Category: Top Story

U.S. equity futures declined ahead of Thursday’s opening bell, with technology stocks accounting for much of the anticipated weakness following quarterly earnings announcements. Alphabet shares fell sharply in premarket trading, while investors also reviewed fresh U.S. economic data and the Federal Reserve’s latest interest rate decision.

Nasdaq 100 futures dropped 1.3%, reversing the direction of Wednesday’s modest gains across the major Wall Street indices.

Alphabet (NASDAQ:GOOG) declined 11.1% before the opening bell after reporting negative free cash flow and quarterly revenue below expectations. Caterpillar (NYSE:CAT) also fell despite exceeding earnings forecasts, while Microsoft (NASDAQ:MSFT) gained after publishing better-than-expected fiscal first-quarter results.

Nasdaq 100 Futures Decline as Technology Stocks Face Selling Pressure

U.S. stock futures indicated that Wall Street could begin Thursday’s session in negative territory, following a relatively subdued performance during the previous trading day.

Nasdaq 100 futures fell 1.3%, with the technology sector affected by market reactions to recent corporate earnings announcements.

Investors were examining the financial effects of spending on artificial intelligence infrastructure, particularly the amount of capital required to support expanding computing capacity.

Alphabet’s quarterly figures brought renewed attention to those expenditures and their implications for cash flow.

The technology sector’s performance contributed to the broader decline in U.S. equity futures ahead of the opening bell.

Alphabet Shares Fall Following Negative Free Cash Flow

Google parent Alphabet (NASDAQ:GOOG) recorded an 11.1% decline in premarket trading following the release of its third-quarter financial results.

The company reported negative free cash flow, while its revenue performance was described as falling short of expectations in the market report.

The results drew attention to the company’s expenditure on artificial intelligence infrastructure and the financial requirements associated with expanding its technology operations.

Investors were assessing how those investments affected cash generation during the reporting period.

Alphabet’s decline contributed to the downward movement in technology-focused index futures.

Caterpillar Drops Despite Exceeding Quarterly Forecasts

Caterpillar (NYSE:CAT) shares declined 11.7% in premarket trading after the construction and mining equipment manufacturer released its third-quarter results.

The company reported both earnings and revenue above analysts’ expectations.

Nevertheless, its shares fell ahead of the regular session, demonstrating a divergence between the reported financial performance and the immediate market response.

No additional explanation for the decline was provided in the source report.

Microsoft Gains After Fiscal First-Quarter Earnings

Microsoft (NASDAQ:MSFT) shares advanced 2% before the opening bell after the software company reported fiscal first-quarter results above market expectations.

The increase contrasted with the premarket declines recorded by Alphabet and Caterpillar.

Microsoft’s results were released after Wednesday’s closing bell, alongside Alphabet’s earnings announcement.

The contrasting share price movements showed how investors responded differently to the companies’ latest financial reports.

September Inflation Figures Match Market Estimates

U.S. equity futures remained lower after the Commerce Department released its latest consumer price data.

The report showed that consumer prices increased in September in line with economists’ forecasts.

The figures followed the Federal Reserve’s decision to maintain its benchmark interest rate and provided additional information about inflation conditions.

Price developments remain relevant to the central bank’s assessment of monetary policy and its stated objective of returning inflation to 2%.

U.S. Economic Expansion Exceeds Third-Quarter Expectations

A separate Commerce Department publication indicated that economic growth exceeded economists’ forecasts during the third quarter of 2026.

The figures covered economic activity between July and September.

The stronger-than-expected growth reading was released alongside the inflation data, providing investors with two additional indicators of the U.S. economy’s performance.

Stock index futures continued to trade lower following the reports.

Dow, S&P 500 and Nasdaq Finish Wednesday Higher

Wall Street’s major indices recorded modest gains on Wednesday, although trading was relatively quiet for much of the session.

The Dow Jones Industrial Average gained 97.53 points, or 0.2%, closing at 52,475.10.

The S&P 500 increased by 21.38 points, equivalent to 0.3%, and finished at 7,743.98.

The Nasdaq Composite rose 72.04 points, or 0.3%, ending the day at 26,549.85.

The advances followed gains during the preceding two sessions.

Investors had largely avoided substantial moves ahead of the earnings releases from Alphabet and Microsoft after the close.

Federal Reserve Leaves Benchmark Rate Unchanged

The Federal Reserve maintained the target range for the federal funds rate at 3.75% to 4.00% following its latest monetary policy meeting.

The decision was widely anticipated and reflected the central bank’s objectives of supporting maximum employment and achieving inflation of 2% over the longer term.

Two policymakers opposed the decision.

Fed Governor Lisa Cook and Cleveland Federal Reserve President Beth Hammack favoured an additional quarter-point interest rate increase rather than keeping rates unchanged.

Their dissent contrasted with the previous month’s unanimous decision to increase the benchmark rate by 25 basis points.

Fed Statement Highlights Elevated Inflation

The Federal Reserve acknowledged in its accompanying statement that inflation remained above its desired level.

The central bank indicated that additional information would help policymakers determine the appropriate interest rate setting to support a return to its 2% inflation objective.

It also stated that it “will deliver price stability.”

The comments accompanied the decision to leave rates unchanged, with future policy decisions remaining dependent on economic developments.

The Fed’s next scheduled meeting will take place on December 8–9.

At the time of the report, CME Group’s FedWatch Tool indicated an 85.0% probability of a 25-basis-point increase at that meeting.

The probability represented market expectations rather than a confirmed policy decision.

Biotechnology and Semiconductor Shares Outperform on Wednesday

Some sectors posted larger gains than the main U.S. indices during Wednesday’s session.

Biotechnology stocks advanced, lifting the NYSE Arca Biotechnology Index by 2.1%.

Semiconductor shares also moved higher, with the Philadelphia Semiconductor Index gaining 1.8%.

The increases occurred as investors evaluated company earnings and developments affecting technology-related businesses.

Their performance contrasted with declines in transportation and other interest rate-sensitive sectors.

Transportation Stocks Retreat as Housing and Utilities Weaken

The transportation sector recorded a decline during Wednesday’s trading.

The Dow Jones Transportation Average lost 2.5%, following a session in which it had reached its highest closing level in more than a month.

Housing-related and utility stocks also moved lower.

Both sectors are affected by borrowing costs and changes in financing conditions, making interest rate expectations an important factor in their trading performance.

The sector declines occurred despite the modest increases recorded by the Dow, S&P 500 and Nasdaq Composite.

Corporate Earnings and Federal Reserve Outlook Remain in Focus

U.S. stock futures suggested a lower opening on Thursday as investors considered quarterly results from major companies and new information about the economy.

Alphabet’s 11.1% premarket decline and the 1.3% fall in Nasdaq 100 futures highlighted the pressure on technology stocks, while Microsoft’s gains provided a contrasting reaction to earnings news.

Economic growth and inflation data also remained relevant following the Federal Reserve’s decision to hold its benchmark interest rate steady.

The central bank’s December 8–9 meeting will provide the next scheduled opportunity for policymakers to review interest rates, with investors monitoring incoming economic information ahead of that decision.

European stock markets moved higher on Thursday, with major regional indices recording gains after the U.S. Federal Reserve left interest rates unchanged. Investors assessed the central bank’s decision alongside quarterly earnings announcements from European and international companies.

The Federal Reserve maintained its benchmark interest rate despite continuing inflation pressures. The decision was broadly in line with market expectations, although Fed Governor Lisa Cook and Cleveland Federal Reserve President Beth Hammack dissented.

Corporate earnings also remained in focus, including results from Samsung Electronics (USOTC:SSNHZ), Alphabet (NASDAQ:GOOG) and Microsoft (NASDAQ:MSFT), as investors evaluated developments in technology spending, artificial intelligence and corporate profitability.

Major European Indices Record Gains

The UK’s FTSE 100 advanced 0.5%, while Germany’s DAX gained 0.9%. France’s CAC 40 rose 1%, recording the largest percentage increase among the three indices.

The gains followed the Federal Reserve’s decision to maintain interest rates, with market participants continuing to assess the implications of U.S. monetary policy for global financial conditions.

Individual share price movements across Europe were also influenced by quarterly financial results, changes to earnings forecasts and announcements concerning shareholder distributions.

Repsol Announces €950 Million Share Buyback

Shares of Spanish energy company Repsol (TG:REP) advanced after the group announced a new €950 million share repurchase programme.

The announcement followed a substantial increase in third-quarter profit.

The buyback represents an additional shareholder distribution measure, while the company’s latest financial results provided information about its performance during the reporting period.

Technip Energies Exceeds Core Profit Expectations

French engineering and technology company Technip Energies (EU:TE) recorded a share price increase after reporting third-quarter core profit above analysts’ expectations.

However, quarterly revenue fell short of market forecasts.

The results presented a difference between the company’s profitability performance and its reported revenue, with investors assessing both measures following the announcement.

Renault Reports Higher Third-Quarter Revenue

Shares of French automaker Renault (EU:RNO) advanced after the company reported a 1.4% increase in third-quarter revenue.

The result exceeded analysts’ expectations.

The announcement provided an update on Renault’s revenue performance during the period, contributing to trading activity in European automotive shares.

Shell Raises Quarterly Share Buyback to $5 Billion

Shell (LSE:SHEL) shares moved higher after the energy group increased its quarterly share repurchase programme to $5 billion.

The company also reported that third-quarter adjusted earnings had nearly doubled compared with the corresponding period a year earlier.

Shell cited record refining margins during the quarter.

The earnings figures and revised buyback programme were among the developments investors considered following the company’s results announcement.

WPP Reports Revenue Growth and Maintains Annual Outlook

Advertising and communications group WPP (LSE:WPP) recorded a share price increase after reporting year-on-year revenue growth during the third quarter.

The company also reaffirmed its financial outlook for the full year.

The announcement provided information about WPP’s latest trading performance and indicated that management had not changed its existing annual expectations.

Adidas Raises Full-Year Profit Forecast

Shares of German sportswear manufacturer Adidas (TG:ADS) advanced after the company reported record results for the third quarter of 2026.

Adidas also increased its full-year profit outlook.

The revised guidance followed the company’s quarterly performance and provided an updated indication of management’s expectations for annual profitability.

Lloyds Banking Shares Decline Following Quarterly Results

Lloyds Banking Group (LSE:LLOY) shares moved lower following the publication of its third-quarter financial results.

The bank’s results were described as subdued, and its shares declined while the broader UK equity market advanced.

The announcement contributed to differences in performance among financial stocks during the session.

Glencore Falls After Maintaining Production Guidance

Commodities group Glencore (LSE:GLEN) recorded a decline in its share price after reaffirming its production guidance for the full year 2026.

The company did not announce a change to its existing production targets.

The unchanged guidance was among the information investors assessed during trading, although the announcement did not provide a revised production forecast.

Vonovia Shares Retreat Following Reduction in 2028 Targets

German residential property group Vonovia (TG:VNA) declined after lowering its financial targets for 2028.

The revision represented a change to the company’s longer-term expectations.

The announcement contributed to share price weakness in Vonovia despite gains in the broader German equity market.

Investors Assess Monetary Policy and Corporate Outlooks

European equity trading reflected the combination of the Federal Reserve’s interest rate decision and a series of company-specific developments.

Share repurchase announcements from Repsol and Shell accompanied quarterly earnings reports, while revised profit forecasts from Adidas and longer-term target changes from Vonovia influenced individual stocks.

Investors will continue to monitor monetary policy developments, inflation indicators and corporate earnings as companies provide further information about their financial performance and outlooks.

US equity futures moved in different directions on Thursday following quarterly earnings announcements from major technology companies and the Federal Reserve’s decision to maintain interest rates.

Nasdaq futures fell 1.3% and S&P 500 futures declined 0.5%, while Dow Jones futures gained 0.3%.

Alphabet shares dropped more than 10% before the opening bell after reporting results below expectations. Microsoft advanced following higher-than-forecast revenue and adjusted earnings, while Samsung Electronics declined after its semiconductor business missed profit estimates.

Investors were also considering comments from Federal Reserve Chair Kevin Warsh on the sensitivity of artificial intelligence investment to borrowing costs.

US Stock Futures Diverge Following Previous Session’s Gains

At 04:03 ET (08:03 GMT), Nasdaq futures were lower by 400 points, representing a decline of 1.3%.

S&P 500 futures lost 36 points, or 0.5%, while Dow Jones futures rose 150 points, equivalent to 0.3%.

The movements followed a positive session for the major US stock indices on Wednesday, when renewed demand for artificial intelligence-related shares contributed to market gains.

Several financing agreements and corporate earnings releases had supported technology stocks. Oracle’s commitment to restrict fundraising through fiscal 2030 was another development monitored by investors.

By Thursday morning, however, market attention had shifted toward the financial implications of large-scale AI investment.

Deutsche Bank analysts identified a more cautious attitude toward technology shares as “the main theme in markets”.

Alphabet Shares Lose More Than 10% Before Market Open

Alphabet (NASDAQ:GOOG) declined more than 10% in premarket trading after the Google parent published third-quarter financial results that fell short of analyst expectations.

Deutsche Bank analysts characterised the figures as “underwhelming results”.

Revenue from Google’s services operations was a principal factor behind the earnings shortfall.

Advertising revenue growth also slowed to its lowest level in five quarters.

During the earnings conference call, Alphabet executives discussed increased use of Google’s “AI Mode” search functionality.

Management indicated that revenue generated from searches using the AI feature was increasing more slowly than revenue from conventional search queries.

The difference drew attention to Alphabet’s ability to generate revenue from its expanding AI services.

Alphabet Reports $51.4 Billion in Capital Expenditure

Alphabet’s capital expenditure increased by $6.5 billion from the preceding quarter to $51.4 billion.

The higher investment spending coincided with a further decline in free cash flow, which remained negative.

Alphabet has been expanding its artificial intelligence computing capacity and related infrastructure as part of its broader technology investment programme.

The latest figures provided investors with information about the scale of spending required to support those operations.

The relationship between AI-related revenue and capital expenditure remained a subject of market attention following the earnings announcement.

Microsoft Revenue Reaches $92.28 Billion as Azure Expands 48%

Microsoft (NASDAQ:MSFT) shares rose in premarket trading after the software and cloud computing company reported financial results above consensus forecasts.

First-quarter fiscal revenue increased 19% to $92.28 billion.

Adjusted earnings per share reached $4.89, exceeding analyst expectations.

Azure, Microsoft’s cloud computing business, recorded revenue growth of 48%.

The division’s performance contributed to the company’s overall revenue increase as enterprise demand for cloud services continued.

Deutsche Bank analysts nevertheless said Microsoft’s results were “insufficient to brighten the overall gloomy tech mood this morning.”

Microsoft Offers Voluntary Employee Buyouts

Microsoft also announced a programme offering voluntary separation packages to eligible employees.

The Wall Street Journal reported that approximately 60,000 workers could qualify for the offer.

Microsoft employed 223,000 people at the end of June.

The programme was announced alongside the company’s continued investment in cloud computing and artificial intelligence infrastructure.

The supplied report did not specify the expected cost of the employee buyout initiative.

Samsung Shares Fall After Semiconductor Earnings Miss

Samsung Electronics (USOTC:SSNHZ) declined more than 4% in South Korean trading after reporting operating profit from its semiconductor division below analyst forecasts.

The share price movement followed gains earlier in the year.

Samsung also did not announce additional details concerning a potential shareholder return programme.

At the group level, the company recorded its fourth consecutive quarter of record income.

Total operating profit reached 100 trillion won, approximately $74.52 billion.

The consolidated result contrasted with the semiconductor division’s performance relative to market expectations.

Samsung Memory Chip Orders Cover Next Year’s Supply

Samsung executives said the company’s planned memory chip supply for the following year had already been fully booked.

Demand was associated with the expansion of artificial intelligence computing infrastructure and the components required to operate advanced AI systems.

Samsung supplies memory chips to Nvidia and other companies involved in AI hardware and infrastructure.

Management also indicated that constraints in the memory chip market could continue over the next several years.

According to Samsung, these supply conditions could lead to further increases in memory chip prices.

The comments provided additional context for the company’s semiconductor operations despite the division’s profit falling short of forecasts.

Warsh Questions Whether AI Investment Is Insulated From Higher Rates

Federal Reserve Chair Kevin Warsh discussed the potential influence of interest rates on artificial intelligence investment following Wednesday’s monetary policy announcement.

The Fed maintained its benchmark interest rates at their existing levels.

Warsh referred to an argument that AI projects might be relatively unaffected by higher borrowing costs because investors expected different levels of returns from the technology.

He described the argument that tighter monetary policy was “not going to have any effect on AI because the returns that investors are expecting are so different,” but said he had been “skeptical of that view.”

He added:

“Interest rates get in the cracks. Interest rates affect, directly or indirectly, almost everything,”

The remarks came as AI companies increasingly accessed bond and equity markets to finance capital-intensive infrastructure projects.

This approach represents a change from relying primarily on internally generated cash flow.

December Federal Reserve Rate Outlook Remains Under Review

Investors were evaluating the possibility of further monetary policy tightening before the end of 2026.

Market expectations indicated that the Federal Reserve could raise interest rates again in December.

The central bank previously increased borrowing costs in September, its first rate increase since 2023.

Changes in interest rates affect the financing environment for businesses undertaking large capital expenditure programmes.

The Fed chair’s comments therefore added to the discussion of how monetary policy could influence technology sector investment.

Further Technology Earnings and ECB Decision Awaited

Amazon and Intel were scheduled to publish their quarterly results after the US stock market closed on Thursday.

Their announcements were due to follow earnings releases from Alphabet, Microsoft and Samsung Electronics.

Investors were monitoring corporate spending plans, cloud computing demand, semiconductor supply and the financial returns associated with artificial intelligence infrastructure.

The European Central Bank’s interest rate decision was another scheduled event for Thursday, adding to the monetary policy developments being assessed by global financial markets.

FTSE 100 gains as Lloyds reports stronger profits and Magnum raises its sales outlook. European stocks advance while Brent crude and gold decline.

Market Overview

The FTSE 100 opened at 10,694.02 before advancing 0.54 per cent to 10,752.02, as investors assessed the UK Budget and the Federal Reserve’s decision to hold interest rates. European markets also gained, with the Euronext 100 rising 0.25 per cent to 1,882.91 and Germany’s DAX advancing 0.38 per cent to 25,802.14 ahead of the European Central Bank’s policy announcement. Wall Street closed higher, with the Nasdaq reaching 26,549.85 and the S&P 500 finishing at 7,743.98, as investors awaited US inflation data.

Commodity markets were mixed, with copper and gold declining, while Brent crude edged lower as renewed hopes for Middle East peace negotiations offset concerns about regional supply disruptions. Natural gas also weakened. Sterling strengthened against the US dollar, Swiss franc and Japanese yen but lost ground against the euro and Australian dollar. Bitcoin declined against sterling. Investors continued to assess the implications of the UK Budget, central bank policy decisions and geopolitical developments for inflation and economic growth.

Market Numbers

FTSE 100: Up (+0.54%), 10,694.02
Euronext 100: Up (+0.25%), 1,882.91
DAX: Up (+0.38%), 25,802.14
NASDAQ: Up, 26,549.85
S&P 500: Up, 7,743.98

In the Headlines

Profit Growth – Lloyds Banking Group (LSE:LLOY)
Lloyds Banking Group reported a 42 per cent increase in nine-month statutory pretax profit to £6.63 billion, supported by higher interest income, lending growth and lower remediation charges. The bank maintained its full-year 2026 guidance, providing investors with reassurance about its earnings outlook.

Sales Growth – Magnum Ice Cream Company (LSE:MICC)
The Magnum Ice Cream Company reported 9.6 per cent organic sales growth in the third quarter, supported by stronger volumes, product innovation and market share gains. The ice cream producer raised its full-year organic sales growth outlook to approximately 5.5 per cent, reflecting improved trading momentum.

Currencies (vs GBP)

USD: Down (-0.08%), $1.3316
CHF: Down (-0.09%), Fr.1.1025
EUR: Up (+0.05%), €1.1952
JPY: Down (-0.06%), ¥210.242
AUD: Up (+0.16%), $1.8914
Bitcoin (BTC/GBP): Down (-1.58%), £60,028.90

Commodities

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

European stock markets showed limited movement on Thursday as investors awaited the European Central Bank’s interest rate decision, US inflation figures and further corporate earnings announcements. Trading followed the Federal Reserve’s decision to leave interest rates unchanged, while quarterly results from major technology companies produced differing market reactions.

The STOXX 600 index was little changed, while Germany’s DAX gained 0.2%. France’s CAC 40 advanced 0.6%, and London’s FTSE 100 rose 0.3%.

Market attention was focused on ECB President Christine Lagarde’s scheduled press conference, the release of September’s US Personal Consumption Expenditures (PCE) inflation data and earnings reports from Amazon and Intel due after the US market close.

European Markets Show Limited Movement

European equities traded within relatively narrow ranges during Thursday’s session as investors assessed monetary policy developments and company earnings.

The pan-European STOXX 600 index was unchanged, while Germany’s DAX increased 0.2%.

France’s CAC 40 recorded a gain of 0.6%, and the UK’s FTSE 100 advanced 0.3%.

The market movements came ahead of the ECB’s monetary policy announcement, with investors also monitoring the implications of the Federal Reserve’s latest interest rate decision.

Corporate earnings remained another factor influencing individual share prices across European exchanges.

ECB Expected to Keep Deposit Rate at 2.50%

The European Central Bank’s Governing Council was widely expected to maintain its deposit facility rate at 2.50%.

The anticipated decision follows interest rate increases in June and September, introduced in response to inflationary pressures associated with disruptions to energy supplies.

Market participants were also awaiting comments from ECB President Christine Lagarde concerning the outlook for monetary policy.

Crude oil prices remained above $100 per barrel, while European natural gas futures were trading near levels last recorded in 2022.

Against this backdrop, interest rate futures indicated an implied probability of approximately 80% that the ECB would increase rates by 25 basis points in December.

Investors were also assessing whether higher sovereign borrowing costs and tighter bank lending standards could influence the central bank’s assessment of the need for additional interest rate increases.

Federal Reserve Leaves Interest Rates Unchanged

The US Federal Open Market Committee maintained its federal funds target range at 3.75% to 4.00% following Wednesday’s policy meeting.

Federal Reserve Chair Kevin Warsh did not provide explicit guidance concerning the timing of future interest rate decisions.

The absence of a clear indication regarding subsequent policy adjustments left market participants assessing whether additional monetary tightening could follow.

The Federal Reserve’s announcement provided the immediate monetary policy backdrop for Thursday’s European trading session.

US Core PCE Inflation Expected to Rise 0.3%

Investors were awaiting the publication of the September US Personal Consumption Expenditures price index, a measure of inflation monitored by the Federal Reserve.

Analyst consensus estimates pointed to a 0.3% month-on-month increase in the core PCE index, which excludes food and energy prices.

This would compare with a 0.2% increase recorded in August.

The forthcoming data was expected to provide further information on US inflation trends following the Federal Reserve’s decision to maintain its current interest rate range.

Shell Shares Rise 2.6% Following Earnings

Shell (LSE:SHEL) shares gained 2.6% after the energy company reported net profit above market expectations.

The company also increased its share repurchase programme.

The earnings announcement contributed to the movement in Shell’s share price during the European trading session.

The increase contrasted with declines in several other major European companies reporting financial results.

Volkswagen Falls 1.6% After Decline in Operating Profit

Volkswagen (TG:VOW3) shares declined 1.6% following the publication of its financial results.

The German automotive manufacturer reported a 98.7% decrease in operating profit for the first nine months of the year.

The decline in reported profitability accompanied the fall in Volkswagen’s share price during Thursday’s session.

The company’s results formed part of a series of European corporate earnings announcements being assessed by investors.

Alphabet and Microsoft Results Draw Attention to Technology Spending

Recent earnings announcements from major US technology companies provided differing indications concerning artificial intelligence investment and cloud computing demand.

Alphabet (NASDAQ:GOOG) reported increased capital expenditure associated with artificial intelligence infrastructure.

The spending prompted market attention to the implications for free cash flow and the period required to generate returns on those investments.

Microsoft (NASDAQ:MSFT), meanwhile, reported results above market expectations, supported by increased cash generation and enterprise demand for its Azure cloud computing services.

The contrasting earnings reports provided context for upcoming results from Amazon and Intel, both scheduled for release after the US market close.

European Semiconductor Shares Decline

Several European semiconductor equipment manufacturers traded lower during Thursday’s session.

ASML (EU:ASM), ASM International (EU:ASML) and BE Semiconductor (EU:BESI) recorded share price declines ranging from 0.9% to 2%.

Investors were monitoring the companies in connection with spending on data centre infrastructure and semiconductor manufacturing equipment.

Statements from major US technology companies concerning capital expenditure and hardware procurement remained relevant to expectations for the European semiconductor sector.

STMicroelectronics (BIT:STMMI) also declined 2%, despite reporting third-quarter operating profit above market expectations.

The share price movements followed recent technology earnings announcements and preceded further financial reports from Amazon and Intel.

Monetary Policy and Corporate Earnings Remain in Focus

Thursday’s European trading session was characterised by limited index movements alongside individual share price reactions to earnings announcements.

Investors were awaiting the ECB’s interest rate decision and Christine Lagarde’s accompanying comments, while the September US core PCE inflation report was another scheduled economic release.

Further quarterly results from Amazon and Intel were due after the US market close, adding to the financial information being assessed across European and US equity markets.

The FTSE 100 advanced on Thursday as investors assessed the UK government’s latest Budget, the Federal Reserve’s decision to maintain interest rates and a series of corporate earnings announcements. Energy and defence stocks were among the gainers, while developments in the Middle East remained in focus.

At 08:28 GMT, London’s benchmark index was up 0.56%, alongside gains across major European markets. Germany’s DAX increased 0.46%, while France’s CAC 40 rose 0.84%.

Sterling declined 0.10% against the US dollar to $1.3316.

Shell Leads FTSE 100 Gains Following Third-Quarter Results

Shell (LSE:SHEL) rose 3.25%, leading gains on the FTSE 100 after reporting third-quarter adjusted earnings of $10.81 billion, its highest level since 2022.

The energy group also increased its quarterly share buyback programme to $5 billion, following higher refining margins and liquefied natural gas prices.

Defence companies also recorded gains following the government’s reaffirmation of its commitment to NATO defence spending equivalent to 3% by 2030.

BAE Systems (LSE:BA.) advanced 2.27%, while Babcock International (LSE:BAB) increased 1.78%.

UK Budget Includes Tax Changes and Revised Economic Forecasts

Chancellor John Healey outlined the government’s fiscal plans, including higher taxes on banks and betting companies.

“Fiscal discipline is my first commitment”, Healey said.

The Office for Budget Responsibility revised its UK economic growth forecasts, raising its projection for 2026 to 1.2% from 1.1%, while reducing its 2027 estimate to 1% from 1.5%.

The fiscal watchdog also forecast inflation of 3.1% in 2026 and 3.4% in 2027, with consumer price growth expected to return to the Bank of England’s 2% target in 2028, approximately one year later than projected in March.

Fiscal headroom against the government’s current budget rule was estimated at approximately £15 billion for 2029-30, compared with £23.6 billion in March.

ING said the Budget maintained a projected decline in the fiscal deficit to 3.4% of GDP in 2027, although it noted that defence funding questions remained unresolved.

The bank also said the fiscal measures had not complicated its expectations for a Bank of England interest rate increase next week.

ING Highlights Tax Thresholds and Government Financing Requirements

According to ING, the projected reduction in the fiscal deficit depends primarily on frozen income tax thresholds rather than changes to the bank levy.

The bank estimated that fiscal drag would account for the entire narrowing of the deficit next year.

ING also noted that the government’s gross financing requirement of £312 billion was below most market expectations.

The Budget included temporary energy support measures, comprising a reduction in VAT on electricity and a £100 rebate for certain households.

ING estimated that these measures would provide fiscal stimulus equivalent to approximately 0.2% of GDP this year and 0.1% in 2027.

The bank expects the measures to reduce near-term inflation by between 0.1 and 0.2 percentage points.

Federal Reserve Holds Interest Rates at 3.75%-4%

The US Federal Reserve maintained its benchmark interest rate range at 3.75% to 4% following Wednesday’s policy meeting.

The decision passed by a 10-2 vote, with Lisa Cook and Beth Hammack supporting an increase in rates.

ING said it continued to expect a rate increase in December, although it noted that Federal Reserve Chair Kevin Warsh had provided no specific guidance on the timing of future policy changes.

The bank also described Cook’s dissenting vote as unexpected.

Attention in Europe subsequently turned to the European Central Bank’s monetary policy announcement, scheduled for 13:15 GMT.

Middle East Developments Remain in Focus

Geopolitical developments continued to feature in financial markets following reports of another maritime incident in the Strait of Hormuz.

The United Kingdom Maritime Trade Operations organisation reported that a vessel was on fire following an apparent attack approximately 17 kilometres north of Khasab, Oman.

Iran has stated that the Strait of Hormuz will remain closed until Washington accepts its proposed seven-day plan.

US President Donald Trump said he had approved Vice President JD Vance’s outreach to Iran, explaining that “they need help with medical supplies and various things”.

Trump also denied reports that he had instructed officials to restart peace negotiations.

Iranian Foreign Minister Abbas Araghchi separately said Tehran was “in close and ongoing contact” with mediators.

The developments followed reports that Washington had advised Gulf allies to prepare for possible military strikes against Iran after Tuesday’s US midterm elections.

Oil and Gold Prices Decline

Oil prices moved lower during Thursday’s trading session.

Brent crude futures declined 1.1% to $110.40 per barrel, while US West Texas Intermediate futures fell 1.4% to $101.31 per barrel.

Precious metals also recorded declines.

Gold futures decreased 0.19% to $4,044.30 per ounce, while spot gold fell 0.86% to $4,032.02 per ounce.

The price movements occurred as investors monitored monetary policy developments and diplomatic activity involving the United States and Iran.

UK Corporate Roundup: TotalEnergies, WPP and Lloyds Banking Group

TotalEnergies (LSE:TTE) reported third-quarter adjusted net income of $9.1 billion, an increase of 127% compared with the corresponding period last year.

The result exceeded market expectations, with the energy company reporting higher refining margins and gas prices during the quarter.

Advertising group WPP (LSE:WPP) reported a 2.1% decline in third-quarter like-for-like revenue less pass-through costs.

The decrease was smaller than in the preceding quarter, while the company said its turnaround programme remained on schedule. WPP also maintained its full-year financial guidance.

Lloyds Banking Group (LSE:LLOY) reported third-quarter pretax profit of £2.3 billion, compared with £1 billion in the previous year.

The result was in line with market forecasts, and the banking group said it remained on course to achieve its annual financial targets.

More About the FTSE 100

The FTSE 100 is the principal benchmark index of the London Stock Exchange, comprising 100 of the largest qualifying companies by market capitalisation. Its performance reflects share-price movements across sectors including financial services, energy, healthcare, consumer goods and industrial businesses.

The index is monitored alongside UK economic indicators, corporate financial results, international monetary policy decisions and developments affecting global financial markets.