ADVFN UK Market News

Category: Top Story

  • European stocks fall as oil prices and bond yields rise: DAX, CAC, FTSE100

    European stocks fall as oil prices and bond yields rise: DAX, CAC, FTSE100

    European equity markets moved lower on Tuesday as higher oil prices and rising government bond yields increased investor attention on inflation and the outlook for interest rates.

    Sovereign borrowing costs rose across Europe as a global bond sell-off continued. Germany’s 30-year government bond yield reached a fresh 15-year high, while the equivalent French yield climbed to its highest level since 2008.

    Investors were assessing developments in the Middle East while awaiting U.S. labour market data later this week for further indications on the Federal Reserve’s monetary policy outlook.

    Higher energy prices have also increased expectations for tighter monetary policy in Europe. Markets are assessing the possibility of a 25-basis-point interest-rate increase from the European Central Bank at its September 9-10 meeting, although the ECB has not yet made its decision.

    DAX leads declines across European markets

    Germany’s DAX fell 1%, while the UK’s FTSE 100 declined 0.6% and France’s CAC 40 was down 0.2%.

    In London, Ashtead Technology Holdings (LSE:AT.) shares fell after the subsea equipment rental specialist reported a 7% decline in first-half EBITA.

    Frasers (LSE:FRAS) also traded lower after the retailer announced that it was reviewing its support for Hugo Boss supervisory board Chair Stephan Sturm.

    AstraZeneca (LSE:AZN) declined despite reporting positive high-level results from the SANOVO Phase III trial in China.

    Advertising group WPP (LSE:WPP) also moved lower following an announcement that it plans to eliminate up to 1,000 additional positions by the end of 2026.

    Elsewhere, Partners Group Holding (TG:P2H) shares fell after the Swiss private equity firm replaced chief executive David Layton following disruption affecting its funds.

    Energy shares rise as Brent approaches $92

    Energy companies were among the areas of the market moving higher as Brent crude approached $92 a barrel.

    TotalEnergies (EU:TTE), BP Plc (LSE:BP.) and Shell (LSE:SHEL) gained as investors continued to assess the potential for prolonged disruption to energy flows through the Strait of Hormuz.

    Higher crude prices can support revenue expectations for oil producers, although individual share-price movements can reflect multiple company-specific and market factors.

    German fragrance, flavour and beauty ingredients company Symrise (TG:SY1) also advanced after agreeing to sell AmeriTerpenes LLC, its terpene ingredients business, to private equity investor Mutares SE & Co. KGaA.

    European markets remained focused on movements in government bond yields, energy prices and developments in the Middle East, alongside upcoming U.S. labour market data and expectations for monetary policy on both sides of the Atlantic.

  • Reckitt shares rise 4.3% following Mead Johnson court verdict and J.P. Morgan upgrade

    Reckitt shares rise 4.3% following Mead Johnson court verdict and J.P. Morgan upgrade

    Reckitt Benckiser Group (LSE:RKT) shares gained 4.3% on Tuesday after a U.S. jury found in favour of its Mead Johnson unit in litigation concerning its Enfamil preterm infant formula.

    The case alleged that the formula caused necrotizing enterocolitis (NEC), a serious bowel disease. A unanimous jury in the U.S. District Court for the Northern District of Illinois sided with Mead Johnson.

    The trial was the first bellwether case involving Mead Johnson in the federal multidistrict NEC litigation. Reckitt said there are currently no outstanding jury verdicts against Mead Johnson across the broader NEC litigation.

    J.P. Morgan upgrades Reckitt to overweight

    The court decision coincided with an upgrade from J.P. Morgan, which raised its rating on Reckitt to “overweight” from “neutral”.

    The brokerage said attention could increasingly turn towards the valuation of Reckitt’s core operations and the outlook for Mead Johnson.

    J.P. Morgan analyst Celine Pannuti commented, “We see rising prospects for resolution on NEC litigation following Abbott’s partial settlement of some NEC cases, which makes the potential for a resolution closer than feared, along with the elimination of the overhang for Reckitt should allow the market to refocus on the core valuation.”

    The comments followed Abbott’s partial settlement of some NEC cases, which J.P. Morgan cited in assessing the prospects for a broader resolution of the litigation.

    Reckitt continues to assess baby formula business

    Reckitt has been considering options for its baby formula operations as the business remains affected by NEC-related litigation.

    The company has also been concentrating its portfolio around its core brands. Last year, Reckitt sold a majority stake in its Essential Home business to private equity firm Advent for $4.8 billion.

    The infant formula lawsuits have remained a factor for investors in recent months, with Reckitt facing multiple claims relating to its products.

  • U.S. stock futures little changed as oil and global bond yields remain in focus: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. stock futures little changed as oil and global bond yields remain in focus: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. equity futures traded close to unchanged levels early Tuesday as markets monitored the outlook for interest rates, higher crude prices and renewed military activity involving the United States and Iran.

    Investors were also assessing a rise in Japanese government bond yields ahead of several U.S. economic releases, including labour market and manufacturing data.

    Wall Street futures flat ahead of economic releases

    At 03:40 ET, futures linked to the S&P 500, Nasdaq 100 and Dow were broadly unchanged.

    The moves followed declines on Wall Street in the previous session, when higher U.S. Treasury yields and rising oil prices formed part of the market backdrop.

    Attention is turning towards Friday’s nonfarm payrolls report, which will provide another measure of U.S. labour market conditions ahead of the Federal Reserve’s September policy decision.

    Tuesday’s calendar includes the July Job Openings and Labor Turnover Survey and the ISM manufacturing index.

    Japanese 10-year yield moves above 3%

    Japan’s benchmark 10-year government bond yield climbed above 3% on Tuesday, reaching that level for the first time since September 1996.

    The yield has more than tripled since 2024 as the Bank of Japan has shifted away from its previous ultra-loose monetary policy.

    Investors are also monitoring the effect of higher energy costs on Japanese inflation and the potential implications for future Bank of Japan interest rate decisions.

    Higher yields on Japanese government debt could affect the relative attractiveness of overseas assets for domestic investors, although the extent of any resulting changes to investment allocations remains uncertain.

    Brent trades above $91 as markets monitor Strait of Hormuz

    Crude prices extended their gains on Tuesday amid continued military exchanges involving the United States and Iran.

    At 01:02 ET, Brent crude futures were 1.1% higher at $91.51 per barrel, while WTI futures rose 1.4% to $86.99. Both benchmarks had advanced nearly 3% in the previous session.

    The latest developments followed U.S. strikes against Iranian military targets on Larak Island and subsequent Iranian missile attacks on U.S. military facilities in Jordan.

    President Donald Trump has also raised the possibility of further military action against Iran.

    Markets are monitoring the developments for their potential effect on energy supplies and shipping through the Strait of Hormuz.

    Tanker incident adds to shipping concerns

    The Strait of Hormuz remains a focus because of the volume of crude oil and petroleum products transported through the waterway.

    According to the United Kingdom Maritime Trade Operations agency, a tanker was struck by three unidentified projectiles while leaving the strait on Monday.

    The duration and scale of any disruption to commercial shipping remain uncertain. Any sustained reduction in energy shipments through the waterway could affect global oil supplies and prices.

    Higher energy prices could also contribute to inflation through transportation, production and consumer energy costs.

    U.S. labour and manufacturing data in focus

    Investors will receive the July JOLTS job openings report and ISM manufacturing index later Tuesday.

    Federal Reserve Governor Michael Barr is also scheduled to speak.

    Markets are assessing the possibility of another interest rate increase after Federal Reserve Chair Kevin Warsh recently adopted a more hawkish tone.

    Tuesday’s releases and Friday’s nonfarm payrolls report will provide additional economic information ahead of the Federal Reserve’s September interest rate decision.

  • European stocks trade flat as bond yields rise and Middle East conflict continues: DAX, CAC, FTSE100

    European stocks trade flat as bond yields rise and Middle East conflict continues: DAX, CAC, FTSE100

    European equities were broadly unchanged on Tuesday as investors assessed higher global bond yields, developments in the Middle East and economic data scheduled for release later in the day.

    The pan-European STOXX 600 traded flat, while Germany’s DAX declined 0.6% and France’s CAC 40 gained 0.1%. London’s FTSE 100 fell 0.4%.

    Energy producers benefited from higher commodity prices, while other sectors traded lower amid rising sovereign borrowing costs and concerns about the potential inflationary effects of higher energy prices.

    Japanese government bond yields reach generational high

    Fixed-income markets remained a focus after the yield on Japan’s benchmark 10-year government bond rose to its highest level in a generation.

    U.S. Treasury and European sovereign bond yields also increased as investors adjusted interest-rate expectations amid inflation concerns and government debt issuance.

    Higher yields affected rate-sensitive sectors including technology, real estate and high-dividend utilities, as investors assessed the impact of higher discount rates on equity valuations.

    Markets assess further U.S.-Iran military exchanges

    Geopolitical developments also remained in focus following further military exchanges involving the United States and Iran.

    Iran launched overnight missile strikes targeting two U.S. military bases in Jordan following U.S. strikes against Iranian targets earlier in the week.

    U.S. President Donald Trump subsequently raised the possibility of additional military action against Iranian infrastructure.

    Energy commodity prices increased as markets assessed the potential impact of continued military activity on supplies and commercial shipping through the Strait of Hormuz.

    Eurozone inflation and U.S. JOLTS data awaited

    Investors were also awaiting August eurozone Consumer Price Index data, with the figures expected to provide further information on underlying inflation ahead of the European Central Bank’s policy meeting next week.

    Market participants were assessing the possibility of another 25-basis-point interest rate increase from the ECB, although the decision remains subject to incoming economic data and the central bank’s assessment.

    In the United States, the July Job Openings and Labor Turnover Survey is also due, providing additional information on labour market conditions ahead of Friday’s nonfarm payrolls report and the Federal Reserve’s September policy decision.

    Across regional markets, industrial, automobile and consumer stocks were among the areas facing pressure. The FTSE 100 recorded a smaller decline than Germany’s DAX, with energy and mining companies accounting for a substantial proportion of the UK benchmark.

  • Market Open: Alien Metals Funding, Futura Medical Partner

    Market Open: Alien Metals Funding, Futura Medical Partner

    FTSE opens flat as bond and Middle East risks weigh, while Alien Metals secures exploration funding and Brent crude moves higher.

    Market Overview

    The FTSE 100 opened broadly unchanged at 10,824.60, as London markets returned from the bank holiday amid pressure from a global bond sell-off and renewed Middle East tensions. The Euronext 100 gained 0.06 per cent to 1,916.51, while Germany’s DAX fell 0.29 per cent to 26,181.16. In the US, the Nasdaq closed lower at 26,370.89 and the S&P 500 declined to 7,686.14. Higher borrowing costs and renewed geopolitical concerns weighed on broader risk appetite.

    Commodity markets reflected renewed concerns over Middle East supply disruption, with Brent crude moving higher alongside copper, gold and natural gas. Bitcoin was unchanged against sterling. The US dollar, Swiss franc, euro and Japanese yen weakened marginally versus the pound, while the Australian dollar strengthened slightly. Oil markets remained focused on renewed US-Iran fighting and risks to shipping through the Strait of Hormuz.

    Market Numbers

    FTSE 100: Up (0.001%), 10,824.60
    Euronext 100: Up (0.06%), 1,916.51
    DAX: Down (-0.29%), 26,181.16
    NASDAQ: Down, 26,370.89
    S&P 500: Down, 7,686.14

    In the Headlines

    Exploration funding – Alien Metals (LSE:UFO)
    Alien Metals’ joint venture partner West Coast Silver has secured commitments to raise A$6 million for further exploration at the Elizabeth Hill Silver Project. The funding supports additional drilling and technical work while Alien retains its 30% free-carried project interest and equity exposure to West Coast Silver.

    New U.S. partner – Futura Medical (LSE:FUM)
    Futura Medical reported first-half revenue of £1.62 million and appointed Market Performance Group as its new U.S. commercial partner for Eroxon. The consumer healthcare company is reshaping its U.S. commercial strategy while seeking further funding and partnerships to support its operations and product pipeline.

    Currencies (vs GBP)

    USD: Down (-0.01%), $1.3549
    CHF: Down (0.00%), Fr.1.0952
    EUR: Down (0.00%), €1.1662
    JPY: Down (0.00%), ¥216.443
    AUD: Up (0.00%), $1.8894
    Bitcoin (BTC/GBP): Unchanged, £58,067.58

    Commodities

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

  • London stocks fall as bond yields rise and Middle East conflict continues: FTSE100

    London stocks fall as bond yields rise and Middle East conflict continues: FTSE100

    UK equities traded lower on Tuesday as London markets reopened following the bank holiday weekend, with investors assessing higher global bond yields, developments in the Middle East and domestic shop price inflation data.

    The FTSE 100 fell 0.3% to around 10,798 points, following declines across European equity markets during Monday’s session, when UK markets were closed.

    Higher oil prices provided some support for energy companies including Shell and BP, while housebuilders, consumer stocks and mining companies traded lower.

    Global bond yields move higher

    Moves in fixed-income markets formed part of the backdrop for Tuesday’s equity trading, with the benchmark 10-year Japanese government bond yield reaching a generational high.

    U.S. Treasury and European borrowing costs also increased following comments from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium on Friday.

    Higher bond yields can affect the relative valuation of equities by increasing the returns available on fixed-income assets and raising borrowing costs.

    Brent crude approaches $91 amid Middle East developments

    Investors were also monitoring developments involving the U.S. and Iran following military exchanges over the extended weekend.

    U.S. forces carried out strikes against Iranian rocket launchers on Larak Island in the Strait of Hormuz, followed by Iranian missile strikes against U.S. military bases in Jordan.

    Brent crude moved towards $91 per barrel as markets assessed the potential impact of the conflict on shipping through the Strait of Hormuz.

    The increase in oil prices supported shares of some energy companies while adding to market attention on the potential effect of higher energy costs on inflation.

    Bunzl gains following half-year results

    Among individual London-listed companies, Bunzl (LSE:BNZL) rose 1.8% after the distribution and services group reported its half-year financial results.

    The company was among the gainers in a session in which the FTSE 100 traded moderately lower.

  • Ashtead Technology reports lower first-half earnings as revenue rises 1.1%

    Ashtead Technology reports lower first-half earnings as revenue rises 1.1%

    Ashtead Technology (LSE:AT.) reported revenue of £100.2 million for the first half of 2026, up 1.1% from £99.1 million a year earlier and 1.7% higher at constant currency.

    Growth in Europe was partly offset by previously reported disruption in the Middle East and lower offshore renewables activity in Asia. Revenue from oil and gas increased 1.9%, while renewables revenue declined 1.6%.

    Adjusted EBITA fell 7.3% to £25.1 million from £27.0 million, with the adjusted EBITA margin decreasing to 25.0% from 27.3%. The company attributed the change to revenue mix and higher depreciation following recent capital expenditure.

    Profit before tax declines to £17.5 million

    Operating profit decreased 5.9% to £21.8 million, while profit before tax declined 1.5% to £17.5 million.

    Adjusted basic earnings per share were 20.6p, down 5.9% from 21.9p in the corresponding period.

    Return on invested capital declined to 20.5% from 24.2%, a reduction of 369 basis points. The company said the return remained above its cost of capital.

    Net debt falls to £116.7 million

    Ashtead Technology reported net debt of £116.7 million, compared with £131.9 million previously, while leverage decreased to 1.4 times from 1.7 times.

    The company expects leverage to be approximately 1.3 times by the end of 2026.

    Ashtead said its addressable market is projected to grow at a compound annual growth rate of 6% to $3.4 billion by 2029, supported by customer backlogs and its pipeline of potential opportunities.

    “The company remains well positioned to navigate near-term market headwinds arising from the current geopolitical situation in the Middle East and continues to position itself to capture the longer-term opportunities as they arise,” Ashtead said in the release.

  • Helium One reports extension of Galactica-Pegasus helium offtake agreement

    Helium One reports extension of Galactica-Pegasus helium offtake agreement

    Helium One Global (LSE:HE1) said the operator of its Galactica-Pegasus joint venture in Colorado has extended an existing helium purchase and sales agreement covering all helium production from the Pinon Canyon Plant.

    The agreement has been extended through the end of the first quarter of 2027, with pricing fixed in line with current U.S. market conditions. The company did not provide specific pricing information in the supplied material.

    The extension provides an offtake arrangement for production during the period while discussions regarding a longer-term agreement continue.

    Additional helium tube trailers delivered

    Helium One also reported the delivery of a fourth helium tube trailer, while a fifth trailer is being filled.

    Initial wells at Galactica-Pegasus were connected for first gas in late 2025, and additional wells are being brought onstream for helium and CO2 production.

    Helium One holds a 50% interest in the Galactica-Pegasus project, providing the company with exposure to production from the Colorado development.

    Rukwa project holds granted mining licence

    Alongside its U.S. activities, Helium One is progressing its southern Rukwa Project in Tanzania.

    The project has received a mining licence following an extended well test, with the company advancing its activities from exploration and appraisal towards development.

    Helium One Global is a helium exploration and development company with projects in Tanzania and the United States. Its portfolio includes the southern Rukwa Project and its 50% interest in the Galactica-Pegasus project in Colorado.

  • Bunzl raises 2026 outlook and announces £500 million share buyback

    Bunzl raises 2026 outlook and announces £500 million share buyback

    Bunzl (LSE:BNZL) reported first-half 2026 revenue of £5.93 billion, an increase of 2.9% at constant exchange rates, while adjusted operating profit rose 8.0%.

    The international distribution and services group reported an operating margin of 7.3% for the period. Revenue growth was supported by volumes and inflation, particularly in North America, while all of the group’s regions recorded underlying revenue growth.

    Bunzl said warehouse efficiencies and increased use of digital channels also contributed to profitability during the period.

    Bunzl updates full-year guidance

    Following its first-half performance, Bunzl raised its outlook for 2026. The company now expects modest underlying revenue growth for the full year, with margins anticipated to be broadly unchanged compared with the previous year.

    The group also announced a £500 million share buyback, which it plans to fund from cash generation and its existing balance sheet capacity.

    Bunzl reported that leverage remains at a level that allows it to pursue its capital allocation plans.

    Acquisition activity expected to increase in second half

    Bunzl completed two acquisitions during the period and said it expects acquisition activity to increase during the second half of 2026.

    The group continues to prioritise bolt-on acquisitions as part of its capital allocation strategy, alongside dividends and share buybacks.

    Bunzl plc is an international distribution and services group supplying non-food consumables including packaging, cleaning and hygiene products, safety equipment and healthcare supplies.

    The company operates across North America, Europe, the UK and Ireland, and other international markets. Its activities include distribution, own-brand products and digital ordering services for business customers.

  • Alien Metals partner West Coast Silver raises A$6 million for Elizabeth Hill exploration

    Alien Metals partner West Coast Silver raises A$6 million for Elizabeth Hill exploration

    Alien Metals’ (LSE:UFO) joint venture partner West Coast Silver has received firm commitments to raise A$6 million through a placement to institutional and professional investors.

    The proceeds are expected to fund additional exploration at the Elizabeth Hill Silver Project in Western Australia, including further drilling, technical studies and work towards an updated mineral resource.

    Alien Metals retains a 30% free-carried interest in Elizabeth Hill and holds an 8.7% equity interest in West Coast Silver. Under the free-carried arrangement, Alien is not required to contribute to the near-term exploration expenditure covered by its carried interest.

    Placement expected to complete in early September

    West Coast Silver’s placement was priced at a 13.8% discount to its 15-day volume-weighted average price.

    Participants include Admiralty Resource Fund, alongside other institutional and professional investors. Completion of the financing is expected in early September 2026.

    The funding will also allow West Coast Silver to bring forward exploration programmes at the Elizabeth Hill South and Elizabeth Hill West areas.

    Funding supports expanded exploration programme

    The A$6 million financing provides West Coast Silver with additional capital to undertake drilling and technical work across the Elizabeth Hill project while Alien maintains its joint venture and equity interests.

    Alien Metals Limited is a London AIM-quoted mineral exploration and development company with a portfolio of assets in Australia.

    Its interests include the Georgina Basin iron oxide copper-gold project in the Northern Territory and interests in the Munni Munni PGM system and Elizabeth Hill Silver Project in Western Australia. The company holds some of its project exposure through joint ventures and equity investments.