhile, Nvidia (NASDAQ:NVDA) is reportedly discussing a financial guarantee worth approximately $250 billion for OpenAI’s planned Ohio data centre project. According to the Wall Street Journal, the development could ultimately exceed $500 billion in value and highlights the continued scale of investment flowing into artificial intelligence infrastructure.

Markets also welcomed the strong stock market debut of Chinese chipmaker CXMT Corp, whose shares surged around 500% following an $8.6 billion IPO, underlining continued investor appetite for AI-related businesses despite growing concerns over capital expenditure.

European markets rally as oil falls on US-Iran truce hopes, Vodafone lifts guidance, AstraZeneca posts strong first-half growth and Brent declines.

Market Overview

The FTSE 100 opened broadly unchanged at 10,736.14, while European markets moved higher, with the Euronext 100 gaining 0.11 per cent and Germany’s DAX rising 1.38 per cent. Overnight, the Nasdaq closed lower at 24,975.82, while the S&P 500 edged higher to 7,411.98. Investor sentiment improved as the US-Iran truce continued to hold, easing geopolitical concerns and supporting European equities alongside expectations surrounding central bank policy.

Commodity markets reflected the shift in risk sentiment, with Brent crude falling sharply as hopes for a diplomatic breakthrough reduced supply concerns, while copper and gold edged higher and natural gas eased. Bitcoin traded broadly unchanged against sterling, while the pound weakened slightly against the US dollar, Swiss franc, euro, Japanese yen and Australian dollar.

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Market Numbers

FTSE 100: Down (-0.001%), 10,736.14
Euronext 100: Up (+0.11%), 1,923.38
DAX: Up (+1.38%), 25,445.57
NASDAQ: Down, 24,975.82
S&P 500: Up, 7,411.98

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In the Headlines

Guidance raised – Vodafone (LSE:VOD)
Vodafone raised its full-year guidance after reporting a strong first quarter, supported by broad-based revenue growth and the consolidation of Safaricom. The upgrade reinforces confidence in the group’s earnings and cash flow outlook following its strategic expansion.

Pipeline strength – AstraZeneca (LSE:AZN)
AstraZeneca reported strong first-half growth, driven by robust demand across its medicines portfolio and continued pipeline expansion. The results support the company’s long-term growth strategy and reinforce its position within the global pharmaceutical sector.

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Currencies (vs GBP)

USD: Down (-0.03%), $1.3351
CHF: Down (-0.08%), Fr.1.0898
EUR: Down (-0.01%), €1.1717
JPY: Down (-0.00%), ¥218.449
AUD: Up (+0.01%), $1.9089
Bitcoin (BTC/GBP): Up, £48,925.10

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Commodities

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

European equity markets opened strongly on Monday after a sharp decline in crude oil prices boosted investor confidence, easing concerns over inflation and supporting risk appetite ahead of a busy week of central bank decisions and corporate earnings announcements.

The pan-European STOXX 600 advanced nearly 1% in early trading, breaking out of several sessions of largely sideways movement. Gains were widespread, with technology and other rate-sensitive stocks leading the advance alongside industrial companies and consumer-focused businesses expected to benefit from lower energy costs.

Germany’s DAX climbed 1.3%, while France’s CAC 40, Italy’s FTSE MIB and Spain’s IBEX each gained 0.9%. London’s FTSE 100 also moved higher, adding 0.4%.

Oil retreat eases inflation concerns

Energy markets came under pressure after Iranian officials indicated Tehran would suspend attacks in key shipping corridors if the United States maintained its pause in military operations. The prospect of a reduction in regional tensions sent crude prices down by almost 5%, reversing part of the recent rally that had lifted oil above $100 a barrel.

The decline in energy prices has been welcomed by investors, as lower oil costs reduce inflationary pressures and ease operating expenses for businesses across Europe. Lower fuel prices also improve the outlook for corporate earnings by reducing manufacturing and transportation costs, while helping to limit the risk of further inflation-driven interest rate increases.

The softer energy backdrop also helped calm bond markets after concerns over supply disruptions had previously driven Eurozone government bond yields to their highest levels in 15 years.

Corporate earnings support gains

Company updates added further momentum to European markets.

AstraZeneca (LSE:AZN) gained 1.3% after reporting second-quarter earnings that exceeded market expectations.

Vodafone (LSE:VOD) rose around 4% after upgrading its full-year outlook following a strong start to the financial year.

Pharos Energy (LSE:PHAR) jumped 25% after Serica Energy agreed to acquire the company in a recommended cash transaction.

Pinewood Technologies (LSE:PINE) was among the session’s strongest performers, surging 33% after receiving a takeover approach from Ridgeview-backed U.K. Piston Bidco.

The combination of easing geopolitical tensions, lower energy prices and a series of positive corporate announcements provided a strong catalyst for European equities, with investors returning to risk assets at the start of a crucial week for financial markets.

UK equities moved higher on Monday after signs of a sustained pause in hostilities between the United States and Iran helped improve investor sentiment and reduced concerns over a broader regional conflict. Continued diplomatic discussions involving Iran and Oman over the reopening of the Strait of Hormuz also supported markets by raising hopes that a key global shipping route could soon return to normal operations.

By 07:35 GMT, the FTSE 100 was up 0.42%, while Germany’s DAX gained 1.3% and France’s CAC 40 added 0.72%. Sterling also strengthened against the U.S. dollar, with GBP/USD rising 0.16% to 1.3345.

The improvement in market confidence follows a third consecutive night without U.S. military strikes on Iran after senior military advisers reportedly recommended suspending the campaign. Diplomatic efforts have continued in an attempt to prevent a renewed escalation of the conflict.

Iran also signalled a temporary reduction in military activity. Army spokesperson Mohammad Akraminia said: “These attacks continued until two nights ago, but over the past two nights the Americans have stopped their attacks.”

He added: “Since… our strategy has essentially been retaliatory, we have also halted our retaliatory operations.”

According to reports, Admiral Bradley Cooper, the senior U.S. military commander in the region, advised President Donald Trump that the campaign had “reached the limits of its effectiveness” after most planned military targets had been exhausted. The assessment was reported to have influenced the decision to suspend further strikes.

However, U.S. officials stopped short of ruling out future military action. Speaking on NBC’s Meet the Press, U.S. Ambassador to the United Nations Mike Waltz said: “I wouldn’t go that far at all. The president is keeping all options on the table.”

Separately, Iranian state broadcaster IRIB reported that six vessels attempting to transit what it described as an “illegal and unsafe” route through the southern Strait of Hormuz were intercepted after allegedly disabling their navigation systems. According to the broadcaster, one vessel was involved in an accident while the remaining ships were turned back under “decisive Iranian management.” IRIB also claimed the vessels had been “provoked by the US military,” although this assertion has not been independently verified.

Attention is now turning to Washington, where Israeli Prime Minister Benjamin Netanyahu is scheduled to meet President Trump on Tuesday in what will be their seventh meeting since January 2025.

Oil prices declined sharply as traders reacted to the apparent easing in geopolitical tensions. U.S. WTI crude fell 5.6% to $84.32 a barrel, while Brent crude dropped 5.2% to $86.94. Gold continued to attract safe-haven demand despite the improved market mood, with gold futures rising 0.84% to $4,104.95 and spot gold advancing 1.2% to $4,102.82.

UK corporate highlights

Among individual stocks, AstraZeneca (LSE:AZN) exceeded second-quarter profit expectations and reaffirmed its outlook for 2026, supported by continued strong sales of its oncology and cardiovascular medicines.

Vodafone (LSE:VOD) upgraded its full-year guidance after delivering a strong start to the financial year, helped by solid underlying trading and the consolidation of its increased stake in Safaricom.

Meanwhile, Cranswick (LSE:CWK) reported higher first-quarter revenue, driven by continued demand for protein products, while leaving its full-year expectations unchanged.

U.S. equity futures pointed to a stronger start on Friday, with investors looking to rebound from the previous session’s losses after upbeat earnings from Intel and a sharp retreat in crude oil prices helped restore confidence.

The market recovery follows a difficult Thursday in which technology stocks came under heavy pressure amid rising concerns over artificial intelligence investment spending and soaring energy prices.

Intel delivers a boost for semiconductor stocks

Intel (NASDAQ:INTC) rose roughly 3% in premarket trading after posting second-quarter earnings that surpassed analysts’ expectations, supported by its fastest revenue growth in fifteen years.

The chipmaker also issued encouraging guidance for the third quarter, helping improve sentiment across the semiconductor sector after a broad technology sell-off.

Oil retreat supports broader market mood

Crude oil prices reversed sharply on Friday, with U.S. futures falling more than 3% after surging over 6% during the previous session.

The earlier rally had been triggered by attacks on oil tankers in the Red Sea, which intensified fears of potential supply disruptions.

Despite lower energy prices, geopolitical risks remained elevated as military exchanges between the United States and Iran continued to escalate.

The U.S. carried out a thirteenth consecutive night of strikes on Iranian targets, while Iran responded with missile attacks directed at neighbouring countries hosting American military installations.

Investors continue to watch trade developments

Market participants also remained focused on fresh trade measures announced by the Trump administration.

The White House introduced tariffs ranging from 10% to 12.5% on imports from 60 economies accused of failing to prevent goods produced with forced labour from entering global supply chains.

The new measures affect major trading partners including the European Union, the United Kingdom, China, India, Japan and Canada, replacing the temporary 10% tariff that expired on Friday.

Thursday’s losses were led by technology stocks

All three major U.S. indices closed lower on Thursday.

The Nasdaq dropped 2.2% to 25,137.69, the S&P 500 declined 1.2% to 7,408.30 and the Dow Jones Industrial Average lost 1.0% to finish at 51,711.65.

Tesla (NASDAQ:TSLA) plunged 14.5% after reporting disappointing quarterly earnings alongside sharply higher capital expenditure.

Alphabet (NASDAQ:GOOGL) also fell 7.1%. Although the Google parent exceeded earnings forecasts, investors reacted negatively to its increased capital spending plans.

Inflation concerns remain despite oil pullback

The previous day’s surge in crude prices had revived worries that higher energy costs could complicate the inflation outlook and delay further interest rate cuts.

Danni Hewson, Head of Financial Analysis at AJ Bell, said: “With nerves about the potential inflationary impact of the escalating conflict in the Middle East colliding with worries about soaring tech capex it’s been tough to find the optimism.”

“It’s worth remembering that at the start of the month the price was hovering around $70 a barrel and markets had dared to hope that central bankers might be able to seamlessly shift from a pause to further cuts,” she added.

Labour market remains resilient

Economic data released on Thursday showed initial unemployment claims fell to 187,000 during the week ended July 18, well below expectations of 212,000.

The reading marked the lowest level for first-time jobless claims since September 1969, highlighting continued strength in the U.S. labour market.

Airlines and retailers lagged the market

Airline shares posted some of the steepest declines, with the NYSE Arca Airline Index falling 3.3%.

American Airlines (NASDAQ:AAL) slid 8.4% after reducing its full-year earnings outlook despite reporting quarterly results above expectations.

Retail, software, telecommunications and gold-related stocks also weakened, while biotechnology, pharmaceutical and healthcare shares outperformed.

European equity markets moved higher on Friday, recovering from their sharpest daily decline in more than two weeks as easing oil prices encouraged investors back into risk assets despite ongoing concerns over artificial intelligence spending.

Sentiment improved after Brent crude retreated almost 4 percent, having briefly climbed above $100 per barrel on Thursday following renewed Houthi attacks on oil tankers in the Red Sea.

UK retail sales surprise to the upside

Sterling strengthened against both the U.S. dollar and the euro after new figures showed that UK retail sales unexpectedly expanded in June.

Retail sales increased by 1.0 percent during the month, following May’s revised 1.2 percent gain, supported by strong demand for outdoor products during warmer weather. Economists had expected a monthly decline of 0.3 percent.

Compared with the same month last year, retail sales were up 4.2 percent, accelerating from the 3.5 percent annual growth recorded in May.

Major European indices post gains

Germany’s DAX advanced 0.8 percent, while France’s CAC 40 and the UK’s FTSE 100 each gained 0.4 percent during morning trading.

Corporate earnings drive individual movers

British polymer specialist Victrex (LSE:VCT) rose almost 2 percent after announcing changes to its management team.

HSBC Holdings (LSE:HSBA) added 1.3 percent after agreeing to sell its Singapore life and health insurance business to Allianz.

Shares in DiscoverIE Group (LSE:DSCV) jumped 13 percent after the electronics manufacturer reported organic order growth of 31 percent and a 6 percent year-on-year increase in first-quarter sales.

Engineering company Renishaw (LSE:RSW) climbed 6.6 percent after indicating that annual profit is expected to exceed previous market expectations.

German software leader SAP (TG:SAP) gained 6 percent after delivering stronger quarterly revenue.

ATOSS Software (TG:AOF) advanced 4.3 percent following second-quarter revenue and profit growth.

Volkswagen (TG:VOW3) slipped 1 percent after posting weaker-than-expected second-quarter earnings and lowering its forecasts for annual sales and vehicle deliveries.

Swedish security and access specialist Assa Abloy (TG:ALZC) edged 1 percent higher after completing the acquisition of U.S.-based Classic Brass Inc.

Security services provider Securitas (TG:S7MB) tumbled 11 percent after reporting second-quarter core profit below market expectations.

French pharmaceutical company Sanofi (EU:SAN) declined 2.2 percent after ending the clinical development of amlitelimab for moderate-to-severe atopic dermatitis following mixed Phase 3 trial results.

U.S. equity futures traded in positive territory on Friday as markets weighed escalating geopolitical risks against encouraging corporate earnings, while investors also assessed new U.S. trade tariffs and looked ahead to key economic data.

Markets rebound despite ongoing geopolitical uncertainty

As of 03:34 ET (07:34 GMT), Dow Jones futures had risen 0.4%, S&P 500 futures added 0.2%, and Nasdaq 100 futures advanced 0.1%.

The gains followed Thursday’s market decline, which was triggered by renewed concerns over the conflict involving the United States, Iran and Iran-backed Houthi forces. Reports of attacks on Saudi oil tankers in the Red Sea, together with continued military exchanges between Washington and Tehran, briefly pushed Brent crude above $100 per barrel.

The surge in oil prices renewed fears that inflationary pressures could persist, reducing the likelihood of near-term interest rate cuts and lifting U.S. Treasury yields.

“The continued rise in energy prices is starting to put pressure on financial markets more broadly, beyond just the bond market. While central banks continue to take a measured approach to the renewed surge in energy prices, there is still plenty of scope for the turbulence in markets to ratchet higher if the U.S.-Iran conflict continues to escalate,” said Jonas Goltermann, Chief Markets Economist at Capital Economics.

Fighting continues as ceasefire proposal is rejected

The U.S. military announced that it had carried out a 13th consecutive night of strikes targeting Iranian military facilities, including drone storage locations and coastal surveillance infrastructure.

According to reports from The New York Times, Iran rejected another ceasefire proposal delivered through Iraqi officials on behalf of President Donald Trump, with Iranian representatives maintaining that “America’s outlook” remained unacceptable.

Meanwhile, Yemen’s Houthi movement claimed responsibility for disrupting shipping through the Bab el-Mandeb Strait after attacking Saudi oil tankers. Saudi Arabia confirmed that one vessel had been struck.

Although Brent crude later retreated to around $98.90 per barrel, prices remain well above levels seen following the temporary ceasefire reached in June.

New U.S. tariffs add another layer of uncertainty

Trade policy also drew attention after the White House introduced import tariffs of between 10% and 12.5% on products from 60 countries.

The administration said the measures are designed to address insufficient enforcement of restrictions on goods produced with forced labour. Canada and the European Union are among the countries affected, with officials arguing that existing regulations have not been adequately enforced.

Media reports indicate that further tariff measures targeting manufacturing imports could be announced in the coming weeks.

Intel delivers upbeat quarterly performance

Intel (NASDAQ:INTC) gained in after-hours trading after reporting second-quarter results that exceeded Wall Street expectations.

Revenue climbed 25% year-on-year, while guidance for the current quarter of $15.8 billion to $16.8 billion also came in above analyst forecasts.

Chief Executive Lip-Bu Tan said artificial intelligence is “driving unprecedented demand for compute” and believes the company is positioned for “sustainable growth.”

Intel continues to benefit from expanding AI investment and its strategic role as one of the few large-scale semiconductor manufacturers operating in the United States.

PMI data in focus

Investors are also awaiting S&P Global’s preliminary July PMI figures for the U.S.

June’s composite PMI stood at 52.2, reflecting continued expansion in economic activity, supported by robust services demand and a fourth consecutive month of manufacturing growth as businesses strengthened inventories to manage supply risks.

European equities traded little changed on Friday as a sharp rise in oil prices and fresh U.S. tariff measures offset support from corporate earnings, reinforcing expectations that inflationary pressures could keep interest rates elevated for longer.

The pan-European STOXX 600 remained broadly flat in early trading, with investors balancing geopolitical risks and trade tensions against the latest economic and corporate developments.

Oil rally and geopolitical tensions weigh on sentiment

Crude oil prices jumped more than 7%, pushing Brent above $100 per barrel for the first time in several months after U.S. President Donald Trump warned of a major military response against Iran and Yemen’s Houthi movement following continued attacks on commercial shipping in the Red Sea and Persian Gulf.

The surge in energy prices renewed concerns about imported inflation across Europe, where many economies remain heavily dependent on energy imports.

New U.S. tariffs increase pressure on global trade

Market sentiment was also affected after the United States introduced new import tariffs ranging from 10% to 12.5% on goods from 60 trading partners, including the European Union.

The White House said the measures target countries that do not adequately enforce restrictions on forced labour imports, replacing a previous 10% global tariff. The move adds further pressure on European exporters already facing weaker international demand and higher transportation costs.

The combination of higher energy prices and renewed trade tensions pushed Eurozone government borrowing costs to their highest levels in 15 years across both short- and long-term maturities.

Investors reassess central bank expectations

Bond markets reflected growing expectations that both the European Central Bank and the U.S. Federal Reserve could keep monetary policy tighter for longer, with the possibility of additional interest rate increases before year-end to contain inflation.

Attention later in the session will turn to preliminary Eurozone Purchasing Managers’ Index (PMI) data, which is expected to indicate that business activity remains subdued as companies continue to face high financing costs and rising input prices.

Energy stocks outperform while technology remains under pressure

Strong gains in major energy companies such as Shell and BP helped provide support for European equity markets, although broader investor sentiment remained cautious following weak signals from the global technology sector.

Germany’s DAX rose 0.5%, Italy’s FTSE MIB gained 0.2%, while France’s CAC 40 and London’s FTSE 100 each slipped 0.1%.

Overnight, Intel’s (NASDAQ:INTC) latest quarterly earnings failed to improve sentiment across Asian technology markets, while Tesla’s (NASDAQ:TSLA) latest cash burn figures increased concerns that heavy investment in artificial intelligence infrastructure is weighing on corporate cash generation.

With government bond yields remaining near multi-decade highs and oil prices continuing to climb, investors have increasingly favoured defensive sectors with stable cash flows while awaiting greater clarity on central bank policy.

Corporate movers

Among notable stocks, Ubisoft (EU:UBI) declined 4% after releasing its first-quarter sales figures, while Volkswagen AG (TG:VOW3) lost 3% following the publication of its latest quarterly results and outlook.

UK equities moved higher on Friday after stronger-than-expected retail sales figures boosted investor confidence, helping offset ongoing concerns surrounding the escalating conflict between the United States and Iran.

The FTSE 100 gained 0.32% by 03:27 ET (07:27 GMT). Elsewhere in Europe, Germany’s DAX rose 0.88%, while France’s CAC 40 added 0.23%. Sterling also strengthened, with GBP/USD climbing 0.20% to 1.3341.

Middle East tensions and tariffs remain in focus

Geopolitical risks continued to dominate headlines after U.S. Central Command confirmed it had carried out a 13th consecutive night of military strikes against Iranian targets, including command facilities, drone storage locations and coastal surveillance sites.

Iranian state broadcaster IRIB reported explosions across several provinces and said two people were injured near Bandar Abbas. Iranian Foreign Minister Abbas Araghchi accused “compromised individuals” in Washington of pursuing “mindless aggression” that would increase the cost of any future agreement.

Political divisions also emerged in Washington. The U.S. House of Representatives voted 214-208 to limit President Donald Trump’s authority to continue military action without congressional approval, although a similar proposal failed in the Senate by a vote of 47-49.

Meanwhile, Axios reported that Trump is considering a larger military operation than February’s “Operation Epic Fury,” quoting the president as saying, “I am considering a massive attack. Bigger than ever before.” Secretary of State Marco Rubio added that Iran would continue to pay “a very heavy price.”

Trade policy also remained in the spotlight after a new round of U.S. tariffs on imports from 60 trading partners came into force. The duties, ranging from 10% to 12.5%, affect countries including China, India and members of the European Union. U.S. Trade Representative Jamieson Greer said the measures are aimed at nations that do not prohibit imports linked to forced labour.

UK retail sales surprise to the upside

Domestic economic data provided support for UK markets after the Office for National Statistics reported that retail sales volumes increased by 1.0% in June, comfortably beating expectations for a 0.3% decline.

The stronger reading was attributed to increased spending on seasonal clothing, air conditioning products and purchases linked to the World Cup. On an annual basis, retail sales rose 4.2%, significantly ahead of forecasts for 2.3%.

Recent data also showed UK inflation easing during June as fuel and food prices moderated, while labour market indicators suggested employment conditions were stabilising.

Oil retreats while gold remains steady

Energy markets weakened despite the geopolitical backdrop.

Brent crude fell 1.92% to $98.76 per barrel, while U.S. West Texas Intermediate crude declined 1.83% to $90.47. Gold prices were little changed, with futures edging up 0.04% to $4,051.87 per ounce and spot gold slipping 0.01% to $4,049.27.

UK corporate news

Reckitt Benckiser (LSE:RKT) agreed to sell its Russian hygiene business to Arnest Management LLC, expecting to record an estimated post-tax loss of approximately £175 million as it completes its exit from the market.

Hyperoptic announced that its fibre broadband network has now reached two million homes and business premises, with the company shifting its focus from network expansion towards growing its subscriber base following strong revenue growth.

discoverIE (LSE:DSCV) reported a robust start to its financial year, with organic orders increasing 31% and sales rising 6% during the first quarter. The company said adjusted full-year earnings are now expected to exceed the board’s previous expectations.