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  • Rank Group Raises Profit and Dividend Despite Higher Taxes and Regulatory Costs

    Rank Group Raises Profit and Dividend Despite Higher Taxes and Regulatory Costs

    Rank Group (LSE:RNK) delivered another year of revenue and underlying profit growth in the 12 months to 30 June 2026, supported by improved trading across its businesses and strong returns from recent investment in gaming machines.

    Like-for-like net gaming revenue increased 6% to £834.1 million, marking a fifth consecutive year in which all of the group’s businesses recorded growth. Underlying operating profit climbed 21% to £78.6 million, while the operating margin improved to 9.4%.

    Return on capital employed also strengthened to 18.3%, helping support a 35% increase in the total dividend. Statutory profitability was less robust, however, reflecting separately disclosed costs including a payment fraud incident in Spain and expenses associated with a UK regulatory settlement.

    Digital Revenue Rises Despite Higher Gaming Duty

    Rank achieved growth across both its physical venues and digital operations despite facing cost inflation, increased taxation and a more demanding regulatory environment.

    Digital revenue advanced 8% over the year, with like-for-like growth accelerating to 12% during the fourth quarter. The performance came as Rank reduced above-the-line marketing expenditure to help mitigate the financial impact of the increase in Remote Gaming Duty to 40%.

    The group also continued to reshape its physical estate, closing nine underperforming Mecca venues as it focused investment on locations offering stronger prospective returns.

    Rank Targets £100 Million in Medium-Term Operating Profit

    Rank strengthened its financing position during the year by securing a new four-year £120 million revolving credit facility. At the year end, the group held net cash of £56.8 million before IFRS 16 adjustments, while reported net debt stood at £147.2 million.

    Management maintained its medium-term ambition of generating at least £100 million in underlying operating profit, supported by further operational improvements and investment across its venue and digital businesses.

    However, the company remains cautious about additional tax increases affecting land-based gaming. Rank has warned that further increases in the tax burden on highly regulated bingo halls and casinos could make some venues economically unviable, potentially leading to closures and ultimately reducing tax receipts generated by the sector.

    Tax and Technical Risks Temper Outlook

    Rank’s broader outlook is supported by solid financial performance and relatively attractive valuation metrics. Higher underlying earnings, improving margins and stronger returns on invested capital provide evidence of progress across the business.

    These positives are balanced by weaker technical indicators, with the shares showing a broader downtrend and negative momentum. The higher Remote Gaming Duty rate also represents a significant earnings headwind, while near-term cash requirements and lease-related costs could place additional pressure on financial performance.

    Continued digital growth and progress towards the £100 million underlying operating profit target will therefore be important measures of Rank’s ability to absorb the impact of higher taxation and regulatory costs.

    More About Rank Group plc

    The Rank Group Plc is a UK-listed gambling and entertainment company operating across both physical venues and digital gaming platforms.

    Its businesses include Grosvenor casinos and Mecca bingo clubs in the UK, Enracha venues in Spain and a portfolio of online gaming brands. Rank serves customers through gaming machines, live table games, bingo and digital platforms, with its operations concentrated in regulated gambling markets.

  • Savills Lifts First-Half Earnings as Eastdil Secured Acquisition Expands Global Platform

    Savills Lifts First-Half Earnings as Eastdil Secured Acquisition Expands Global Platform

    Savills (LSE:SVS) delivered higher revenue and underlying earnings in the first half of 2026, supported by growth across each of its business segments and an improvement in profitability from its North American operations.

    Revenue increased 9% to £1.23 billion, while underlying profit before tax climbed 47% to £34.3 million. Reported profit before tax, however, declined to £7 million as costs associated with acquisitions weighed on the statutory result.

    Despite those one-off expenses, the board increased the interim dividend by 5%, signalling confidence in the group’s underlying trading performance and the resilience provided by its less transaction-dependent consultancy and property management businesses.

    Eastdil Secured Deal Strengthens U.S. Presence

    Savills completed its acquisition of Eastdil Secured at the end of July 2026, significantly expanding the group’s position in global real estate capital advisory and strengthening its exposure to the strategically important U.S. market.

    The transaction also gives Savills greater access to major international institutional investors and creates opportunities to combine Eastdil Secured’s capital markets capabilities with the wider group’s global real estate advisory network.

    Eastdil Secured has continued to generate strong standalone revenue growth, while initial collaboration between the two businesses is beginning to emerge. Savills expects these opportunities to increase as integration progresses and clients gain access to the capabilities of the enlarged platform.

    Diversified Business Positioned for Market Recovery

    The acquisition creates a larger and more geographically diversified group that could benefit from a recovery in global real estate investment activity. Improving transaction volumes would provide additional support to Savills’ capital markets businesses, while recurring and less transactional operations continue to provide greater earnings stability.

    Nevertheless, uncertainty remains around the timing of a sustained recovery. Geopolitical tensions and political uncertainty in the UK could affect investment decisions, making transaction pipelines and the completion of individual deals more difficult to predict.

    Cash Flow and Leverage Support Outlook

    Savills’ wider outlook is supported by relatively stable financial performance, strong recent free cash flow and an improving leverage position. Technical indicators also point to constructive momentum in the shares.

    Valuation provides more moderate support, with the stock trading at a price-to-earnings multiple of approximately 18.9. Investors may also continue to assess risks associated with financing the Eastdil Secured acquisition, including potential dilution, alongside a limited governance overhang.

    Successful integration of Eastdil Secured and the pace of recovery in global property investment markets are therefore likely to be important drivers of Savills’ performance over the coming periods.

    More About Savills

    Savills plc is a global real estate advisory group providing transactional, consultancy, property management and facilities management services across major markets including North America, the UK, Continental Europe and Asia Pacific.

    Its operations span commercial and residential property advisory, capital markets and real estate management. The group serves institutional investors, corporations and private clients, with the Eastdil Secured acquisition significantly expanding its capabilities in global real estate capital advisory.

  • Rio Tinto Welcomes Long-Term Renewable Power Agreement for Tomago Aluminium

    Rio Tinto Welcomes Long-Term Renewable Power Agreement for Tomago Aluminium

    Rio Tinto (LSE:RIO) has backed a new agreement involving Tomago Aluminium, the Australian Government and the New South Wales Government that will provide Australia’s largest aluminium smelter with long-term, internationally competitive electricity through 2038.

    The arrangement provides greater certainty for the Tomago operation, which plays an important role in regional employment and Australia’s manufacturing sector. It also supports Rio Tinto’s integrated aluminium operations in eastern Australia and provides a clearer pathway towards lower-carbon production.

    Tomago to Invest A$1.1 Billion in Smelter

    As part of the agreement, Tomago Aluminium will enter into a 10-year power purchase agreement that will take effect after its existing electricity contract expires in 2028. From 2033, the electricity supplied under the arrangement is expected to come entirely from renewable energy sources.

    Tomago also plans to invest A$1.1 billion in the smelter, including A$100 million specifically allocated to decarbonisation initiatives. The investment is intended to strengthen the facility’s competitiveness while positioning it as an important supplier of lower-carbon aluminium for industries supporting the global energy transition.

    The long-term power arrangement also allows Tomago to continue providing demand-response services to the New South Wales electricity system, helping support grid stability as renewable generation becomes a larger part of the state’s energy mix.

    Australian Aluminium Operations Gain Greater Power Certainty

    The Tomago agreement follows a similar electricity arrangement secured in 2026 for Rio Tinto’s Boyne aluminium smelter in Queensland. As a result, Australia’s two largest aluminium smelters now have clearer routes towards long-term, competitive and increasingly low-carbon electricity supplies.

    Together, the agreements reinforce one of the world’s largest integrated aluminium supply chains and support Rio Tinto’s wider strategy to reduce Scope 1 and Scope 2 emissions while maintaining significant domestic manufacturing capacity.

    Cash Generation Supports Rio Tinto Outlook

    Rio Tinto’s broader outlook continues to benefit from solid profitability and operating cash generation. Recent company commentary has also highlighted improved cash generation, productivity gains and visible progress across major development projects.

    These strengths are partially offset by weaker conversion of operating cash into free cash flow and higher debt compared with the previous year. Technical indicators are also mixed, with Rio Tinto shares remaining below important intermediate-term moving averages.

    More About Rio Tinto

    Rio Tinto is a global mining and metals group with operations spanning commodities including iron ore, aluminium, copper and other industrial materials. Its Australian aluminium business includes bauxite mining, alumina refining and aluminium smelting operations across an integrated supply chain.

    The group owns a 51.55% interest in Tomago Aluminium, giving it significant exposure to Australia’s largest aluminium smelter. Its wider presence in eastern Australia makes Rio Tinto an important participant in domestic aluminium production, industrial employment and the country’s transition towards lower-carbon manufacturing.

  • Antofagasta Posts Stronger First-Half Earnings as Copper Prices Boost Cash Generation

    Antofagasta Posts Stronger First-Half Earnings as Copper Prices Boost Cash Generation

    Antofagasta (LSE:ANTO) delivered a strong financial performance in the first half of 2026, benefiting from higher commodity prices, disciplined cost management and favourable working capital movements. Revenue increased 18% to $4.48 billion, while EBITDA climbed 27% to $2.84 billion, taking the EBITDA margin to 63.4%.

    Higher realised prices for copper, gold and molybdenum supported the improvement, alongside tighter control of costs across the business. Operating cash flow rose 53%, while profit before tax advanced 72%. The miner also increased its interim dividend by 81%, with its balance sheet remaining in a solid position and net leverage staying relatively low.

    Copper Guidance Maintained Despite Severe Weather

    Operationally, Antofagasta maintained a fatality-free safety performance during the period. Severe weather affected production at Los Pelambres, but the disruption was contained sufficiently for the group to leave its full-year 2026 copper production guidance unchanged at between 625,000 and 655,000 tonnes.

    The company is also continuing to advance its major expansion programmes. Growth projects at Centinela and Los Pelambres remain scheduled for commissioning in 2027, providing additional capacity as Antofagasta positions itself to benefit from longer-term growth in global copper consumption.

    At Zaldívar, the group is progressing a $0.9 billion water pipeline investment designed to eliminate the operation’s reliance on continental water. The project could also help support a potential extension of the mine’s operating life to 2051.

    Growth Pipeline Supports Longer-Term Outlook

    Antofagasta’s outlook is underpinned by strong technical momentum and an encouraging earnings picture, including record profitability, substantial cash generation and a fully funded pipeline of growth investments. Rising demand for copper associated with electrification, renewable energy infrastructure and expanding digital networks provides an additional long-term tailwind.

    However, valuation and financial considerations provide some counterbalance. The company’s relatively high price-to-earnings multiple and modest dividend yield offer less valuation support, while increased leverage and uneven recent free cash flow remain factors for investors to monitor.

    More About Antofagasta

    Antofagasta plc is a Chile-focused copper mining group whose principal operations include Los Pelambres, Centinela and Zaldívar. The company is predominantly exposed to copper while also generating meaningful by-product revenue from gold and molybdenum.

    Its asset portfolio and cost position place Antofagasta among the higher-margin participants in the global copper industry, leaving the business closely exposed to structural demand trends including electrification, renewable power development and investment in digital infrastructure.

    Average Trading Vol

  • U.S. stock futures rise as softer annual inflation supports sentiment: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. stock futures rise as softer annual inflation supports sentiment: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. stock futures moved higher on Wednesday, pointing to a rebound at the opening bell after the major indices declined in the previous session, as July inflation figures broadly matched economists’ expectations.

    Futures strengthened following the Labor Department’s latest consumer price report, which showed prices rising 0.1% in July after declining 0.4% in June. The monthly increase was in line with forecasts.

    Core consumer prices, excluding food and energy, advanced 0.2% during July after showing no change in June. That reading also matched market expectations.

    Headline and core inflation rates ease

    Annual headline inflation slowed slightly to 3.4% in July from 3.5% in June, while the annual core rate moderated to 2.5% from 2.6%.

    Both readings were consistent with economists’ forecasts, potentially easing some concerns about persistent inflation and the implications for the Federal Reserve’s interest-rate policy.

    Technology shares linked to artificial intelligence could provide additional momentum after investors responded positively to quarterly results and guidance from CoreWeave (NASDAQ:CRWV) and Super Micro Computer (NASDAQ:SMCI).

    However, further gains in crude oil could temper risk appetite following deadly attacks involving vessels in the Red Sea and Gulf of Oman.

    Major Wall Street indices declined on Tuesday

    U.S. equities finished mostly lower on Tuesday after an uncertain start gave way to selling pressure later in the session, extending the modest declines recorded on Monday.

    The Nasdaq fell 159.91 points, or 0.6%, to 26,445.45. The S&P 500 lost 24.91 points, or 0.3%, to close at 7,728.20, while the Dow Jones Industrial Average declined 184.13 points, or 0.3%, to 53,791.85.

    Although all three benchmarks recovered from their intraday lows, they remained in negative territory at the closing bell.

    Hormuz uncertainty keeps crude prices elevated

    Oil prices contributed to Tuesday’s weaker market sentiment, with U.S. crude futures climbing more than 1% after surging by over 5% during Monday’s session.

    The continued advance reflected uncertainty over whether the Strait of Hormuz could be reopened.

    According to Reuters, Mohsen Rezaei, Secretary of Iran’s Supreme National Security Council, said the strategic waterway would remain closed until Tehran’s conditions were met.

    The approaching release of Wednesday’s CPI figures also encouraged investors to remain cautious during the previous session.

    Hardware and energy stocks buck broader decline

    Computer hardware shares were among Tuesday’s strongest performers despite weakness across the wider equity market. The NYSE Arca Computer Hardware Index jumped 4.6%, reaching its highest closing level in two months.

    Higher crude prices also lifted oil producers, pushing the NYSE Arca Oil Index up 2%.

    Housing stocks recorded notable gains, while steel and retail shares were among the weaker areas of the market.

  • European stocks muted as Middle East attacks weigh on sentiment: DAX, CAC, FTSE100

    European stocks muted as Middle East attacks weigh on sentiment: DAX, CAC, FTSE100

    European equities traded with little overall direction on Wednesday as fresh attacks on shipping involving the U.S. and Yemen’s Iran-aligned Houthis renewed concerns about potential supply disruptions and reduced hopes of bringing the months-long Iran conflict to an end.

    Major regional indices were mixed. France’s CAC 40 Index slipped 0.2%, while the U.K.’s FTSE 100 Index edged 0.1% higher and Germany’s DAX Index advanced 0.5% following confirmation that German inflation accelerated in July.

    German inflation rises to 2.8%

    Final figures from Destatis showed German consumer prices increased 2.8% year on year in July, accelerating from 2.3% in June and matching previous estimates.

    The rise was partly driven by higher energy prices following the end of the government’s fuel tax measures. The July reading was the highest since April, when inflation reached 2.9%.

    EU-harmonised inflation also increased as expected, reaching a three-month high of 2.8% in July compared with 2.4% in June.

    Balfour Beatty and ABN AMRO shares climb

    In corporate trading, Balfour Beatty (LSE:BBY) shares surged after the British construction group raised its annual operating profit forecast following a sharp increase in first-half earnings.

    Dutch lender ABN AMRO (EU:ABN) also advanced strongly after delivering solid second-quarter results and upgrading its full-year income guidance.

    Germany’s Indus Holding (TG:INH) rallied after reporting a substantial improvement in first-half earnings and raising its outlook for the full 2026 financial year.

    Bechtle and Bilfinger move lower

    Elsewhere, IT services provider Bechtle (TG:BC8) declined despite reporting higher second-quarter bottom-line earnings and increasing its guidance for the full financial year.

    Industrial services group Bilfinger (TG:GBF) also fell after indicating that its full-year EBITA margin is now expected to finish at the lower end of its guidance range.

  • Market Open: Balfour Beatty Guidance, Evoke Gaming Duties

    Market Open: Balfour Beatty Guidance, Evoke Gaming Duties

    UK markets open mixed as Balfour Beatty raises guidance, Evoke faces higher gaming duties and Brent crude rises on Hormuz risks.

    Market Overview

    The FTSE 100 opened unchanged at 10,844.19, while the Euronext 100 edged 0.01 per cent lower to 1,976.84 and Germany’s DAX gained 0.19 per cent to 26,442.42. European markets remained cautious as investors monitored the escalating US-Iran standoff over the Strait of Hormuz and awaited US inflation data. Overnight on Wall Street, the Nasdaq closed lower at 26,445.45, while the S&P 500 declined to 7,728.20.

    Commodity markets were mixed, with copper and natural gas higher, gold slightly lower and Brent crude rising as the closure of the Strait of Hormuz and continuing Houthi strikes kept supply risks in focus. Against sterling, the US dollar, Japanese yen and Australian dollar strengthened marginally, the Swiss franc weakened slightly and the euro was unchanged, while Bitcoin rose slightly.

    Market Numbers

    FTSE 100: Unchanged (0.00%), 10,844.19
    Euronext 100: Down (-0.01%), 1,976.84
    DAX: Up (+0.19%), 26,442.42
    NASDAQ: Down, 26,445.45
    S&P 500: Down, 7,728.20

    In the Headlines

    Guidance raised – Balfour Beatty (LSE:BBY)
    Infrastructure group Balfour Beatty raised its 2026 guidance after first-half underlying profit from its earnings-based businesses increased 42 per cent, supported by stronger UK and US operations. Higher expectations for profit growth and cash generation, alongside increased shareholder returns, strengthen visibility for the year ahead.

    Gaming duties weigh – Evoke (LSE:EVOK)
    Betting and gaming group Evoke reported broadly stable first-half revenue, with online growth helping offset retail closures, but higher UK gaming duties weighed on profitability. The company is pursuing efficiency measures while progressing towards the proposed Bally’s Intralot transaction.

    Currencies (vs GBP)

    USD: Up (+0.01%), $1.3508
    CHF: Down (-0.00%), Fr.1.0957
    EUR: Unchanged (0.00%), €1.1703
    JPY: Up (+0.00%), ¥215.154
    AUD: Up (+0.00%), $1.9125
    Bitcoin (BTC/GBP): Up, £47,118.43

    Commodities

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

  • Markets await U.S. inflation data as CoreWeave rallies and Hormuz risks persist: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Markets await U.S. inflation data as CoreWeave rallies and Hormuz risks persist: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S. equity futures traded mostly higher as investors awaited July inflation data that could influence expectations for Federal Reserve monetary policy. CoreWeave (NASDAQ:CRWV) rallied after artificial intelligence demand helped the cloud infrastructure provider deliver another quarter of record revenue, while high investment costs remained in focus. In the Middle East, shipping through the Strait of Hormuz declined to a one-week low as hopes of a near-term reopening continued to fade.

    Wall Street futures advance ahead of CPI

    U.S. stock futures were largely in positive territory ahead of the consumer price index release, with markets assessing how the latest inflation reading could affect the Fed’s policy path for the rest of 2026.

    At 03:09 ET (07:09 GMT), Dow futures were little changed. S&P 500 futures rose 13 points, or 0.2%, while Nasdaq 100 futures gained 117 points, or 0.4%.

    The advance followed a weaker previous session for Wall Street’s main indices, with volatile crude prices contributing to uncertainty. Conflicting developments in the Middle East caused oil to swing sharply, adding to fears that prolonged high energy prices could keep inflation elevated and increase pressure on central banks.

    Some economic indicators offered encouragement, however. Deutsche Bank analysts said recent U.S. releases “generally came in on the positive side,” with small business optimism among the figures exceeding forecasts.

    Inflation figures could shape Fed expectations

    July’s CPI report is now the key focus for investors, with headline inflation forecast to slow marginally to 3.4% year on year from 3.5%.

    Energy costs remain an important component of the inflation outlook. Gasoline prices have been elevated since the Iran war started in late February, raising the prospect that higher energy costs could feed into broader price pressures.

    “Core” CPI, which excludes food and energy, is expected to ease to 2.5% from 2.6%.

    Vital Knowledge analysts said inflation would remain substantially above the Fed’s target even if the forecasts prove accurate. While higher rates could be used to tackle persistent price growth, tighter policy could also put additional pressure on economic activity and an increasingly fragile labour market.

    Deutsche Bank noted that policymakers generally favour the core personal consumption expenditures price index over CPI when assessing inflation. However, the PCE figures are not scheduled for release for another couple of weeks.

    “But today’s CPI and tomorrow’s [producer price index] (where a few components feed into the PCE) will offer us an initial steer on prices in July and will help to shape the upcoming market narrative,” the analysts wrote in a note.

    AI boom drives another record quarter for CoreWeave

    CoreWeave shares climbed more than 15% in extended-hours trading after the company reported record revenue for a fifth consecutive quarter, supported by intense demand for AI computing capacity.

    Its backlog of contracted future sales increased to $104 billion, almost double the level recorded in November. The company also reported $25 billion in net new customer commitments secured so far during the current quarter.

    Chief Executive Michael Intrator called it the “strongest bookings quarter” in CoreWeave’s history.

    CoreWeave’s business involves acquiring advanced Nvidia AI processors, installing them in data centres and renting the resulting computing capacity to customers. June-quarter revenue reached $2.58 billion, surpassing analysts’ forecasts.

    The scale of the investment required to satisfy demand remains a key concern. Vital Knowledge analysts said capital expenditure was “elevated and ran ahead of expectations.” CoreWeave has recorded $1.64 billion in net losses since its initial public offering in March 2025 as it continues spending heavily to expand capacity.

    Hormuz vessel numbers decline further

    Only eight vessels were tracked through the Strait of Hormuz on Tuesday, according to shipping data reported by Reuters, marking the lowest level for a week.

    Ship operators have increasingly sought to avoid the strategically important passage as violence in the Middle East continues. Fresh attacks announced by the U.S. and the Iran-backed Houthis in Yemen on Tuesday further reduced optimism that shipping through the strait could soon return to normal.

    Hormuz carried around one-fifth of the world’s oil before the Iran war erupted in late February. The latest vessel count was below the 10-day average of roughly 12 and was the lowest recorded since August 5, Reuters said.

    Brent crude rebounds as reopening hopes fade

    Brent crude futures gained 0.6% to $89.46 a barrel after another volatile session driven by developments surrounding Hormuz.

    Comments from Qatar’s Foreign Ministry and Pakistan’s Defense Minister initially encouraged hopes of progress towards an agreement to reopen the strait, briefly pushing oil prices lower. Brent fell as far as $86.60 a barrel during the session.

    Those losses were subsequently reversed after Iranian state media indicated that Tehran would keep Hormuz blocked until conditions presented over the weekend were fulfilled. Iran’s Secretary of the Supreme National Security Council separately said that any agreement with Oman concerning the waterway would “remain a separate issue from the strait’s closure.”

  • European stocks tread cautiously as oil rally and US inflation take centre stage: DAX, CAC, FTSE100

    European stocks tread cautiously as oil rally and US inflation take centre stage: DAX, CAC, FTSE100

    European equities were subdued on Wednesday, holding close to record highs as a six-session advance in crude oil and worsening tensions in the Middle East kept investors cautious ahead of a crucial US inflation report.

    The pan-European Stoxx Europe 600 Index edged 0.1% higher, with major regional markets showing similarly limited moves. Germany’s DAX gained 0.2%, France’s CAC 40 moved 0.1%, while London’s FTSE 100 was virtually unchanged.

    Economic figures from Europe offered some stability before attention shifted towards the US data. Final inflation readings for July confirmed annual headline consumer price growth of 2.8% in both Germany and Italy. However, those figures were overshadowed by renewed volatility in energy markets, with crude oil recording its longest run of consecutive gains since late April.

    Brent crude climbed towards $89 a barrel as the conflict involving Iran and shipping routes through the Persian Gulf showed little sign of easing. Despite repeated claims from U.S. President Donald Trump that a peace agreement was close, negotiations appeared to have reached a deadlock.

    Prospects for a diplomatic breakthrough weakened further after Trump introduced tougher counter-conditions, including a demand for Tehran to pay direct compensation related to the conflict. Iran responded by warning that the Strait of Hormuz would remain closed until Washington satisfied its demands.

    Tensions at sea also intensified after Yemen’s Iran-aligned Houthis carried out fresh attacks against military supply vessels.

    The continued increase in energy and other input costs adds another challenge to an already uncertain economic environment, with investors now turning their attention to Wednesday’s US Consumer Price Index report.

    The inflation figures are particularly important because of the increasingly difficult policy decision facing the Federal Reserve. Last week’s unexpectedly weak US employment report showed the economy lost 23,000 jobs in July and included substantial downward revisions to previous figures. Following the report, market-implied expectations for a September Fed rate increase fell to around 45%, compared with 67% beforehand.

    A weaker-than-anticipated inflation reading could reinforce expectations that slowing labour demand is helping bring price pressures closer to target, potentially allowing central banks on both sides of the Atlantic to keep interest rates unchanged into the autumn.

    In contrast, stronger inflation driven by persistent energy and services costs could increase concerns about “stagflation,” a scenario in which policymakers are forced to maintain elevated borrowing costs even as economic growth deteriorates.

    Despite Wednesday’s cautious trading, the STOXX 600 has gained approximately 11% since the beginning of the year, highlighting the resilience of European equities following a particularly volatile July.

    The index has advanced 1.75% so far in August, although that trails the roughly 3% rise recorded by the S&P 500 Index over the same period.

    US markets have benefited significantly from gains among mega-cap technology companies and artificial intelligence-related stocks. European indices, by comparison, have greater exposure to industrial, automotive and consumer discretionary companies, leaving them more sensitive to weak regional growth, tariffs and rising raw-material costs.

    The approaching end of the second-quarter earnings season is also reducing one source of support for European equities.

    Corporate results have helped underpin markets during the past month, with aggregate STOXX 600 earnings showing growth of almost 21% year-on-year. Banking groups have benefited from healthy net interest margins, while defence and power-grid infrastructure companies have experienced strong demand.

    However, most European companies have now released their quarterly results. As a result, the flow of positive earnings surprises that helped support equities through late July is fading, increasing the market’s dependence on economic data and geopolitical developments for its next significant move.

    European stocks on the move

    Among individual companies, Vestas (TG:VWSB) surged 15% after upgrading its full-year earnings outlook.

    Bilfinger (TG:GBF) dropped more than 6% following the release of its second-quarter results, while Balfour Beatty (LSE:BBY) climbed almost 10% after raising its profit forecasts.

  • FTSE 100 slips as US-Iran tensions over Strait of Hormuz escalate

    FTSE 100 slips as US-Iran tensions over Strait of Hormuz escalate

    UK equities moved slightly lower on Wednesday as worsening tensions between the United States and Iran over the Strait of Hormuz took attention away from closely watched US inflation figures due later in the day.

    The FTSE 100 was 0.08% lower as of 03:25 ET (07:25 GMT). Elsewhere in Europe, Germany’s DAX advanced 0.12%, while France’s CAC 40 declined 0.19%. Sterling was broadly steady against the US dollar, with GBP/USD edging 0.03% higher to 1.3510.

    Geopolitical concerns intensified early on Wednesday after U.S. Central Command said American forces had disabled the steering system of the Panama-flagged cargo ship M/V Vela Nova in the Gulf of Oman. According to CENTCOM, the vessel had attempted to breach the US blockade affecting Iran-bound shipping.

    CENTCOM said a US Navy MH-60 helicopter fired two Hellfire missiles into the ship’s engine room after its crew failed to respond to repeated warnings. It added that, as of August 11, US forces had redirected 55 vessels, disabled three and boarded another two.

    U.S. President Donald Trump reinforced Washington’s position on Tuesday, reiterating that the United States had “total control” of the strategic waterway. Trump said, “We have total control over the Strait of Hormuz right now… We own it,” while warning that any Iranian retaliation would face a “forceful” response.

    Iranian foreign ministry spokesperson Esmail Baghaei disputed Washington’s account of the situation, blaming the closure of the Strait on “US-Israeli military aggression”. He also said negotiations between Tehran and Oman over a new transit route were progressing “smoothly and constructively,” although reopening the waterway would depend on the removal of conditions imposed on Iran.

    In a separate development, Trump confirmed reports that his aircraft was secretly changed during his departure from last month’s NATO summit in Turkiye because of an alleged Iranian assassination threat.

    Jefferies strategist Mohit Kumar cautioned that a lasting resolution could prove difficult. In a note to clients, he said “there is no easy way out of the current situation, with Iran unlikely to give up control over the Strait and US unwilling to accept tolls,” adding that any agreement reached in the near term would probably be “more a fudge… rather than a long-lasting peaceful solution.”

    Energy prices moved higher as traders continued to assess potential disruption to oil supplies through the Strait. Brent crude gained 0.66% to $89.50, while WTI crude increased 0.77% to $83.83. Gold futures rose 0.41% to $4,459.47, with spot gold advancing 0.73% to $4,399.69.

    UK round-up

    Balfour Beatty (LSE:BBY) lifted its 2026 operating profit growth guidance to the low double digits, supported by robust demand across its US building operations and UK power infrastructure activities.