Category: Market Summary

European equity markets traded lower on Thursday as investors assessed rising geopolitical risks in the Middle East alongside a fresh wave of corporate earnings announcements.

Losses were partly cushioned after new economic data showed the U.K. economy returned to growth in May, supported by stronger activity in the services sector.

UK economy returns to growth

Figures released by the Office for National Statistics showed that U.K. gross domestic product expanded by 0.1% in May, reversing the 0.1% decline recorded in April, which had marked the first monthly contraction since October 2025.

On an annual basis, the economy grew 1.3% in May.

Despite the encouraging data, the FTSE 100 fell 0.4%, while Germany’s DAX and France’s CAC 40 both declined 1.1%.

Sterling also weakened against the U.S. dollar after reports suggested Home Secretary Shabana Mahmood is the leading candidate to become the UK’s next Chancellor.

Corporate news drives stock moves

Delivery Hero (TG:DHER) declined after Uber Technologies (NYSE:UBER) formally launched a public takeover offer valuing the German food delivery company at €41.50 per share.

TotalEnergies (LSE:TTE) also came under pressure after the French energy group said the conflict in the Middle East had reduced its second-quarter production by approximately 210,000 barrels of oil equivalent per day.

Experian (LSE:EXPN) traded lower after reaffirming its full-year outlook without upgrading guidance.

Ocado (LSE:OCDO) also lost ground after announcing additional delays to two automated fulfilment centres currently under development.

Mining group BHP (LSE:BHP) weakened after reporting a 5% decline in fourth-quarter copper production.

ABB (TG:ABB) also moved lower after announcing its $5.5 billion acquisition of British automation specialist Rotork, while Rotork shares surged on the agreed takeover.

Publicis and BASF outperform

Among the stronger performers, Publicis Groupe (EU:PUB) advanced after posting robust second-quarter results and raising its full-year guidance.

German chemicals producer BASF (TG:BAS) also gained after increasing its outlook for full-year EBITDA before special items.

US equity futures were little changed on Thursday as investors weighed encouraging corporate earnings against geopolitical uncertainty and prepared for another busy day of economic releases. Record quarterly results from Taiwan Semiconductor Manufacturing Company also reinforced confidence that investment in artificial intelligence infrastructure remains strong.

Inflation concerns ease as focus shifts to earnings

Following Wednesday’s gains, Wall Street futures traded in a narrow range as investors turned their attention back to company results and macroeconomic indicators.

At 04:00 ET, futures on the S&P 500 were down 0.2%, Nasdaq 100 futures declined 0.4%, while Dow Jones futures were broadly unchanged.

Recent inflation data has strengthened expectations that the Federal Reserve can leave interest rates unchanged in the coming months, reducing one of the market’s biggest concerns. Investors are now looking to corporate earnings to determine whether current equity valuations remain justified.

TSMC delivers another strong quarter

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) reported record second-quarter earnings after demand for advanced AI processors remained exceptionally strong.

Net profit increased 77% year over year to T$706.6 billion (US$22 billion), comfortably surpassing analysts’ forecasts.

As the primary chip manufacturer for companies including Nvidia and Apple, TSMC’s results are viewed as a key measure of global investment in artificial intelligence. The figures also followed positive guidance from ASML, adding further evidence that spending on AI infrastructure continues to accelerate.

Apple approval lifts Chinese technology stocks

Chinese technology shares advanced after Apple (NASDAQ:AAPL) received regulatory approval to launch Apple Intelligence features in China.

Alibaba (NYSE:BABA) gained almost 5%, while Baidu (NASDAQ:BIDU) rose around 4% as investors welcomed the approval, which clears the way for Apple’s AI services in one of its largest markets.

The development is expected to benefit both Apple and its domestic technology partners involved in supporting its artificial intelligence ecosystem.

Markets monitor geopolitical developments

Geopolitical risks remained firmly on investors’ radar following another round of US military action targeting Iran.

Although markets have become more resilient to daily developments, concerns remain that any disruption to shipping through the Strait of Hormuz could push energy prices higher and complicate the inflation outlook.

Investors await fresh market catalysts

Attention now turns to quarterly results from Netflix (NASDAQ:NFLX), GE Aerospace (NYSE:GE), State Street (NYSE:STT) and U.S. Bancorp (NYSE:USB), alongside June retail sales and weekly jobless claims data.

These releases are expected to provide a clearer picture of the strength of the US economy and help determine whether this year’s rally in equities can continue.

European equity markets traded little changed on Thursday as investors balanced easing inflationary pressures in the United States against rising geopolitical risks in the Middle East. While expectations of a patient Federal Reserve provided support, escalating tensions involving Washington and Tehran continued to keep energy prices elevated and limited risk appetite.

Markets remain steady despite geopolitical uncertainty

The pan-European STOXX 600 was broadly unchanged in early trading, outperforming weaker sentiment across Asian technology markets.

Germany’s DAX, France’s CAC 40 and Italy’s FTSE MIB also traded close to flat, while London’s FTSE 100 slipped 0.4%.

Investor sentiment remained heavily influenced by developments in the Middle East. Oil prices stayed near one-month highs after further US military strikes in Iran, while Tehran warned that the conflict could develop into what it described as an “existential war” with the United States.

Softer US data supports rate expectations

Providing some support to markets, the latest US inflation data reinforced expectations that the Federal Reserve is unlikely to tighten monetary policy in the near term.

Producer Price Index (PPI) figures released overnight came in below expectations, adding to recent evidence of moderating consumer inflation and a cooling labour market.

As a result, financial markets have reduced expectations of further policy tightening, with the implied probability of a Federal Reserve interest rate increase as early as July falling to around 10%.

Earnings season and AI remain in focus

Investors are also awaiting quarterly results from Taiwan Semiconductor Manufacturing Company (NYSE:TSM), widely viewed as a key indicator of demand across the semiconductor and artificial intelligence industries.

The update is expected to provide further insight into the durability of global investment in AI infrastructure as the second-quarter earnings season gathers pace.

Analysts currently expect companies within the STOXX 600 to deliver earnings growth of approximately 14.5% year over year, representing the strongest rate of profit growth in more than three years. However, much of that increase is being driven by a sharp rise in energy sector earnings following higher oil prices linked to geopolitical tensions.

Excluding oil and gas companies, underlying earnings growth across European businesses is expected to be closer to 5.5%, with investors closely monitoring management commentary on profit margins and artificial intelligence-related investment.

Movers

Among individual stocks, Rotork (LSE:ROR) surged 65% after ABB agreed to acquire the engineering company in a US$5.5 billion deal.

Partners Group (LSE:PEY) fell 7% following the release of its quarterly results.

Frasers Group (LSE:FRAS) declined 5% after reporting annual results that fell short of profit expectations.

The FTSE 100 traded lower on Thursday as escalating tensions between the United States and Iran overshadowed better-than-expected UK economic data, while investors continued to assess the potential impact of disruption to global energy markets.

The FTSE 100 fell 0.37% by 07:25 GMT, extending the previous session’s losses. Elsewhere in Europe, Germany’s DAX declined 0.22% and France’s CAC 40 slipped 0.21%. Sterling was little changed against the US dollar at $1.3535.

UK economy grows faster than expected

Fresh figures from the Office for National Statistics showed the UK economy expanded more strongly than forecast.

Gross domestic product increased 0.7% over the three months to May, comfortably ahead of economists’ expectations for 0.5% growth. Annual GDP growth accelerated to 1.3%, marking the fastest pace in 13 months.

On a monthly basis, the economy grew 0.1% in May after contracting 0.1% in April, with the services sector providing the main support through a 0.3% increase in output.

Iran tensions continue to dominate market sentiment

Despite the encouraging economic data, geopolitical developments remained the primary focus for investors.

A spokesman for Iran’s military headquarters warned that “all infrastructure in the region” would be “crushed under the steel blows” of Iran’s armed forces if the United States proceeded with threats to target Iranian infrastructure. The comments followed remarks by US President Donald Trump, who warned on Wednesday that Washington would “knock out all their power plants… all their bridges” unless Tehran returned to negotiations.

Military activity intensified overnight as US forces reportedly carried out strikes around Tehran and in Semnan province, while Iran responded with missile and drone attacks targeting Bahrain, Jordan and Kuwait. Iran’s Revolutionary Guard said it had struck a US base in Jordan following what it described as an American attack near a children’s cancer hospital in Ahvaz.

Strait of Hormuz concerns keep investors cautious

Strategists continued to warn that tensions around the Strait of Hormuz could remain elevated for an extended period.

Jefferies strategist Mohit Kumar said shipping through the vital energy corridor “has slowed down significantly,” adding that Iran currently appears unwilling to negotiate.

Kumar said the latest escalation differs from previous confrontations, which had been “meant as an objective to gain an upper hand in negotiations and to eventually de-escalate the situation,” arguing Iran is unlikely to “give up its claim of sovereignty over the Strait that easily” and that he was “doubtful whether there is a unified leadership in Iran that can take that decision.”

Jefferies said it was “keeping risk levels low” while continuing to expect “eventually we will get a deal even if it’s a fudge,” although the firm believes the current standoff could continue “for a few weeks,” leaving oil prices under continued upward pressure.

Meanwhile, US Vice President JD Vance described the recent attacks as part of a “delicate diplomatic dance” during an interview with Joe Rogan, while President Trump said separately, “We’ll find out whether or not we settle with them or we just finish it off.”

Commodities and corporate news

Brent crude slipped 0.38% to US$84.63 per barrel, while West Texas Intermediate eased 0.08% to US$79.54. Gold futures fell 0.55% to US$4,029.27 an ounce, with spot gold down 0.88% at US$4,025.62.

Among UK-listed companies, Crest Nicholson (LSE:CRST) warned operating profit is likely to come in at the lower end of its FY2026 guidance and confirmed an extension to a key banking covenant waiver.

Ocado (LSE:OCDO) said it continues to pursue new retail partnerships in the United States while maintaining its target of becoming cash flow positive.

TotalEnergies (LSE:TTE) said higher oil and gas prices linked to Middle East tensions are expected to support second-quarter earnings.

Premier Foods (LSE:PFD) reported a 4% increase in first-quarter branded sales, helped by strong demand for its grocery and sweet treats portfolio.

Frasers Group (LSE:FRAS) declined to provide guidance for FY2027, citing uncertainty surrounding ongoing takeover activity involving Hugo Boss and Accent Group.

SSE (LSE:SSE) reaffirmed its earnings guidance after reporting higher investment across its electricity networks and stronger renewable generation, while also announcing the appointment of former National Grid chief executive John Pettigrew to its board.

FTSE 100 edges lower as Iran tensions offset UK GDP strength. Frasers posts stronger results, Foxtons cuts guidance and Brent crude rises.

Market Overview

The FTSE 100 opened marginally lower, while Germany’s DAX also slipped and the Euronext 100 was broadly unchanged. Overnight, US markets finished higher, with both the Nasdaq and S&P 500 extending gains. Investors balanced stronger-than-expected UK GDP data against continuing tensions surrounding Iran, while higher oil prices and geopolitical uncertainty kept risk appetite in check.

Commodity markets reflected the cautious tone. Brent crude continued to strengthen as concerns over potential disruption to global oil supplies supported prices, while gold was unchanged and copper edged lower. Natural gas was little changed, Bitcoin was broadly flat against sterling, and major currency pairs versus the pound showed only modest moves.

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Market Numbers

FTSE 100: Down (-0.01%), 10,514.96

Euronext 100: Up (+0.00%), 1,915.62

DAX: Down (-0.37%), 24,908.18

NASDAQ: Up, 26,269.23

S&P 500: Up, 7,572.40

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In the Headlines

Strong results – Frasers Group (LSE:FRAS)

Frasers Group reported higher revenue and improved retail profitability as international expansion continued to gather pace. The update highlights continued momentum in its Sports Direct-led growth strategy and reinforces management’s focus on expanding the business across overseas markets.

Guidance cut – Foxtons (LSE:FOXT)

Foxtons reduced its profit guidance after warning that lettings reforms and a weaker housing market are weighing on trading conditions. The update points to ongoing pressure on the UK property sector despite the group’s efforts to manage costs and maintain operational resilience.

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Currencies (vs GBP)

USD: Down (-0.05%), $1.3539

CHF: Down (-0.05%), Fr.1.0895

EUR: Unchanged (0.00%), €1.1804

JPY: Down (-0.01%), ¥219.431

AUD: Unchanged (0.00%), $1.932

Bitcoin (BTC/GBP): Down, £47,421.03

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Commodities

Copper: Down

Gold: Unchanged

Brent Crude: Up

Natural Gas: Unchanged

U.S. stock futures traded higher on Wednesday after another encouraging inflation report strengthened hopes that the Federal Reserve may not need to raise interest rates in the near term. Investors, however, remained cautious as rising oil prices and escalating tensions in the Middle East continued to cloud the broader outlook.

Producer prices fall more than expected

Markets reacted positively after the U.S. Labor Department reported that producer prices declined by 0.3 percent in June, exceeding expectations for a 0.1 percent decrease.

The annual producer inflation rate also slowed to 5.5 percent from a revised 6.0 percent in May, adding to evidence that inflationary pressures may be easing.

The figures followed Tuesday’s weaker-than-expected consumer inflation report, reinforcing expectations that the Federal Reserve could adopt a more patient approach to monetary policy.

Rising oil prices limit optimism

Despite the softer inflation data, gains across equity futures remained measured as crude oil prices continued to climb.

During an interview with Fox News, President Donald Trump warned that further military action against Iran remained possible.

“unless they get to the table and negotiate.”

Higher energy prices have raised concerns that inflation could prove more persistent, potentially delaying any future reduction in interest rates.

Technology stocks lead Wall Street higher

U.S. markets closed higher on Tuesday, led by gains in technology shares.

The Nasdaq Composite climbed 0.9 percent, while the S&P 500 added 0.4 percent. The Dow Jones Industrial Average finished only slightly higher after being weighed down by a sharp decline in IBM (NYSE:IBM).

IBM falls while chip stocks rebound

IBM shares plunged more than 25 percent after the company released preliminary quarterly results that disappointed investors.

Meanwhile, semiconductor stocks recovered strongly, with the Philadelphia Semiconductor Index rising 2.5 percent and the NYSE Arca Computer Hardware Index gaining 2.7 percent.

Steel, networking and gold-related shares also posted solid gains, while healthcare, pharmaceutical and airline stocks underperformed.

Investors are continuing to monitor incoming economic data and geopolitical developments for further direction.

European equity markets were little changed on Wednesday as investors balanced another round of encouraging corporate earnings against rising geopolitical risks in the Middle East.

Government bond yields across the euro area remained close to multi-year highs amid concerns that tensions between the United States and Iran could escalate further, keeping investors cautious despite several positive company updates.

Major indices remain under pressure

Germany’s DAX declined 0.6 percent, while the UK’s FTSE 100 slipped 0.1 percent. France’s CAC 40 traded broadly flat during the session.

ASML leads technology sector higher

ASML Holding (EU:ASML) was among the strongest performers after the Dutch semiconductor equipment manufacturer raised its annual sales guidance for the second time this year, reflecting continued strength in artificial intelligence-related investment.

Corporate earnings drive individual movers

Dr. Martens (LSE:DOCS) advanced after reaffirming its full-year outlook ahead of its annual general meeting.

Hunting (LSE:HTG) also posted solid gains after reporting resilient first-half trading and maintaining its 2026 guidance.

Norwegian oil producer Aker BP (FTSE:SSAK) moved higher following stronger-than-expected second-quarter results.

Luxury goods group Richemont (TG:RITN) rallied after quarterly sales exceeded expectations, supported by robust demand for its jewellery division.

Retail and mining stocks lag

B&M European Value Retail (LSE:BME) came under pressure after reporting modest first-quarter sales growth.

Mining group Antofagasta (LSE:ANTO) also traded lower after reporting a 9.5 percent decline in first-half copper production.

Meanwhile, Delivery Hero (TG:DHER) lost ground after confirming it is in advanced discussions with Uber Technologies regarding a potential takeover proposal.

U.S. equity futures traded slightly higher on Wednesday after inflation data came in below expectations, easing concerns over additional Federal Reserve interest rate increases. Investors also continued to monitor a busy earnings season, with strong results from ASML (EU:ASML) reinforcing optimism around artificial intelligence investment, while geopolitical tensions between the United States and Iran remained firmly in focus.

Inflation data supports technology shares

S&P 500 futures gained 0.2 percent in early trading, Nasdaq 100 futures advanced 0.6 percent and Dow Jones futures slipped 0.1 percent.

The latest inflation report suggested price pressures are continuing to moderate, reducing expectations that the Federal Reserve will tighten monetary policy further in the near term. The softer inflation outlook provided support for growth sectors, particularly technology stocks, which are highly sensitive to interest rate expectations.

Trump signals continued pressure on Iran

Geopolitical uncertainty remained elevated after President Donald Trump said U.S. military operations against Iran would continue until Tehran agreed to negotiate.

Speaking to Fox News, Trump said discussions had taken place with Iranian officials but warned that military action would continue.

“They better make a deal,” he said, adding that Iran would otherwise, “not have anything left.”

Although Trump abandoned plans to introduce a shipping protection fee for vessels passing through the Strait of Hormuz, investors remain alert to any escalation that could disrupt global oil supplies and revive inflation concerns.

ASML highlights ongoing AI investment

ASML (EU:ASML) raised its full-year outlook after reporting second-quarter results that exceeded expectations.

The company now forecasts annual revenue of between 43 billion euros and 45 billion euros after second-quarter sales reached 9.33 billion euros.

The results suggest semiconductor manufacturers continue to invest heavily in artificial intelligence infrastructure, providing further support for companies supplying advanced chipmaking equipment.

IBM underlines changing technology spending

IBM (NYSE:IBM) remained under pressure after warning that customer spending is increasingly shifting towards artificial intelligence infrastructure instead of traditional software.

The sharp decline in IBM shares highlighted the growing divergence between companies benefiting from AI investment and those facing slower demand for legacy technology products.

Investors await more earnings

Attention now turns to another busy session of earnings releases, with BNY (NYSE:BNY), BlackRock (NYSE:BLK), Morgan Stanley (NYSE:MS) and United Airlines (NASDAQ:UAL) all scheduled to report.

The latest earnings updates are expected to provide fresh insight into corporate profitability, consumer demand and the broader outlook for the U.S. economy.