Category: Top Story

US stock futures indicated a lower open on Wednesday as Treasury yields and crude oil prices moved higher, following record closing levels for the Nasdaq and S&P 500 in the previous session.

The benchmark ten-year Treasury yield returned to its highest levels since 2002. Crude oil prices also rebounded from a one-month low amid renewed concerns about shipping in the Strait of Hormuz.

UK Maritime Trade Operations said nine attacks had been reported so far this month, compared with 18 across the Strait of Hormuz and Persian Gulf during September.

Separately, Yemen’s Houthi group said on X that it had carried out drone and ballistic missile attacks targeting airports and military installations in Saudi Arabia.

Markets Await Federal Reserve Meeting Minutes

Investors are awaiting minutes from the Federal Reserve’s latest monetary policy meeting, due later on Wednesday, for further information on policymakers’ views ahead of the central bank’s next interest rate decision.

CME Group’s FedWatch Tool indicated a 78.4% probability that the Fed would leave interest rates unchanged and a 21.6% probability of a quarter-point increase.

US equities advanced on Tuesday but finished below their session highs. The S&P 500 gained 44.98 points, or 0.6%, to close at 7,818.93, while the Nasdaq rose 122.48 points, or 0.5%, to 27,599.79. The Dow added 253.38 points, or 0.5%, to 51,521.28.

“The big bond market sell-off appeared to be yesterday’s news on Tuesday as the S&P 500 hit fresh record levels, supported by buoyant AI stocks,” said AJ Bell head of markets Dan Coatsworth.

“Expectation is already building ahead of the U.S. third-quarter earnings season, with numbers starting to filter their way into the market in the coming weeks,” Coatsworth added. “Perceived AI winners are likely to be under the spotlight, particularly given how dominant these companies now are in US indices.”

US Trade Gap Expands More Than Expected

The US trade deficit widened to $105.6 billion in August from a revised $92.8 billion in July, according to the Commerce Department. Economists had forecast a deficit of $99.0 billion.

Among Tuesday’s sector moves, the NYSE Arca Networking Index climbed 3.8% to its highest closing level in almost two months, while the NYSE Arca Airline Index gained 2.7%.

The Dow Jones Utility Average advanced 2.6%, while housing, telecommunications and retail stocks also moved higher. Biotechnology shares declined.

European shares moved mostly lower on Wednesday as investors assessed renewed tensions in the Middle East and fiscal concerns in France.

Brent crude futures traded above $101 a barrel following further attacks on vessels in the Persian Gulf region. German, French and Italian government bond yields also increased as attention returned to fiscal conditions.

The UK’s FTSE 100 fell 0.5%, while France’s CAC 40 declined 1.1% and Germany’s DAX dropped 1.2%.

German Industrial Production Rises 2%

German industrial production increased 2.0% month-on-month in August, reversing a 1.2% decline in July, according to Destatis. Economists had expected an increase of 0.5%.

On an annual basis, industrial production rose 2.3%, compared with a 1.8% decline in July.

In the UK, house prices were unchanged month-on-month in September after declining for the previous two months, according to data from Lloyds Banking Group. Prices fell 0.3% in August and 0.1% in July.

Pennon and Valerio Therapeutics Decline, Bridgepoint Rises

Pennon Group (LSE:PNN) shares fell after the water utility announced a £550 million rights issue and a 30% reduction in its dividend.

Valerio Therapeutics (EU:ALVIO) also declined after the clinical-stage biotechnology company reported a wider net loss for the first half of 2026.

Mersen (EU:MRN) shares moved lower despite the French electrical power and advanced materials company raising its annual outlook and reaffirming its medium-term targets for fiscal 2029.

Bridgepoint (LSE:BPT), meanwhile, rose after the alternative asset manager increased its 2026 profit guidance, raised its medium-term carried-interest targets and revised its dividend policy.

Shell (LSE:SHEL) shares also advanced after the company increased its third-quarter integrated gas production outlook.

British American Tobacco (LSE:BATS) moved higher after entering into a new agreement with Merrill Lynch International to conduct its share repurchase programme from October 13.

US equity futures edged lower on Wednesday ahead of the release of minutes from the Federal Reserve’s September meeting, while investors also assessed developments involving SpaceX and Constellation Brands and awaited results from Levi Strauss.

At 06:56 GMT, Dow futures were down 108 points, or 0.2%, while S&P 500 futures were broadly flat. Nasdaq 100 futures declined 28 points, or 0.1%.

Wall Street’s main indices finished slightly higher in the previous session but closed below their earlier intraday levels.

Government bond markets also remained in focus following recent selling in US and French debt. Benchmark 10-year yields moved higher, while Vital Knowledge analysts questioned whether “this asset class can sustain a material rally”, citing artificial intelligence investment and an expected “tidal wave” of debt issuance.

Oil prices initially declined before reversing course as markets continued to assess crude flows from the Middle East, shipping costs and supplies of refined products.

Fed September Meeting Minutes in Focus

The Federal Reserve is scheduled to publish minutes from its September policy meeting, when it increased interest rates for the first time since 2023.

Projections released alongside that decision indicated that further rate increases could follow before the end of the year as the central bank responds to inflation remaining above its 2% target.

Expectations for another increase at the Fed’s next meeting have since moderated. Comments from Fed officials have indicated a more cautious approach, while recent employment figures were weaker than expected.

Investors will examine the minutes for additional information about policymakers’ assessments of inflation, employment and the appropriate path for interest rates.

SpaceX Reportedly Plans $40 Billion Financing for Nvidia Chips

SpaceX (NASDAQ:SPCX) is seeking approximately $40 billion of financing to purchase Nvidia (NASDAQ:NVDA) chips, the Financial Times reported, citing people familiar with the plans.

According to the report, the financing could comprise around $10 billion of bank loans and $30 billion of investment-grade debt.

Apollo Global (NYSE:APO) is expected to lead the transaction and assist in marketing the debt. Pimco is also reportedly among a small group of potential lenders.

The proposed financing would fund purchases of computing equipment for artificial intelligence infrastructure. Elon Musk has previously said SpaceX plans to use Nvidia chips exclusively in its Colossus data centres.

Constellation Brands Falls Despite Earnings Beat

Constellation Brands (NYSE:STZ) shares moved lower in after-hours trading despite second-quarter sales and adjusted earnings exceeding market forecasts.

Net sales increased 6% to $2.63 billion in the quarter ended August 31, while adjusted earnings per share were $3.74. Both figures exceeded Wall Street expectations based on LSEG data cited by Reuters.

Beer depletions declined 0.6%, which TD Cowen analysts said was 70 basis points below expectations.

The company maintained its full-year financial guidance. TD Cowen said the outlook implies second-half sales “will be down [roughly] 2% at the midpoint.”

Constellation also completed its acquisition of vodka-based ready-to-drink beverage company SpikedAde. It will initially pay $75 million, with potential additional payments of up to $278 million over five years.

Levi Strauss Earnings Scheduled After Closing Bell

Levi Strauss (NYSE:LEVI) is scheduled to release its results after the market closes.

The shares have declined more than 1% since the start of the year, despite the company raising its full-year profit forecast in July.

Chief Executive Michelle Gass said at the time that Levi Strauss was seeking to address a “sizable premium segment” it had not previously reached. The company has also expanded its direct-to-consumer business and introduced looser-fitting products aimed at younger customers.

FTSE 100 opens flat as bond yields weigh, while Shell flags higher refining margins, Hollywood Bowl posts record revenue and Bitcoin falls.

Market Overview

The FTSE 100 opened broadly flat but slightly higher at 10,542.18, up 0.001 per cent from its previous close, as rising US government bond yields and weakness among mining stocks weighed on sentiment. The Euronext 100 slipped 0.07 per cent, while Germany’s DAX fell 0.88 per cent as European equities faced renewed oil supply concerns and caution ahead of Federal Reserve minutes. On Wall Street, the Nasdaq closed higher at 27,599.89, while the S&P 500 also advanced to 7,818.93.

Commodity markets were mixed, with copper and gold lower, natural gas higher and Brent crude edging down despite continued focus on supply risks from storms and Middle East tensions. Bitcoin weakened against sterling. The US dollar, Swiss franc and Japanese yen strengthened against the pound, while the euro and Australian dollar weakened.

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Market Numbers

FTSE 100: Higher (+0.001%), 10,542.18
Euronext 100: Lower (-0.07%), 1,882.29
DAX: Lower (-0.88%), 25,225.22
NASDAQ: Higher, 27,599.89
S&P 500: Higher, 7,818.93

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In the Headlines

Higher refining margins – Shell (LSE:SHEL)
Shell expects its indicative refining margin to rise to around $42 per barrel in the third quarter, while upstream production is forecast to remain broadly stable. Net debt is expected to increase following the ARC Resources acquisition, putting the balance sheet alongside improved refining economics in focus.

Record annual revenue – Hollywood Bowl Group (LSE:BOWL)
Hollywood Bowl reported record FY26 revenue of £261.6 million, up 4.3%, with growth across its UK and Canadian operations. The leisure group expects adjusted profit before tax growth to remain in line with market expectations as it continues expanding its centre estate.

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Currencies (vs GBP)

USD: Higher (+0.14%), $1.3248
CHF: Higher (+0.15%), Fr.1.1027
EUR: Lower (-0.19%), €1.1812
JPY: Higher (+0.12%), ¥209.7415
AUD: Lower (-0.01%), $1.9006
Bitcoin (BTC/GBP): Lower, £63,587.70

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Commodities

Copper: Lower
Gold: Lower
Brent Crude: Lower
Natural Gas: Higher

The FTSE 100 traded lower on Wednesday as global government bond yields rose and mining shares declined alongside metals prices.

The UK benchmark was down 0.36% as of 07:21 GMT. Elsewhere in Europe, Germany’s DAX fell 0.83%, while France’s CAC 40 declined 0.61%. Sterling was 0.25% lower against the US dollar at $1.3245.

Mining, financial and utility stocks were among the main decliners in London.

Metals prices moved lower, with gold futures down 0.75% and spot gold declining 0.82%. Silver fell 1.31%, platinum lost 2% and copper was down 0.36%.

Utility stocks also declined as bond yields increased.

US 10-Year Treasury Yield Nears 5.32%

The US 10-year Treasury yield traded near 5.32%, up from around 5.27% at Tuesday’s London close, while the 30-year yield was near 5.69%.

Market attention is also focused on the Federal Reserve’s September meeting minutes, UK gilt tenders and a $39 billion US 10-year Treasury auction.

ING strategists said, “we doubt rates will calmly settle at current levels.”

Oil Prices Rise as Middle East Developments Remain in Focus

Brent crude futures rose 0.72% to $101.29 a barrel, while WTI gained 0.57% to $89.91.

Comments surrounding the Strait of Hormuz remained in focus. Former Iranian diplomat Abbas Khamayar told Al Jazeera that Hormuz is “closed in a serious sense.”

Separately, the IRGC’s Yadollah Javani told IRNA that foreign fleets were “more than 1,000km” away. The claim had not been independently verified in the supplied report.

Oman said 10 crew members were evacuated from the On Peace tanker after it was struck off Limah on Tuesday.

US Vice President JD Vance told Reuters that Iran would need to make a “meaningful” reduction in enrichment, adding, “We’re not going to trade words for actions.”

Earlier, US President Donald Trump said the war would end “the nice way or the not-so-nice way” and claimed shipments through Hormuz were at levels comparable with those before the war.

ING’s Warren Patterson described the oil market as facing a “clear tug-of-war” between improving Gulf supply and continuing risks to flows.