Category: Top Story

Shares of European airlines surged on Friday after Iran confirmed that the Strait of Hormuz had been reopened to commercial shipping.

EasyJet (LSE:EZJ) rose 7.1%, Wizz Air (LSE:WIZZ) advanced 7.9%, Lufthansa (TG:LHA) gained 5.8%, and Air France KLM (EU:AF) climbed 8%.

Iranian Foreign Minister Abbas Araghchi said in a post on X that the Strait of Hormuz is now fully accessible to commercial vessels for the remainder of the Lebanon ceasefire. Ships will follow a designated corridor coordinated by the Ports and Maritime Organisation of the Islamic Republic of Iran.

Following the news, WTI crude oil futures dropped around 11%, falling to just above $84 per barrel.

European equity markets showed a mixed trend on Friday as investors remained cautious ahead of possible weekend negotiations between the United States and Iran.

U.S. President Donald Trump signaled that a new round of discussions could take place soon, cautioning that hostilities might resume if an agreement is not reached.

Among major indices, the UK’s FTSE 100 slipped 0.1%, while France’s CAC 40 gained 0.6% and Germany’s DAX rose 0.7%.

Shares of Delivery Hero (TG:DHER) rallied strongly after Uber agreed to increase its stake in the German food delivery company by an additional 4.5%.

In London, DiscoverIE (LSE:DSCV) also advanced after the customized electronics group reported a sharp pickup in trading momentum during the fourth quarter in its pre-close update for the year ending March 2026.

On the downside, rail manufacturer Alstom (EU:ALO) fell significantly after scrapping its medium-term outlook.

Meanwhile, shares of Orange SA (EU:ORA) declined following news that a consortium including the French telecom group, Bouygues Telecom (EU:EN), and Free-iliad had submitted a bid and opened discussions with Altice France regarding a potential acquisition of SFR.

European equity markets traded cautiously on Friday, with investors remaining on the sidelines ahead of possible U.S.-Iran talks expected over the weekend.

As of 07:03 GMT, the pan-European Stoxx 600 slipped 0.1%, while the FTSE 100 also declined by 0.1%. Germany’s Dax was broadly flat, and France’s CAC 40 posted a modest gain of 0.2%.

U.S. President Donald Trump indicated that another round of face-to-face discussions with Iran could take place this weekend, following earlier talks that failed to secure a lasting ceasefire in the Middle East. He also suggested he may extend the current truce, set to expire later this month, if negotiations with Tehran show progress.

A potential breakthrough emerged on Thursday as a ceasefire between Israel and Lebanon came into force. However, despite the broader de-escalation efforts involving the U.S. and Iran, Israel has continued targeting Iran-backed Hezbollah forces in Lebanon.

Officials from both Israel and Lebanon confirmed the ceasefire, though Hezbollah has not formally endorsed it, stating it would act depending on “how developments unfold.”

Even so, Trump reiterated his view that the Iran conflict, which began in late February, could conclude in the near term.

Oil prices remained below $100 per barrel, as markets weighed the likelihood of a sustained peace agreement. Prices had briefly surged to around $120 per barrel following the outbreak of hostilities, compared with roughly $70 before the conflict.

On the corporate front, the European earnings season is gathering momentum. Shares in Ericsson (NASDAQ:ERIC) dropped more than 3% in early trading after the telecoms group reported first-quarter profit below expectations.

In contrast, Delivery Hero (TG:DHER) advanced over 2% after ride-hailing company Uber increased its stake in the German-based firm.

European equity markets posted modest gains on Thursday, supported by optimism that upcoming discussions between Iran and the United States could help ease tensions in the Middle East.

Reports suggest both sides are considering extending the current ceasefire by an additional two weeks to allow more time for negotiations.

Investors also reacted to a fresh wave of corporate earnings releases and newly published economic data across the region.

France’s CAC 40 rose 0.6%, while both the UK’s FTSE 100 and Germany’s DAX advanced by 0.7%.

In Frankfurt, Zalando climbed 3.2%, while SAP added around 2.3% and Brenntag gained nearly 2%. Beiersdorf, MTU Aero Engines and Heidelberg Materials also moved higher, rising between 1% and 1.3%.

On the downside, Qiagen, Merck, Deutsche Telekom, Mercedes-Benz, Daimler Truck Holding, BMW and Volkswagen declined between 0.5% and 1.6%.

In Paris, Dassault Systèmes gained 2.2%. Capgemini, Teleperformance, Saint-Gobain, Airbus, Publicis Groupe and Michelin rose between 1.2% and 2%.

Kering slipped 1.7%, while L’Oréal, ArcelorMittal, TotalEnergies and Engie also traded lower.

In London, Entain surged 7.5% after reaffirming its revenue outlook. Halma, B&M European Value Retail, Vistry Group, Frasers Group, JD Sports Fashion, Pershing Square Holdings, Rightmove and Persimmon posted gains of between 2% and 3.5%.

Tesco also jumped following strong sales and profit growth, alongside the announcement of a £500 million share buyback.

EasyJet fell about 5% amid ongoing uncertainty linked to the Middle East situation. Airtel Africa, Convatec Group, Unite Group, Vodafone and Antofagasta declined between 1.6% and 2%.

On the economic front, figures from the Office for National Statistics showed UK GDP expanded by 0.5% in February, exceeding the 0.1% growth recorded in January.

Economists had expected growth to remain at 0.1%. On an annual basis, the economy grew by 1% in February.

From a sector perspective, services—the largest part of the economy—rose 0.5%, while construction output increased by 1%.

Industrial production grew 0.5%, following declines of 0.1% in January and 0.4% in December. Manufacturing output, however, slipped 0.1%, reversing January’s 0.2% increase.

Year on year, industrial production fell 0.4%, while manufacturing output declined 0.5% in February.

Meanwhile, final data from Eurostat showed eurozone inflation rose more than initially estimated in March, reaching its highest level since mid-2024.

The harmonised consumer price index increased 2.6% year on year, revised up from an initial estimate of 2.5%, and compared with 1.9% growth in February.

European equities opened slightly higher on Thursday, following gains in global markets as investors remained optimistic about a potential resolution to the Iran conflict.

By 07:05 GMT, the pan-European Stoxx 600 was up 0.2%, while France’s CAC 40 rose 0.1% and the UK’s FTSE 100 gained 0.2%. Germany’s DAX, however, slipped marginally by 0.1%.

The Stoxx 600 is gradually recovering losses recorded since the escalation of the Iran conflict in late February. Even so, European markets have lagged behind Wall Street, with traders pointing to the region’s reliance on natural gas imports from Middle Eastern facilities affected by missile strikes. In contrast, the United States, as a net energy exporter, may be better shielded from the economic impact of the conflict.

Diplomatic efforts to secure a lasting ceasefire between the United States and Iran are ongoing, with a temporary two-week truce set to expire later this month.

According to the Wall Street Journal, Washington and Tehran have agreed in principle to resume negotiations after initial talks held last weekend in Pakistan failed to produce an immediate agreement. Officials familiar with the discussions indicated that no date or location has yet been confirmed.

The newspaper also reported that Vice President JD Vance is expected to lead the US delegation in any upcoming talks with Iran.

U.S. President Donald Trump has said that discussions between Israel and Lebanon are scheduled to take place later today. The Financial Times, citing Lebanese officials, reported that a ceasefire between the two sides, which have posed a risk to the broader US-Iran truce, could be reached “soon.”

Despite these developments, tensions persist, particularly over the ongoing US naval blockade of Iranian ports. A senior Iranian military official has warned Washington against continuing the blockade, while US Central Command maintains that no Iranian-linked vessels have managed to bypass it.

Oil prices edged higher, remaining below $100 per barrel but still significantly above pre-conflict levels, as markets assess the potential impact of a prolonged disruption in the Strait of Hormuz. The key shipping route off Iran’s southern coast has been largely inaccessible to tanker traffic for several weeks, tightening global energy supply and supporting crude prices.

Meanwhile, Europe’s earnings season is gathering pace, offering insight into how companies are navigating the challenges posed by the Iran conflict.

UK equities opened slightly higher on Thursday after stronger-than-expected GDP data for February, while investors continued to monitor developments סביב potential US-Iran ceasefire talks. Broader European markets were mixed, and the pound held steady against the dollar.

As of 07:05 GMT, the FTSE 100 rose 0.2%, while GBP/USD gained 0.07% to 1.3577. Germany’s DAX slipped 0.04%, and France’s CAC 40 added 0.1%.

UK Round-Up

Fresh data from the Office for National Statistics showed the UK economy expanded in February, beating analyst expectations. Growth came in above the 0.1% forecast by economists, following an upwardly revised 0.1% increase in January. The expansion was supported by broad-based gains, with services output rising 0.5% month on month, industrial production also up 0.5%, and construction output jumping 1.0% despite wet weather conditions.

Tesco PLC (LSE:TSCO) said ongoing uncertainty linked to the Middle East conflict has led it to widen its profit guidance for the 2026/27 financial year. The company expects adjusted operating profit to range between £3.0 billion and £3.3 billion, compared with £3.152 billion reported for 2025/26, slightly ahead of its prior targets.

Ashmore Group Plc (LSE:ASHM) reported a $1.8 billion reduction in assets under management during its fiscal third quarter, with total AUM falling to $50.7 billion as of March 31. The decline reflected an even split between net outflows and weaker investment performance, amid heightened geopolitical volatility.

Rentokil Initial PLC (LSE:RTO) delivered first-quarter organic growth of 3.4%, exceeding analyst expectations of 3.0%. Total revenue reached $1,677 million, up 4.3% year on year, supported by steady growth across pest control and hygiene services, particularly in North America.

Hays Plc (LSE:HAS) reported an 8% year-on-year decline in third-quarter like-for-like net fees, an improvement on the 10% drop recorded in the previous quarter. Performance was broadly in line with March trading trends, with the Rest of World segment contributing to the slight outperformance versus forecasts.

Schroders PLC (LSE:SDR) recorded £1.1 billion in client outflows during the first quarter of 2026, as geopolitical tensions weighed on investor sentiment. Assets under management stood at £814.4 billion at the end of the period, down from £823.7 billion at the close of 2025.