Category: Top Story

European equity markets staged a strong recovery on Monday after opening the session with steep losses.

The U.K.’s FTSE 100 Index edged up 0.1%, while France’s CAC 40 climbed 1.3% and Germany’s DAX advanced 1.7%.

The rebound followed comments from U.S. President Donald Trump, who stepped back from earlier threats to “obliterate” Iran’s power plants if the country failed to reopen the Strait of Hormuz.

In a post on Truth Social, Trump said the United States and Iran had engaged in “very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East.”

He added that he had instructed the War Department to delay any planned military strikes against Iran’s power plants and energy infrastructure for five days.

Earlier, the president had warned that the U.S. would “obliterate” Iranian power plants if Tehran did not reopen the Strait of Hormuz within 48 hours, and he had also suggested he was not interested in negotiating with Iran.

Iran responded by warning it would target energy and water infrastructure across the Gulf if Washington carried out the threatened strikes.

Oil prices fell sharply following Trump’s latest comments. However, Iran’s official Fars news agency later reported that Tehran was not involved in any direct talks with the United States, either directly or through intermediaries.

Among individual companies, shares of Metall Zug Group (LSE:0QLX) dropped sharply after the Swiss medical device manufacturer suspended its dividend following a loss in fiscal 2025 caused by one-off charges and weaker net sales.

Steelmaker Salzgitter (TG:SZG) also moved significantly lower after reporting a pre-tax loss of €28 million for 2025.

French food company Danone (EU:BN) declined after announcing an agreement to acquire U.K.-based fortified drinks producer Huel.

Meanwhile, Delivery Hero (TG:DHER) surged after the German online food delivery group agreed to sell its Taiwan delivery business to Grab Holdings for $600 million, with the proceeds earmarked for debt reduction.

European equities started Monday on a weaker footing as investors assessed an ultimatum from U.S. President Donald Trump urging Iran to reopen the Strait of Hormuz.

By 08:00 GMT, the pan-European Stoxx 600 had declined 1.3%, while Germany’s DAX dropped 2.0%, France’s CAC 40 lost 1.6%, and the UK’s FTSE 100 slipped 1.3%.

Markets in Europe followed a negative lead from Asia, where shares also moved lower. Many Asian economies depend heavily on energy imports from the Gulf region, leaving them particularly exposed to potential supply disruptions.

“Escalation in the war remains bad news for asset markets,” said Thomas Mathews, Head of Markets, Asia Pacific, at Capital Economics.

As the joint U.S.-Israeli offensive against Iran enters its fourth week, a new wave of strikes on Tehran has reportedly caused widespread power outages across the capital.

Attention remains focused on the Strait of Hormuz, the strategic shipping route south of Iran through which roughly 20% of global oil supply passes. Ship traffic through the strait has been largely halted due to fears of Iranian attacks, while container shipping operators have struggled to secure insurance coverage for voyages through the area.

Trump has warned that the United States could strike key Iranian power infrastructure if Tehran does not reopen the strait by Monday night. Iran rejected the demand, stating the passage would remain “completely closed” if its energy facilities come under attack.

Oil markets have reacted sharply to the risk of prolonged disruption. Brent crude, the global benchmark, has surged as traders price in the possibility of reduced supplies from the Persian Gulf, one of the world’s most important energy-producing regions.

Brent futures for May were last up 1.7% at $114.10 per barrel, after settling at $112.19 on Friday. Prior to the outbreak of the conflict in Iran, Brent had been trading at around $70 per barrel.

Europe could also face significant energy pressures, as the region imports substantial volumes of natural gas from the Gulf, particularly Qatar. A major gas production facility in the country was recently struck during Iranian attacks on regional targets, pushing European natural gas prices sharply higher.

Last week, the European Central Bank warned that a prolonged conflict could revive inflationary pressures that had largely subsided before fighting began in late February. The ECB said policymakers are prepared to adjust interest rates if necessary, prompting speculation that borrowing costs could rise again in the coming months.

UK equities began the week under pressure as geopolitical concerns weighed on markets, after U.S. President Donald Trump issued a 48-hour deadline regarding Hormuz while Iran responded with only a limited reopening to neutral vessels.

By 08:10 GMT, the benchmark FTSE 100 had declined 1.5%, while the GBP/USD exchange rate weakened 0.3% to $1.3306. Across Europe, Germany’s DAX dropped 1.9%, and France’s CAC 40 slipped 1.5%.

UK round up

Shares in Applied Nutrition PLC (LSE:APN) fell more than 16% in early Monday trading after the UK supplements maker cautioned that sales volumes in the Middle East could soften due to the conflict involving Iran, although it kept its full-year revenue outlook unchanged.

British Prime Minister Keir Starmer on Monday denounced the overnight burning of ambulances serving London’s Jewish community as a disturbing antisemitic incident, stressing that such hatred has no place in society.

“This is a deeply shocking antisemitic arson attack,” Starmer said in a post on X. “My thoughts are with the Jewish community who are waking up this morning to this horrific news. Antisemitism has no place in our society.”

Starmer is expected to meet with senior ministers, including Rachel Reeves, Yvette Cooper and Ed Miliband, as well as Bank of England Governor Andrew Bailey, to discuss the economic impact of the unfolding crisis, according to the Treasury.

European equity markets declined sharply on Thursday after Brent crude climbed above $115 per barrel following Iranian strikes on energy infrastructure in the Middle East.

Key energy sites across the region have increasingly become targets as the conflict between Iran and the U.S.-Israeli alliance moves into its 19th day.

On the economic front, the Bank of England’s Monetary Policy Committee voted “unanimously” to leave its benchmark interest rate unchanged at 3.75 percent.

Data from the Office for National Statistics showed that the U.K. unemployment rate held steady while wage growth slowed in the three months ending in January.

The unemployment rate remained at 5.2 percent during the November-to-January period. Job vacancies fell by 6,000 to 721,000 compared with the previous three-month period ending in November.

Across the region’s major markets, Germany’s DAX Index dropped 2.9 percent, Britain’s FTSE 100 Index fell 2.7 percent and France’s CAC 40 Index declined 2.2 percent.

Banking shares were among the biggest losers, with Commerzbank (TG:CBK), Deutsche Bank (TG:DBK), BNP Paribas (EU:BNP) and Barclays (LSE:BARC) all registering notable declines.

German kitchen equipment maker Rational AG (TG:RAA) also slid after reporting lower fourth-quarter profit due to currency-related pressures.

Real estate company Vonovia (TG:VNA) moved lower as well after announcing a decline in full-year revenue.

Meanwhile, specialty chemicals producer Lanxess (TG:LXS) dropped sharply after reporting a wider net loss for the fourth quarter and unveiling additional cost-cutting measures planned for 2026.

European equity markets opened in negative territory on Thursday as investors remained cautious ahead of several major central bank interest rate announcements while closely following geopolitical developments in the Middle East.

At 08:17 GMT, the pan-European Stoxx 600 index was down 1.2%. Germany’s DAX declined 1.6%, France’s CAC 40 fell 1.1%, and the UK’s FTSE 100 slipped 1.2%.

Market attention is focused on policy decisions expected later in the day from the European Central Bank and the Bank of England. Investors are looking for clues from policymakers on how the ongoing conflict involving Iran could affect economic conditions across Europe.

Both the ECB and the BoE are widely expected to keep interest rates unchanged, following a similar stance taken by several other major central banks on Wednesday. The Federal Reserve, the Bank of Japan and the Bank of Canada all opted to hold rates steady, although they warned that inflationary pressures could increase if the joint U.S.–Israeli military action against Iran evolves into a prolonged conflict.

Central banks now face the delicate challenge of managing inflation risks without undermining economic growth — a situation reminiscent of the energy shock triggered by Russia’s full-scale invasion of Ukraine in 2022.

As a result, concerns about stagflation, characterized by weak economic activity combined with elevated inflation, have intensified. Investors have responded by adopting a more defensive stance, scaling back expectations for near-term interest rate cuts, reducing exposure to equities and increasing allocations to the U.S. dollar.

Oil climbs above $110 per barrel

Oil markets also extended their rally, with Brent crude, the global benchmark, rising above $110 per barrel.

The latest jump followed Iranian attacks on energy infrastructure in the Middle East, including facilities linked to the strategically important South Pars gas field.

“Supply risks continue to grow in energy markets amid an escalation in attacks on Persian Gulf energy infrastructure,” analysts at ING said in a note.

By 06:59 GMT, Brent crude futures had surged 6.0% to $113.74 per barrel, while U.S. West Texas Intermediate crude was up 1.0% at $96.26 per barrel. WTI has recently traded at its widest discount to Brent in more than ten years, partly due to releases from the U.S. strategic petroleum reserve.

UK equities moved lower on Thursday ahead of the Bank of England’s interest rate decision, while oil prices surged as tensions in the Middle East intensified. Brent crude climbed to about $114 per barrel, heightening investor concerns about inflation and global economic stability. The latest UK labour data showed unemployment holding steady while wage growth slowed to around 3.9%.

At 08:32 GMT, the benchmark FTSE 100 index was down 1.6%. Meanwhile, the British pound edged slightly higher against the dollar, with GBP/USD rising 0.01% to 1.3258.

Elsewhere in Europe, markets were also under pressure. Germany’s DAX dropped 2.03%, while France’s CAC 40 declined by 1.5%.

Global market developments

Federal Reserve Chair Jerome Powell delivered a relatively hawkish message, indicating that inflation must decline further before policymakers consider cutting interest rates. His remarks dampened expectations for a near-term shift toward monetary easing.

In Asia, the Bank of Japan left its interest rates unchanged overnight, although one policymaker dissented from the decision.

Both the European Central Bank and the Bank of England are widely expected to keep interest rates unchanged later on Thursday. Such decisions would extend the broader pause in policy adjustments among major global central banks after several institutions also held rates steady earlier in the week.

Middle East developments

Geopolitical risks intensified after Israel launched a strike on Iran’s South Pars gas field. Iran responded by targeting energy infrastructure in Qatar and the United Arab Emirates.

Tehran also warned that energy facilities in other Gulf countries could become targets for additional retaliatory actions, raising fears of wider disruption in global energy markets.

UK corporate updates

LSL Property Services (LSE:LSL) reported underlying operating profit of £32.6 million for fiscal 2025, slightly above analysts’ expectations of £32.2 million. The company reiterated its outlook for further profit growth in 2026, reporting a return on capital employed of 35% and net cash of £27.8 million. It also declared a total dividend of 11.4 pence per share and previously announced a £12 million share buyback programme in January.

DFS Furniture plc (LSE:DFS) reaffirmed its full-year profit guidance of £43–50 million, despite noting weaker customer traffic recently due to adverse weather conditions. The retailer reported first-half revenue of £547.7 million, an 8.6% increase year on year, while pre-tax profit rose 82% to £31 million.

Eurocell (LSE:ECEL) posted preliminary 2025 revenue growth of 13%, largely driven by its acquisition of Alunet. Adjusted operating profit rose 6% during the year, though adjusted pre-tax profit declined 5% to £19 million as a result of higher financing costs.

Central Asia Metals (LSE:CAML) reported revenue of $229.9 million for 2025, exceeding the consensus estimate of $224.9 million from analysts. However, the company recorded a net loss after booking a $117.8 million impairment charge at its Sasa mine. Adjusted free cash flow reached $56 million and EBITDA totalled $101.8 million, representing a 44% margin.

Capital Ltd (LSE:CAPD) reported a sharp increase in annual profitability, with net profit after tax jumping 318% to $71 million in 2025. Revenue slipped slightly by 0.6%, while adjusted EBITDA rose 1.1% as the company continued expanding its mining services and investment portfolio.