ADVFN UK Market News

Category: Top Story

  • European markets edge higher as investors monitor possible U.S.-Iran negotiations: DAX, CAC, FTSE100

    European markets edge higher as investors monitor possible U.S.-Iran negotiations: DAX, CAC, FTSE100

    European equities traded mostly higher on Thursday as investors reacted to reports suggesting that the United States and Iran were working toward restarting negotiations aimed at ending the ongoing conflict between the two countries.

    By 07:10 GMT, the pan-European Stoxx 600 index had gained 0.1%, while Germany’s DAX rose 0.1% and France’s CAC 40 advanced 0.4%. In contrast, the UK’s FTSE 100 slipped 0.3%.

    Reports point to renewed diplomatic efforts

    According to reports, Washington and Tehran have been working with mediators on a one-page framework intended to relaunch discussions around a lasting peace agreement. The Wall Street Journal said negotiations are expected to begin next week in Pakistan.

    The report added that talks over the following month would aim to address disputes surrounding Iran’s nuclear programme and the potential easing of sanctions, although major disagreements remain over issues such as uranium enrichment and international inspections.

    President Donald Trump suggested that the U.S. military campaign against Iran, launched jointly with Israel in late February, could end if Tehran “agrees to give what has been agreed to.”

    Oil prices fall as hopes for de-escalation grow

    U.S. markets rallied strongly on Wednesday as expectations increased that the conflict could move toward a resolution.

    Oil prices also declined sharply amid hopes that tanker traffic through the Strait of Hormuz could resume. The key shipping route off Iran’s southern coast handles roughly one-fifth of global crude oil flows and has been heavily disrupted during the conflict.

    Brent crude futures, the global benchmark for oil prices, were last down 3.7% at $97.92 per barrel on Thursday.

    Corporate earnings influence market sentiment

    Company earnings releases across Europe also remained a focus for investors.

    Shares in Shell (LSE:SHEL) moved lower after the energy major reported quarterly earnings above market expectations but announced a reduction in the pace of share buybacks.

    Meanwhile, semiconductor designer Arm Holdings (NASDAQ:ARM) issued first-quarter revenue guidance ahead of analyst forecasts, reinforcing optimism that demand for artificial intelligence-related chips remains strong.

    European semiconductor stocks traded higher following the announcement.

  • FTSE 100 opens lower as investors monitor US-Iran negotiations

    FTSE 100 opens lower as investors monitor US-Iran negotiations

    London stocks opened slightly weaker on Thursday as investors weighed conflicting signals surrounding ongoing negotiations between the United States and Iran, despite increasingly optimistic comments from U.S. President Donald Trump regarding the possibility of a diplomatic agreement.

    By 07:14 GMT, the FTSE 100 had fallen 0.28%, while European markets showed a firmer tone, with Germany’s DAX rising 0.20% and France’s CAC 40 gaining 0.41%. Sterling was broadly stable against the dollar, with GBP/USD up 0.18% at 1.3621.

    Trump signals optimism over potential Iran agreement

    Market sentiment was influenced by comments from President Trump, who told reporters at the White House that discussions with Tehran over the previous 24 hours had been “very good” and that reaching a deal remained “very possible.”

    In later remarks to PBS, Trump said he believed an agreement could potentially be finalised before his scheduled visit to China next week, although he warned that military action could resume if negotiations fail.

    Iran’s Foreign Ministry stated that no formal response had yet been delivered to Washington’s latest proposal, with diplomatic communication continuing through Pakistani mediators.

    Reuters, citing both a Pakistani source and an individual briefed on the talks, reported that the two sides were nearing agreement on a short memorandum aimed at formally ending the conflict. Meanwhile, Axios reported that a proposed 14-point framework included commitments from Iran not to pursue nuclear weapons development and to suspend uranium enrichment activities for at least 12 years.

    Iranian officials issue warnings amid ongoing talks

    Despite the diplomatic progress, tensions remained elevated. A senior official from the IRGC Navy warned that any renewed US military action would trigger a response “beyond the enemy’s calculations.”

    Iran’s parliamentary speaker also criticised Washington’s strategy around the Strait of Hormuz, describing it as “Operation Trust Me Bro” and claiming the approach had failed.

    UK market movers and corporate updates

    JD Sports warns on profits

    JD Sports (LSE:JD.) said profits are expected to decline further in the 2026/27 financial year, citing subdued consumer demand and uncertainty linked to Middle East tensions. The retailer also reported a 2.3% decline in first-quarter like-for-like sales.

    BAE Systems maintains strong outlook

    BAE Systems (LSE:BAE) reiterated guidance for earnings growth of between 9% and 11% in 2026 as elevated geopolitical tensions continue to support defence spending and order activity. The company’s order backlog has expanded significantly since Russia’s invasion of Ukraine in 2022.

    M&G returns to positive inflows

    M&G (LSE:MNG) reported £600 million of net inflows during the first quarter, reversing outflows recorded a year earlier. Demand from Japanese partner Daiichi Life and external institutional clients supported the improvement.

    Hiscox posts premium growth

    Hiscox (LSE:HSX) announced a 10.2% increase in first-quarter insurance contract written premiums, driven by strong retail insurance performance across the UK, Europe and the United States.

    IHG beats expectations despite regional risks

    InterContinental Hotels Group (LSE:IHG) exceeded market forecasts with first-quarter RevPAR growth of 4.4%, ahead of expectations for 3.3%. Strong US leisure demand supported performance, although management warned that Middle East tensions could affect future travel activity.

    Shell beats earnings forecasts

    Shell (LSE:SHEL) reported first-quarter adjusted earnings of $6.92 billion, ahead of analyst expectations of $6.36 billion. However, the company reduced its quarterly share buyback programme to $3 billion from $3.5 billion and noted a higher debt ratio following conflict-related disruption at its Pearl gas facility in Qatar.

    BP receives licence extension

    BP (LSE:BP.) was granted an extension to a US licence allowing the use of a payment mechanism involving sanctioned Iranian and Russian entities tied to a major Azerbaijani gas development, according to Bloomberg.

    Intertek likely to reject takeover approach

    Intertek (LSE:ITRK) is reportedly preparing to reject an improved £58-per-share takeover proposal from Swedish private equity firm EQT, according to the Financial Times.

    UK economic data points to slower activity

    Separate economic surveys released on Thursday indicated that UK construction activity contracted at its fastest pace in nearly six years during the three months to March.

    Meanwhile, a separate labour market survey showed that private sector pay settlements remained unchanged in March, with median annual pay offers holding steady from the previous month.

  • BAE Systems (BAE) maintains guidance after strong start to 2026

    BAE Systems (BAE) maintains guidance after strong start to 2026

    BAE Systems (LSE:BAE) reaffirmed its full-year financial guidance after reporting a strong operational and financial performance during the opening four months of 2026. The defence and aerospace group said rising military spending across its major markets continues to support robust demand for its products and services.

    Management highlighted approximately £4.5 billion in new orders secured so far this year, more than double the level reported during the equivalent period in 2025.

    Major defence contracts strengthen order book

    Among the new business secured was a £2.5 billion training and support agreement linked to Turkey’s recent Eurofighter acquisition, alongside £1.1 billion of new orders for MBDA missile systems.

    BAE Systems said it continues to see additional opportunities emerging across several high-priority defence sectors, including missile and air defence systems, space technologies, drone and counter-drone capabilities, and electronic warfare solutions.

    The company noted that increasing global security threats are driving governments to raise defence budgets, creating favourable long-term conditions across its core markets.

    Full-year targets remain unchanged

    The group maintained its 2026 guidance, continuing to expect sales growth of between 7% and 9%, underlying EBIT growth of 9% to 11%, and underlying earnings per share growth within the same range.

    BAE also reiterated expectations for free cash flow to exceed £1.3 billion during the year.

    Analysts said the company remains well positioned to benefit from sustained increases in defence spending globally, particularly due to its exposure to strategically important areas such as air defence, naval platforms, drones, space systems and electronic warfare.

    Dividend increased following strong trading momentum

    The company also announced a final dividend for 2025 of 22.8 pence per share, up from 20.6 pence in the previous year, reflecting confidence in cash generation and ongoing earnings growth.

    More about BAE Systems

    BAE Systems is a UK-based multinational aerospace, defence and security company supplying advanced military technology, weapons systems and support services to governments and defence organisations worldwide. The group operates across air, maritime, land, cyber and space domains, with major programmes spanning combat aircraft, naval vessels, missile systems, electronic warfare and defence electronics.

  • JD Sports (JD.) signals weaker profit outlook amid soft consumer demand

    JD Sports (JD.) signals weaker profit outlook amid soft consumer demand

    JD Sports (LSE:JD.) has warned that profits could decline further in the coming financial year as weak consumer spending, difficult footwear market conditions and wider geopolitical uncertainty continue to weigh on trading.

    The retailer forecast profit before tax and adjusting items (PBTAI) of between £750 million and £850 million for fiscal 2027. The upper end of the range would only broadly match the £852 million reported for the year ended January 2026, which itself represented a 6.4% decline on the previous year at constant currency.

    Management said the wide guidance range reflects ongoing uncertainty surrounding consumer demand, industry trading conditions and the broader macroeconomic environment.

    Management remains cautious on short-term market conditions

    Chief Executive Régis Schultz said the company remains focused on operational discipline while preparing for continued subdued market growth in the near term.

    He added that although current consumer and industry indicators remain challenging, management continues to hold a more positive view of the group’s medium-term growth prospects.

    Revenue growth driven by acquisitions despite weaker like-for-like sales

    For the financial year just completed, total sales increased 11.7% at constant currency to £12.66 billion. However, excluding contributions from the acquisitions of Hibbett and Courir, underlying organic growth was a more modest 2.1%.

    Group like-for-like sales declined 2.1%, reflecting softer trading conditions across several regions and categories.

    Gross margin remained stable at 47%, as controlled pricing investments — particularly within online channels — were balanced by increased marketing support from major brand partners.

    Margins pressured despite stronger cash flow

    Operating profit before adjusting items declined 5.4% to £886 million, while operating margin narrowed by 120 basis points to 7.0%. The company attributed the decline to inflationary cost pressures and weaker like-for-like sales performance.

    Despite the earnings pressure, free cash flow rose 36% to £462 million, supported by tighter capital discipline and lower capital expenditure, which fell to £401 million from £515 million in the previous year.

    JD Sports ended the period with net cash before lease liabilities of £311 million, a significant improvement from £52 million a year earlier. The group expects free cash flow for FY27 to range between £460 million and £520 million.

    North America improves while UK remains challenging

    North America, now JD Sports’ largest market accounting for 38% of total sales, recorded a 1.8% decline in like-for-like sales over the full year. However, trading improved progressively throughout the year, with positive like-for-like growth achieved during the fourth-quarter peak trading period.

    The UK delivered the weakest performance, with organic sales falling 2.5% and like-for-like sales down 3.9%, impacted by softer footwear demand and weaker online trading.

    Asia Pacific was the strongest-performing region, generating organic growth of 8.5% alongside improving like-for-like sales momentum toward the end of the year.

    More about JD Sports

    JD Sports Fashion plc is a UK-based international sportswear retailer operating stores and digital platforms across multiple global markets. The company specialises in branded athletic footwear, apparel and accessories, partnering with major sportswear brands while expanding through acquisitions and international growth initiatives across Europe, North America and Asia Pacific.

  • Shell (SHEL) reports stronger first-quarter earnings and expands shareholder returns

    Shell (SHEL) reports stronger first-quarter earnings and expands shareholder returns

    Shell plc (LSE:SHEL) delivered a strong set of first-quarter 2026 results, with income attributable to shareholders rising to $5.7 billion and adjusted earnings reaching $6.9 billion. Performance was supported by stronger trading and optimisation activity, improved realised commodity prices, firmer refining margins and lower operating costs.

    Cash flow from operations totalled $6.1 billion, although this was negatively affected by an $11.2 billion working capital outflow linked to commodity price movements. Net debt increased to $52.6 billion, while gearing rose to 23.2%, partly due to higher lease liabilities, shareholder distributions and interest expenses.

    Shareholder distributions and buyback programme continue

    The company returned $5.3 billion to shareholders through a combination of dividends and share repurchases during the quarter. Shell also declared a quarterly dividend of $0.3906 per share and announced a new $3 billion share buyback programme, which is expected to continue until the release of second-quarter 2026 results.

    Management said the ongoing capital return programme reflects confidence in the group’s cash-generating capability and continued focus on disciplined capital allocation.

    Portfolio reshaping continues through acquisitions and disposals

    Shell continued to reshape its asset portfolio during the quarter through a series of strategic transactions. The company agreed to acquire Canadian natural gas producer ARC Resources in a deal valued at approximately $13.6 billion, strengthening its position in the Montney shale basin and expanding its Integrated Gas operations.

    At the same time, Shell agreed to sell Jiffy Lube International for around $1.3 billion while securing a long-term lubricants supply agreement linked to the business. The company said these moves align with its strategy of concentrating investment on core energy and downstream operations while reallocating capital toward higher-priority growth areas.

    Strong fundamentals balanced by operational risks

    Shell’s outlook continues to be supported by solid underlying financial performance and management guidance focused on cost reduction, disciplined investment and sustained shareholder returns. Technical indicators remain positive, although some measures suggest the shares may be approaching overbought conditions.

    Valuation metrics remain relatively reasonable, supported by a dividend yield of around 3%, although weaker recent free cash flow trends and operational risks linked to the Chemicals division, safety performance and reserve replacement remain factors that could limit upside potential.

    More about Shell

    Shell plc is a global energy and petrochemicals company operating across the full oil and gas value chain, including exploration, production, refining, trading, marketing and liquefied natural gas. The group also continues to expand its focus on downstream activities, renewable energy and broader energy solutions while maintaining a significant global presence in fuels, lubricants and related products.

  • Centrica (CNA) acquires Severn gas-fired power station in £370 million deal

    Centrica (CNA) acquires Severn gas-fired power station in £370 million deal

    Centrica (LSE:CNA) has finalised the acquisition of the Severn combined-cycle gas turbine power plant in South Wales from Calon Energy for £370 million. The transaction increases the company’s electricity generation portfolio across the UK and Ireland to 4GW, including projects currently under development and construction. The Severn facility, commissioned in 2010, has an 850MW capacity and is regarded as one of the UK’s most efficient gas-fired power stations, providing large-scale flexible generation capability at a time of growing demand for grid stability.

    Plant expected to provide long-term earnings contribution

    Centrica said the Severn asset is well positioned to benefit from several revenue streams, including wholesale electricity sales, capacity market payments and balancing services supplied to the National Energy System Operator. The company expects the station to deliver average annual capacity market revenues of around £35 million through to 2030, while EBITDA is projected to range between £30 million and £60 million annually from 2027 onward. Management also indicated the acquisition is expected to become earnings accretive on a per-share basis from the first full year following completion.

    Flexible generation seen as key during energy transition

    The company believes the Severn power station will play an important role in supporting system reliability during the UK’s ongoing energy transition. Centrica noted that gas-fired generation continues to provide essential dispatchable and flexible power capacity as older plants retire and grid constraints persist. The acquisition is aligned with the group’s broader capital allocation strategy and increases expected 2026 capital investment to approximately £1.1 billion. The purchase was funded entirely through existing cash resources on a cash-free, debt-free basis.

    Integration costs expected to weigh on short-term earnings

    Centrica warned that transaction-related expenses, integration costs and seasonally weaker summer revenues are likely to contribute to a modest net loss during 2026. Despite this, management sees opportunities to improve returns through operational optimisation and by applying its expertise in managing critical infrastructure assets. The deal also strengthens Centrica’s exposure to flexible power generation as electricity demand in South Wales is expected to rise, particularly from emerging high-energy users such as data centres.

    Financial profile remains balanced

    The company’s outlook is supported by solid revenue growth and consistently positive free cash flow generation, although this is balanced against volatile profitability, including a net loss recorded in 2025, and a balance sheet viewed as only moderately resilient. Technical indicators remain moderately constructive, with the stock trading above key long-term moving averages and momentum signals remaining neutral. Valuation metrics are considered reasonable, supported by a moderate price-to-earnings ratio and dividend yield.

    More about Centrica

    Centrica plc is a UK-based energy group listed on the London Stock Exchange, operating across electricity generation, energy supply and related services throughout the UK and Ireland. The company manages a portfolio of flexible generation assets, including combined-cycle gas turbine plants, and focuses on supporting energy security and the transition toward a lower-carbon energy system while generating returns for consumers, businesses and shareholders.

  • European equities rally as hopes rise for U.S.-Iran agreement: DAX, CAC, FTSE100

    European equities rally as hopes rise for U.S.-Iran agreement: DAX, CAC, FTSE100

    European stock markets moved sharply higher on Wednesday as investor sentiment improved on growing expectations that the United States and Iran could move toward a diplomatic agreement.

    A steep drop in oil prices and easing concerns over energy-driven inflation further supported risk appetite across the region. Investor confidence was also boosted by record highs in U.S. stock futures and another round of strong corporate earnings reports.

    The U.K.’s FTSE 100 climbed 2.6% from Tuesday’s close of 10,219.11 and was trading at 10,482.96. During the session, the index moved between 10,324.72 and 10,487.66.

    France’s CAC 40 advanced 3.3% to 8,329.49 after fluctuating between 8,131.53 and 8,330.44. The benchmark index has now gained 8.2% since the start of the year.

    Germany’s DAX jumped 2.7% to 25,041.89 from the previous close of 24,392.27. The index traded between 24,616.25 and 25,150.39 and touched its highest level in nine weeks.

    Switzerland’s Swiss Market Index also rallied strongly, rising 2.3% from 13,052.17 to 13,348.40. The session range stood between 13,174.20 and 13,377.70.

    The pan-European EURO STOXX 50 gained 3% to trade at 6,045.45, compared with its prior close of 5,869.63. Intraday trading ranged from 5,917.95 to 6,065.06.

    Renewed optimism surrounding a possible U.S.-Iran peace agreement also weakened the safe-haven U.S. dollar.

    The EUR/USD pair rose 0.7% to 1.1769, while GBP/USD gained 0.5% to trade at 1.3621.

    European markets had already finished Tuesday’s session in positive territory after tensions in the Middle East showed signs of easing.

  • European equities advance while oil declines after Trump pauses Hormuz operation: DAX, CAC, FTSE100

    European equities advance while oil declines after Trump pauses Hormuz operation: DAX, CAC, FTSE100

    European stock markets moved higher on Wednesday as investors reacted positively to signs of easing tensions around the Strait of Hormuz and growing expectations of a potential diplomatic agreement between the United States and Iran.

    By 07:08 GMT, the pan-European Stoxx 600 index was up 1.2%, while Germany’s DAX gained 1.2%, France’s CAC 40 rose 1.2% and the UK’s FTSE 100 advanced 1.3%.

    Trump temporarily suspends Strait of Hormuz mission

    On Tuesday, U.S. President Donald Trump announced that “Project Freedom” — a U.S.-led military effort designed to reopen the Strait of Hormuz by escorting commercial ships through the waterway — would be suspended “for a short period of time.”

    The operation had only recently begun earlier this week and was followed by renewed attacks in the strait and wider Gulf region, including incidents targeting locations in the United Arab Emirates.

    In a post on social media, Trump said the decision had partly been made at the request of Pakistan, which has frequently acted as a mediator between Washington and Tehran. He also stated that “great progress” had been achieved toward a peace agreement with Iran.

    China-Iran talks fuel hopes of de-escalation

    Trump’s move came shortly after discussions between Iranian and Chinese foreign ministers. China remains one of the largest buyers of Iranian crude oil, and reports have suggested that Beijing may be encouraging Tehran to avoid further escalation with Washington ahead of a planned meeting next week between Chinese President Xi Jinping and Trump.

    Oil prices retreat despite continued shipping disruption

    Oil prices fell following Trump’s announcement, with Brent crude futures declining 1.5% to $108.22 per barrel. Even so, prices remain significantly above levels seen before the conflict escalated.

    The Strait of Hormuz — through which roughly one-fifth of global oil supplies pass — effectively remains closed to tanker traffic after weeks of disruption, with both the United States and Iran maintaining blockades in the area.

    Novo Nordisk and Diageo among market gainers

    Among individual stocks, shares in Novo Nordisk (NYSE:NVO) rose after the maker of the weight-loss treatment Wegovy reported stronger-than-expected revenue and adjusted operating profit, helping reassure investors amid intense competition from rivals including Eli Lilly.

    Diageo (LSE:DGE) also moved higher as demand increased ahead of this year’s football World Cup tournament.

    German carmaker BMW (TG:BMW) gained following its quarterly earnings update, while Norwegian energy group Equinor (NYSE:EQNR) traded lower after its latest results.

  • FTSE 100 rises as hopes grow for diplomatic breakthrough between U.S. and Iran

    FTSE 100 rises as hopes grow for diplomatic breakthrough between U.S. and Iran

    UK equities moved higher on Wednesday after signs of easing tensions between the United States and Iran lifted investor sentiment, following reports that Washington had temporarily paused military escort operations in the Strait of Hormuz.

    By 07:25 GMT, the FTSE 100 was up 1.3%, while sterling strengthened slightly against the dollar to 1.3587. European markets also advanced, with Germany’s DAX gaining 1.3% and France’s CAC 40 rising 1.14%.

    Trump signals potential diplomatic progress with Iran

    U.S. President Donald Trump said that “Project Freedom” — the U.S. naval and air mission escorting commercial shipping through the Strait of Hormuz — would be paused temporarily amid progress toward what he described as a “complete and final agreement” with Iran.

    Despite the pause, Trump stressed that the naval blockade on Iranian ports would remain in place.

    The development came shortly after U.S. Secretary of State Marco Rubio had indicated that the escort mission would continue, highlighting the rapid pace of diplomatic developments. Pakistan reportedly remains involved as an intermediary between Washington and Tehran.

    Markets encouraged by de-escalation despite ongoing tensions

    Investors welcomed the softer diplomatic tone, although geopolitical uncertainty remains elevated. Iranian President Masoud Pezeshkian rejected U.S. pressure, stating that Tehran would not accept unilateral demands and declaring that “no one can make us surrender.”

    Meanwhile, a draft United Nations Security Council resolution backed by Bahrain, Saudi Arabia, the UAE, Kuwait and Qatar is expected to face a vote in the coming days. The proposal calls on Iran to halt attacks on shipping, remove sea mines and ensure safe maritime passage.

    UK stocks in focus

    Smith & Nephew

    Smith & Nephew (LSE:SN.) reported first-quarter underlying revenue growth of 3.1% to $1.5 billion, supported by strong performances in sports medicine and wound management. The medical technology company also announced a $500 million share buyback programme while maintaining its full-year guidance.

    Kingfisher

    Kingfisher (LSE:KGF) said chief executive Thierry Garnier will step down after nearly seven years in the role and is expected to become chief executive of Ahold Delhaize in 2027. The retailer also reported a 6% increase in annual adjusted pre-tax profit and confirmed it has started the search for a successor.

    J D Wetherspoon

    J D Wetherspoon (LSE:JDW) posted like-for-like sales growth of 3.4% for the 13 weeks to 26 April but warned that rising energy costs linked to the Iran conflict, alongside higher taxes, could leave full-year profits slightly below market forecasts.

    Diageo

    Diageo (LSE:DGE) surprised markets with a 0.3% increase in quarterly organic net sales, helped by strong demand for Guinness in Britain and Ireland and World Cup-related stocking activity in Latin America and the Caribbean. However, North America remained weak, with organic sales in the region declining 9.4%.

  • Diageo (DGE) maintains annual guidance despite uneven regional trading

    Diageo (DGE) maintains annual guidance despite uneven regional trading

    Diageo (LSE:DGE) reported mixed third-quarter performance, with reported net sales rising 2.3% to $4.5 billion, although underlying organic growth remained broadly flat.

    The drinks group benefited from strong high-single-digit growth across Europe, Latin America and the Caribbean, and Africa. However, these gains were largely offset by continued weaker trading conditions in North America and a slight decline in the Asia-Pacific region.

    Cost-saving programme and portfolio changes remain central to strategy

    Management said the company continues to advance its Accelerate efficiency programme, which is targeting approximately $300 million in cost savings by the end of fiscal 2026.

    Diageo also reaffirmed its full-year guidance while pursuing several portfolio reshaping initiatives aimed at improving financial flexibility and lowering leverage.

    These measures include the sale of the Royal Challengers Bengaluru business and the planned disposal of the company’s stake in East African Breweries.

    Emerging markets continue to provide growth support

    The company’s latest results highlighted the increasing importance of emerging markets within its global portfolio as stronger demand in Africa and Latin America helped offset softer consumer spending trends in more mature markets.

    Management continues to focus on premiumisation, operational efficiency and capital discipline as it navigates more difficult trading conditions in key regions.

    Margin pressure and leverage remain investor concerns

    Diageo’s broader outlook continues to be supported by relatively solid operating margins and underlying revenue growth. However, margin pressure, elevated leverage and less stable free cash flow generation remain areas of concern.

    Technical indicators also remain weak, with the shares trading below major moving averages, although valuation support is provided in part by the company’s comparatively high dividend yield.

    More about Diageo

    Diageo is a global alcoholic beverages company with a portfolio spanning spirits, beer and premium drinks brands. The group is best known for products including Scotch whisky, tequila and Guinness stout. Diageo operates across North America, Europe, Asia-Pacific, Latin America and the Caribbean, and Africa, focusing on premium international brands in both developed and emerging consumer markets.