Category: Top Story

US equity futures advanced on Friday, pointing to a recovery at the opening bell after Wall Street suffered a broad selloff in the previous session as higher crude prices and rebounding Treasury yields unsettled investors.

The prospect of buying stocks following Thursday’s decline provided some support, although persistent geopolitical tensions and elevated energy prices continued to temper risk appetite.

US crude futures retreated substantially from their earlier highs but remained around 0.2% higher, with markets still focused on the continuing confrontation between Washington and Tehran.

Nvidia results and Jackson Hole loom over markets

Investors may be reluctant to take large positions ahead of a busy week featuring quarterly earnings from Nvidia (NASDAQ:NVDA) and the Jackson Hole economic symposium.

“Next week’s results from Nvidia could put some of the focus back on corporate earnings but, as we head towards the autumn, a chill has started to descend for markets,” said Dan Coatsworth, head of markets at AJ Bell.

He added, “Investors will be looking for a comfort blanket when Federal Reserve chair Kevin Warsh addresses the Jackson Hole meeting at the end of this month.”

Nvidia’s results will provide another indication of the strength of artificial intelligence-related spending, while comments from Jackson Hole could influence expectations for the Federal Reserve’s next monetary policy moves.

Wall Street suffers steep Thursday losses

The expected Friday rebound comes after US equities weakened sharply during Thursday’s session, with losses accelerating as trading progressed.

The Dow Jones Industrial Average sank 703.84 points, or 1.3%, to 52,759.21. The Nasdaq Composite dropped 263.92 points, or 1%, to 26,067.17, while the S&P 500 lost 66.82 points, or 0.9%, to finish at 7,641.16.

The major averages ended close to their session lows, more than reversing the modest gains recorded on Wednesday.

US-Iran tensions send crude prices higher

Oil was a major source of pressure after President Donald Trump intensified his economic threats against Iran.

Trump announced on Truth Social that he was launching “economic warfare” against Tehran, describing the measures as the “most crushing economic operation ever taken against any country.”

He also threatened “tremendous economic consequences” for countries that “allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran.”

Iranian Foreign Minister Abbas Araghchi responded by calling the proposed “Economic D-Day” a “diversion from America’s own crisis: unprecedented debt & surging interest costs.”

“Doubling down on failed policies will only bring further defeat—and enmity of Iranians,” Araghchi wrote on X. “US economic terrorism threatens global economy and sovereignty worldwide.”

US crude futures subsequently jumped almost 3% to their highest levels in nearly a month as markets saw little indication that the conflict was moving closer to a resolution.

Oil rally reverses part of Treasury yield decline

The surge in energy prices also helped drive Treasury yields higher, reversing some of the sharp decline recorded a day earlier.

Yields had dropped on Wednesday after the US Treasury unveiled larger buyback operations for longer-term government debt. However, renewed concerns that elevated energy costs could reinforce inflationary pressures brought sellers back into the bond market.

Higher yields can make equities less attractive by increasing financing costs and improving the relative returns available from fixed-income assets.

Walmart selloff adds to pressure on equities

Walmart (NYSE:WMT) contributed heavily to Thursday’s weakness, plunging more than 9% after reporting disappointing second-quarter comparable-sales growth and issuing weaker-than-expected guidance.

The reaction spread through the retail sector, with the Dow Jones US Retail Index falling 2.5%.

Airline stocks were also hit, sending the NYSE Arca Airline Index down 2.4%, while housing, pharmaceutical and biotechnology shares recorded sizeable declines.

Gold miners were among the notable exceptions, advancing alongside higher precious-metal prices.

US futures are therefore signalling an initial recovery attempt on Friday, but the combination of volatile oil prices, elevated bond yields and geopolitical uncertainty could keep trading cautious ahead of Nvidia’s earnings and Jackson Hole.

European equities moved modestly higher on Friday, although the region’s major markets remained on course to finish the week lower as investors weighed elevated oil prices, volatility in government bonds and fresh economic data.

Germany’s DAX gained 0.3%, while the UK’s FTSE 100 and France’s CAC 40 both advanced 0.2%.

Despite the positive session, concerns over energy costs and instability in fixed-income markets continued to weigh on the broader weekly performance.

UK retail sales fall in July

Sterling weakened slightly against the euro following the release of UK retail sales figures showing a 0.5% month-on-month decline in July.

The decrease reversed a revised 0.7% increase in June and was slightly worse than the 0.4% contraction economists had forecast.

On an annual basis, retail sales growth slowed considerably to 1.6% from 3.8% in June, adding to concerns about the strength of household spending.

Hunting falls after cutting profit outlook

Hunting Plc (LSE:HTG) shares dropped sharply in London after the British energy services company lowered its annual core profit forecast.

The downgrade put the stock among the notable decliners during Friday’s European session as investors reassessed the company’s near-term earnings outlook.

Elsewhere, Banca Generali (BIT:BGN) moved lower after Monte dei Paschi di Siena (BIT:BMPS) launched simultaneous all-share takeover proposals for the Italian wealth manager and Banco BPM (BIT:BAMI).

German ticketing company CTS Eventim (TG:EVD) also declined after publishing mixed second-quarter results.

Fresnillo and mining shares gain as metals rally

Mining stocks provided support to European markets as precious and industrial metals prices strengthened.

Fresnillo (LSE:FRES) jumped after gold climbed above $4,550 an ounce, supported by a weaker US dollar and expectations that longer-term Treasury yields could remain contained.

Copper producers also benefited from the softer dollar, with Antofagasta (LSE:ANTO) and Glencore (LSE:GLEN) recording notable gains as copper prices moved higher.

The strength of mining shares helped offset weakness elsewhere in the market, although European equities remained positioned for a weekly decline amid persistent concerns surrounding oil prices and bond-market volatility.

UK markets open flat as metals rally offsets weak retail sales; Hunting cuts EBITDA guidance, eEnergy secures funding, Bitcoin surges vs GBP.

Market Overview

UK and European markets opened little changed on Friday, with the FTSE 100 and Euronext 100 both essentially flat and the DAX modestly firmer, following a weaker session on Wall Street overnight where the Nasdaq closed down 1.00 per cent and the S&P 500 fell 0.87 per cent. A rally in precious and industrial metals has helped support London-listed miners even as fresh UK retail sales data pointed to softer consumer spending. Sentiment across European equities remains cautious after a difficult week for the region, with escalating US sanctions rhetoric on Iran keeping energy markets on edge, a bout of global bond market volatility earlier in the week, and hawkish signals from both the Federal Reserve and the European Central Bank over the inflation outlook.

Commodities were mixed at the open, with copper firmer while gold was little changed. Brent crude and natural gas both eased back slightly. Bitcoin moved sharply higher against sterling, extending a strong run for the cryptocurrency. Sterling was mixed against major peers, edging marginally higher against the US dollar but softer against the yen, the euro and the Swiss franc, and little changed against the Australian dollar. Broader macro attention remains fixed on the standoff over Iran sanctions and its implications for oil supply, alongside central bank commentary suggesting interest rates could stay higher for longer.

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Market Numbers

FTSE 100: Down (-0.001%), 10,748.07
Euronext 100: Up (+0.001%), 1,933.58
DAX: Up (+0.061%), 25,998.95
NASDAQ: Down (-1.00%), 26,067.17
S&P 500: Down (-0.87%), 7,641.16

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In the Headlines

Guidance cut – Hunting PLC (LSE:HTG)
Hunting lowered its 2026 EBITDA guidance after a Kuwait Oil Company tender re-run was delayed, a setback expected to reduce next year’s earnings by around 10 million dollars. The news follows a weaker first half for the oilfield services group, though management raised the interim dividend, signalling confidence in the longer-term outlook.

Funding secured – eEnergy Group plc (LSE:EAAS)
eEnergy Group arranged two loan facilities totalling 1 million pounds to bridge a working capital shortfall after roughly 3.2 million pounds of payments from its Mace solar projects were delayed by incomplete documentation. The funding addresses a near-term cash-flow gap while the company awaits the outstanding payments.

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Currencies (vs GBP)

USD: Up (+0.004%), $1.3643
CHF: Down (-0.008%), Fr.1.0909
EUR: Down (-0.002%), €1.1673
JPY: Down (-0.020%), ¥216.756
AUD: Flat (0.000%), $1.9164
Bitcoin (BTC/GBP): Up £55,956.99

Commodities

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

US equity futures edged higher on Friday as investors prepared for preliminary August business activity data while continuing to monitor volatility in bond markets, developments in the retail sector and Washington’s plans for tougher sanctions against Iran.

Ross Stores (NASDAQ:ROST) was among the notable corporate movers after the discount retailer raised its annual profit guidance following stronger-than-expected quarterly earnings.

Stock futures point to modest gains

By 03:11 ET (07:11 GMT), Dow futures were up 65 points, or 0.1%, while contracts linked to the S&P 500 rose 14 points, or 0.2%. Nasdaq 100 futures gained 115 points, equivalent to 0.4%.

The advance followed a weaker session on Wall Street on Thursday, when renewed increases in government bond yields weighed on equities.

Earlier in the week, the US Treasury Department announced plans to increase buybacks of longer-dated debt, briefly easing concerns after the 30-year Treasury yield climbed close to a two-decade high.

That relief did not last, however, as bond yields resumed their rise.

Vital Knowledge analysts said comments from US Treasury Secretary Scott Bessent during a CNBC interview failed to restore confidence and could even have been “counterproductive by conveying both panic and powerlessness” in confronting the forces pushing borrowing costs higher.

These pressures include higher energy prices linked to the Iran conflict, widening fiscal deficits and rapidly expanding investment in artificial intelligence infrastructure.

Investors look to August PMI readings

Friday’s preliminary PMI figures will provide another indication of the health of the US economy as businesses contend with higher oil prices and uncertainty over the future path of interest rates.

Economic activity has so far remained comparatively resilient despite the energy shock and growing speculation that central banks could be forced to tighten policy further if inflation remains elevated.

Deutsche Bank analysts noted that the US composite PMI, combining manufacturing and services activity, reached its strongest level of 2026 in July.

For August, the S&P Global services PMI is expected to ease to 53.9, while the manufacturing index is forecast to increase to 54.0. Any figure above 50 signals expansion.

Ross Stores rallies after lifting guidance

Ross Stores (NASDAQ:ROST) shares jumped more than 8% in extended trading after the retailer raised its full-year earnings outlook and delivered second-quarter profit above expectations.

The company has been strengthening its value-focused merchandise offering as inflation-conscious consumers increasingly seek lower-priced alternatives to traditional department stores and specialist apparel retailers.

CEO Jim Conroy said customer spending improved across product categories and geographic markets, with particularly strong demand for home products and cosmetics.

Ross now expects earnings per share of $8.61 to $8.77 for the year, compared with its previous forecast of $7.50 to $7.74.

Adjusted quarterly earnings reached $2.06 per share, ahead of the $1.94 expected by analysts, according to LSEG estimates cited by Reuters.

Retail results keep consumer outlook in focus

Elsewhere in the sector, disappointing results from Walmart contributed to concerns about the resilience of US household spending.

Vital Knowledge analysts said weaker retail earnings across the week have increased uncertainty over the American consumer, particularly as households continue to face elevated prices and borrowing costs.

Investors are therefore closely watching retail performance for evidence that cost-of-living pressures are beginning to translate into softer discretionary demand.

Washington prepares “toughest sanctions in history” against Iran

Geopolitical tensions remained firmly in focus after Bessent said the United States was preparing a major new sanctions package against Iran.

“It is a one-two punch. We have the blockade, and we are going to have the toughest sanctions in history,” Bessent said in an interview with CNBC, adding that he will hold a press conference on Monday to outline the details of the plan.

Bessent also called on China to support the sanctions effort, although Beijing has largely opposed further restrictions on Tehran.

His comments followed President Donald Trump’s warning that Iran faced “economic warfare and isolation on an unprecedented scale.”

Iran rejected Washington’s rhetoric, with Foreign Minister Abbas Araghchi accusing Trump of attempting to draw attention away from domestic US issues, particularly rising government debt.

Oil prices dip from one-month highs

Crude prices moved lower on Friday but remained on course for another strong weekly advance as tensions surrounding the Strait of Hormuz persisted.

Brent futures fell 0.4% to $93.41 a barrel, while West Texas Intermediate crude declined 0.6% to $86.36.

Brent remained set for a weekly increase of more than 5%, reflecting continued concern that disruption around the Strait of Hormuz could restrict global energy supplies.

The combination of elevated oil prices, volatile bond yields and potentially tighter monetary policy leaves investors facing a complex backdrop as they await the latest PMI readings.

European equities were on track to end a volatile week under pressure, with escalating tensions in the Middle East, higher crude prices and elevated bond yields putting the region’s benchmarks on course for their weakest weekly performance in almost two months.

The pan-European Stoxx Europe 600 Index was down 1.14% for the week, its steepest five-day decline since July 6. Friday’s session was considerably calmer, with the index broadly unchanged alongside Germany’s DAX and France’s CAC 40, while the FTSE 100 edged 0.1% higher.

The weekly decline represents a reversal from the strong momentum seen entering August, when European markets benefited from an upbeat second-quarter earnings season. Strong banking profits, resilient luxury-sector margins and better-than-expected energy results had helped push several benchmarks to record levels.

Trump sanctions threat sends Brent to one-month high

A renewed escalation in rhetoric from Washington provided the main geopolitical headwind on Friday.

U.S. President Donald Trump pledged to unleash “economic warfare” against Tehran and warned that Washington would impose the toughest sanctions in history on Iran, including measures targeting countries that provide economic support to the regime.

The prospect of aggressive secondary sanctions further reduced investor expectations of a rapid diplomatic agreement capable of restoring normal commercial shipping through the Strait of Hormuz.

Brent crude futures consequently climbed to a one-month high of $93.12 a barrel, putting the international benchmark on course for a weekly increase of more than 5%.

Commercial tanker traffic through the Persian Gulf remains severely restricted, prompting energy markets to increasingly factor in the possibility of an extended disruption to global seaborne crude oil and liquefied natural gas supplies.

Bond market turmoil adds to equity pressure

Geopolitical concerns were only one source of volatility during the week, with a sharp global bond selloff also weighing heavily on European equities.

Germany’s 10-year Bund yield climbed to 3.22%, its highest level since 2011, while the US 30-year Treasury yield moved above 5.33%.

The rapid increase in sovereign borrowing costs compressed the relative attractiveness of European equities and raised fresh concerns about the implications of higher interest rates for economic growth and corporate valuations.

A surprise move by the US Treasury to double purchases of longer-dated bonds through its buyback programme temporarily eased the pressure in fixed-income markets, but the relief proved short-lived as central banks delivered more hawkish signals.

Rate hike expectations return to focus

Minutes from the Federal Reserve’s July meeting indicated that US policymakers were prepared to raise interest rates again if inflation remained elevated.

In Europe, European Central Bank Chief Economist Philip Lane warned that eurozone inflation running close to 3% remained unacceptable.

The combination of persistent inflation and hawkish central-bank commentary has prompted money markets to assign a high probability to an ECB interest rate increase in September.

That shift has renewed concerns that restrictive monetary policy could persist even as economic growth remains under pressure.

European markets face tougher autumn backdrop

With the positive momentum from second-quarter earnings now fading, investors are increasingly focused on the combination of elevated energy costs, stubborn inflation, higher bond yields and geopolitical uncertainty.

Brent crude holding above $93 a barrel adds another source of inflationary pressure at a time when markets are already reconsidering the outlook for European interest rates.

The resulting environment presents an increasingly difficult backdrop for continental equities, with concerns over stagflation and developments in the Middle East likely to remain key drivers of market sentiment heading into the autumn.

The FTSE 100 edged higher on Friday as a rally in gold, silver and copper prices boosted London-listed mining shares, helping the UK benchmark outperform broadly flat European markets despite weaker domestic retail sales and continued uncertainty surrounding sanctions on Iran.

The FTSE 100 was up 0.16% at 03:20 ET (07:20 GMT), while Germany’s DAX declined 0.11% and France’s CAC 40 slipped 0.09%. Sterling strengthened against the dollar, with GBP/USD rising 0.15% to 1.3649.

Mining stocks rally as precious and industrial metals climb

Commodity producers dominated the FTSE 100’s strongest performers as metals prices advanced against a weaker US dollar and heightened demand for safe-haven assets following the US Treasury’s buyback announcement.

Gold futures gained 1.1% to $4,623, while spot gold advanced 1% to $4,566.32. Silver climbed 1.5% and copper increased 1.4%.

Antofagasta (LSE:ANTO) led the FTSE 100 with a 4.3% gain as the copper producer benefited from the rise in the industrial metal.

Glencore (LSE:GLEN) advanced 2.2%, while gold producer Endeavour Mining (LSE:EDV) gained 2.7%. Anglo American (LSE:AAL) was also 2.7% higher and precious metals producer Fresnillo (LSE:FRES) climbed 3.7%.

Iran sanctions keep geopolitical risks in focus

Geopolitical developments remained a major consideration for markets as Washington intensified its pressure on Tehran.

Treasury Secretary Scott Bessent warned of the “toughest sanctions in history” following what U.S. President Donald Trump called on social media platform Truth Social the “most crushing economic operation ever taken” against Tehran.

Trump told 77 WABC that the U.S. was “essentially controlling the straits” and that Iran’s navy, air force and leadership were “gone.”

The US president also announced what he described as an “Economic D-Day,” introducing measures targeting oil-smuggling networks, financial transfers, exchange houses, ship registries and front companies. Countries continuing to maintain economic ties with Iran were warned of “tremendous economic consequences.”

Bessent urged China to “get with the programme” regarding the reopening of the Strait of Hormuz, with China sourcing around half of its energy requirements from the Gulf.

US Central Command said American forces had redirected 67 vessels, disabled three and boarded two as of 20 August as part of enforcement operations connected with the Iran blockade.

Iranian Foreign Minister Abbas Araghchi rejected Trump’s “Economic D-Day” measures as an attempt to divert attention from US debt and rising interest costs. Iranian Parliament Speaker Mohammad Bagher Ghalibaf said the Strait would remain closed until Washington met the conditions of a 14-point Memorandum of Understanding, including ending the blockade and releasing frozen assets.

Jefferies warns sanctions could widen trade tensions

Jefferies strategist Mohit Kumar questioned how effective Washington’s measures would be without broader international participation.

Kumar said the Iran sanctions would prove “ineffective without the support of China, Russia and a number of Asian countries who are active trading partners of Iran,” while warning that sanctions against those countries could risk “creating a wider trading conflict.”

He expects oil prices to remain elevated, potentially maintaining upward pressure on longer-dated bond yields. Jefferies is therefore “staying away from duration sensitive sectors” while favouring technology and financial stocks.

Kumar also noted reports indicating that traffic through the Strait of Hormuz may be greater than official estimates suggest, partly because of ship-to-ship transfers and vessels “going dark” while travelling through the Oman side.

Oil prices retreat from Thursday’s highs

Crude prices moved lower during Friday’s session despite the continuing geopolitical tensions.

Brent crude declined 0.32% to $93.48 a barrel, while WTI fell 0.51% to $86.39, retreating from the highs reached on Thursday.

The pullback meant energy companies did not participate significantly in the FTSE 100’s gains, with mining shares instead providing the main support to the London index.

UK retail sales decline in July

Domestic economic data provided a less encouraging backdrop, with UK retail sales volumes falling 0.5% month on month in July 2026.

The result matched market forecasts but represented the first monthly decline since April, as earlier promotional activity brought some consumer spending forward into June.

Non-food sales volumes dropped 1.3%, reflecting weakness in clothing and household goods. Food store sales increased 0.5%, helped by unusually warm weather and spending linked to the World Cup.

Annual retail sales growth slowed to 1.6% from 3.8% in June, marking the weakest year-on-year increase in three months, according to the Office for National Statistics.

UK round-up

Hunting (LSE:HTG) lowered its 2026 EBITDA guidance following weaker activity across its OCTG and Advanced Manufacturing businesses.

First-half revenue declined 6%, while adjusted profit fell 21%. The company attributed the weaker comparison partly to the absence of Kuwait Oil Company orders and delays to Middle East tendering activity.

These pressures were partially offset by stronger performances from Hunting’s Perforating Systems and Subsea Technologies divisions.