ADVFN UK Market News

Category: Top Story

  • Serco delivers higher first-half profit as defence growth supports margins and shareholder returns

    Serco delivers higher first-half profit as defence growth supports margins and shareholder returns

    Serco Group plc (LSE:SRP) reported a solid first-half performance, with revenue increasing 4% to £2.5 billion and underlying operating profit rising 9% at constant currency to £157 million. The improvement was driven by 10% organic growth in the Defence division and a more favourable mix of higher-margin contracts. Underlying operating margin increased to 6.2%, while the company maintained a strong balance sheet with leverage of 0.75 times EBITDA. Reflecting confidence in its financial position, Serco increased its 2026 share buyback programme to £150 million and raised its interim dividend by 10%.

    Management reaffirmed its full-year guidance, forecasting revenue of around £5 billion, organic growth of approximately 3% and underlying operating profit of about £300 million. Free cash flow is expected to reach around £160 million for the full year despite lower cash generation during the first half. Serco also highlighted a £12.8 billion bid pipeline, with significant opportunities across the defence sector and North America. The company continues to simplify its operations by focusing on its three core markets—Defence, Justice & Immigration, and Citizen Services—while making progress on major contracts that are expected to support long-term profitability and sustainable growth.

    The investment outlook remains positive, supported by strong cash generation, a healthy balance sheet and an attractive valuation based on a low price-to-earnings ratio. Technical indicators also remain favourable, with the shares continuing to trade in an upward trend. Management’s outlook is supported by a robust pipeline and expectations for further profit growth, although exposure to immigration-related contracts, higher financing costs and the execution of large projects remain potential risks.

    About Serco Group plc

    Serco Group plc is an international provider of outsourced public services, employing more than 50,000 people across sectors including defence, space, migration, justice, healthcare, transport and customer services. The company partners with governments around the world to deliver essential public services through long-term contracts.

    Its capabilities include programme management, systems integration, engineering, advisory services, asset management and operational support, enabling governments to improve service delivery while managing complex infrastructure and public sector operations.

  • Persimmon reports higher first-half earnings as home completions continue to grow

    Persimmon reports higher first-half earnings as home completions continue to grow

    Persimmon (LSE:PSN) delivered a strong first-half performance, increasing home completions by 13% to 5,189 while new housing revenue also rose 13% to £1.48 billion. Underlying operating profit climbed 10% to £189.1 million despite a modest reduction in operating margin. Management attributed the performance to gains in market share, stronger brand positioning and the benefits of greater vertical integration, although affordability pressures and higher construction costs continue to present challenges across the UK housing market.

    The housebuilder now expects to complete around 12,500 homes during 2026, placing delivery at the upper end of its previous guidance range. Profit expectations remain in line with market forecasts, supported by a 5% increase in the private forward order book to £1.31 billion. Looking ahead, Persimmon plans to expand its cost-efficiency initiatives and maintain a disciplined approach to land investment in preparation for anticipated build cost inflation in 2027. Over the medium term, the company aims to increase housing volumes, strengthen cash generation and deliver sustainable shareholder returns while maintaining a robust balance sheet and meeting its building safety and remediation commitments.

    The investment outlook remains mixed. Although Persimmon benefits from a strong balance sheet with low levels of debt, recent cash flow performance has weakened and profitability remains below the peak levels achieved in previous years. Technical indicators also remain subdued, with the shares trading below key moving averages and negative momentum signals. However, a reasonable valuation and a dividend yield of around 4.7% continue to provide support for the investment case.

    About Persimmon

    Persimmon is one of the UK’s largest residential property developers, building homes through its Persimmon Homes, Charles Church and Westbury Partnerships brands. The company develops both private and affordable housing across the UK, supported by a nationwide land portfolio and a vertically integrated operating model.

    By combining efficient construction processes with disciplined land acquisition and broad geographic coverage, Persimmon aims to deliver high-quality homes while generating sustainable long-term returns in the UK’s structurally undersupplied housing market.

  • PZ Cussons returns to profit growth as balance sheet strengthens and dividends increase

    PZ Cussons returns to profit growth as balance sheet strengthens and dividends increase

    PZ Cussons (LSE:PZC) delivered a strong performance for the 2026 financial year, with like-for-like revenue increasing 5.8% and growth recorded across each of its four core markets as well as its ten largest brands. Adjusted operating profit rose 24.5%, excluding the contribution from the divested PZ Wilmar joint venture, while the company reduced net debt to £25 million through improved cash generation and asset disposals. Reflecting the stronger financial position, the board increased the dividend by 2.8%, marking a return to dividend growth, although management cautioned that macroeconomic uncertainty remains. Trading at the start of the 2027 financial year has been in line with expectations.

    During the year, the company completed a strategic review of its African operations and decided to retain and develop the business while introducing tighter risk management measures. PZ Cussons also completed the £51.2 million sale of its interest in the PZ Wilmar joint venture, simplifying the group’s portfolio and reducing its exposure to fluctuations in the Nigerian naira. Elsewhere, the company refreshed the growth strategy for its premium St.Tropez brand, increased marketing investment behind major product launches in key markets and introduced a new capital allocation framework focused on maintaining moderate leverage while supporting progressive dividend growth. It also announced that two non-executive directors will step down at the next annual general meeting.

    The investment outlook remains mixed. While underlying profitability and cash flow quality continue to present challenges, the company’s improving balance sheet and debt reduction provide greater financial flexibility. Technical indicators remain supportive, with the shares continuing to trade in an upward trend, although momentum appears relatively stretched. Valuation is balanced by an attractive dividend yield but offset by a negative price-to-earnings ratio, while management’s updated guidance and deleveraging progress are encouraging despite ongoing foreign exchange risks and execution challenges during the second half of the financial year.

    About PZ Cussons

    PZ Cussons is a Manchester-based consumer goods company that develops and markets personal care, home care and baby care products across the UK, Australia and New Zealand, Nigeria and Indonesia. Its portfolio includes well-known brands such as Carex, Cussons Baby, Imperial Leather, Morning Fresh and St.Tropez, serving consumers in both developed and emerging markets.

    The company continues to focus on building strong local brands while embedding sustainability into its long-term strategy. Through targeted investment, portfolio optimisation and disciplined capital allocation, PZ Cussons aims to deliver sustainable growth and long-term value for shareholders.

  • Admiral reports resilient first-half performance as growth and shareholder returns remain in focus

    Admiral reports resilient first-half performance as growth and shareholder returns remain in focus

    Admiral Group (LSE:ADM) delivered a resilient set of first-half 2026 results, reporting profit before tax from continuing operations of £429.2 million, an 18% decline from the record performance achieved in the first half of 2025. Group turnover remained broadly unchanged at £3.11 billion, while return on equity stayed robust at 45%. The insurer increased its customer base and insured risks by 5% to more than 12 million, supported by continued expansion outside its core UK motor insurance business. Its post-dividend solvency ratio remained strong at 190%.

    Performance varied across the group’s operations. UK Motor earnings were lower as previously reduced premium rates and higher reinsurance expenses weighed on profitability. However, this was partly offset by strong contributions from the UK household, travel and pet insurance divisions, alongside a significant improvement in the European insurance business. Admiral Money also delivered stronger earnings, with gross loan balances increasing by 39%. The integration of the Flock acquisition continues to progress, while the board announced an interim dividend, lower than the previous year, together with a £45 million share buyback. Combined, these measures will return £258.8 million to shareholders under the company’s updated capital allocation framework.

    The investment outlook remains supported by solid financial fundamentals, including improving cash generation and substantially lower leverage, as well as an attractive valuation characterised by a relatively low price-to-earnings ratio and a strong dividend yield. However, technical indicators remain only partially supportive, with the shares still trading below their 200-day moving average. Management also indicated that profit growth is likely to remain subdued through 2026 as the UK motor insurance market continues to face cyclical pricing pressures and elevated claims trends.

    About Admiral Group

    Admiral Group is a UK-based insurance and financial services company specialising in personal lines products, including motor, home, travel and pet insurance. In addition to its established UK operations, the group continues to expand across European insurance markets while growing its consumer lending business through Admiral Money.

    The company is also investing in technology-led insurance solutions and future mobility, including electric vehicle products and usage-based insurance capabilities enhanced by its acquisition of Flock. These initiatives form part of Admiral’s strategy to diversify its earnings base and strengthen long-term growth opportunities.

  • U.S. futures point higher as lower oil prices and earnings lift sentiment: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. futures point higher as lower oil prices and earnings lift sentiment: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. equity futures traded in positive territory on Wednesday, indicating another higher open as investors looked to build on the recent rally that has carried the Dow Jones Industrial Average and the S&P 500 to fresh all-time closing highs.

    Confidence remained supported by easing energy prices and expectations that diplomatic negotiations could soon lead to the reopening of the Strait of Hormuz.

    Oil retreat continues to underpin markets

    The recent advance in U.S. equities has coincided with a sharp fall in crude oil prices, which have dropped by more than 10% over the past two sessions.

    Although oil prices edged higher during Wednesday’s trading, market participants continued to focus on reports suggesting the United States and Iran are moving closer to an agreement that would restore shipping through the strategically important Strait of Hormuz.

    Disney boosts pre-market sentiment

    Corporate earnings remained another source of support for the market.

    Disney (NYSE:DIS) gained more than 3% in pre-market trading after reporting fiscal third-quarter results that surpassed analyst expectations, adding to the positive tone created by the latest earnings season.

    Record highs extend across Wall Street

    Stocks posted another powerful advance on Tuesday, with all three major U.S. indices finishing comfortably higher.

    The Dow Jones Industrial Average climbed 907.47 points, or 1.7%, to a record close of 54,085.88.

    The Nasdaq Composite advanced 671.10 points, or 2.6%, ending at 26,584.99, while the S&P 500 rose 136.02 points, or 1.8%, to a new record of 7,736.52.

    Although the major averages gave back part of their intraday gains before the close, investor appetite remained strong.

    Palantir and lower oil prices drive momentum

    Wall Street also benefited from another steep decline in oil prices. U.S. crude futures dropped 5.7% on Tuesday after losing more than 5% in the previous session.

    Prices reversed lower after U.S. Treasury Secretary Scott Bessent said an agreement between Washington and Tehran to reopen the Strait of Hormuz could be reached within days.

    Technology stocks also outperformed after Palantir (NASDAQ:PLTR) reported quarterly results that exceeded expectations and lifted its full-year guidance, sending the shares almost 30% higher.

  • European shares edge higher after reaching record levels: DAX, CAC, FTSE100

    European shares edge higher after reaching record levels: DAX, CAC, FTSE100

    European equity markets traded modestly higher on Wednesday after closing at fresh record highs in the previous session, supported by another round of encouraging corporate earnings and continued optimism surrounding negotiations between the United States and Iran over reopening the Strait of Hormuz.

    Britain’s FTSE 100 gained 0.5%, Germany’s DAX added 0.2%, while France’s CAC 40 advanced 0.1%.

    Corporate earnings remain the main market driver

    Among individual stocks, Ibstock (LSE:IBST) declined 2.4% after the building materials group reported lower first-half revenue and indicated that full-year 2026 profit is likely to come in at the lower end of its guidance range.

    Glencore (LSE:GLEN) climbed 3.3% after stronger commodity prices helped the mining and trading group deliver a sharp increase in first-half earnings.

    Next (LSE:NXT) rallied 6.5% after upgrading its earnings outlook for the third time during the current financial year.

    Coca-Cola HBC (LSE:CCH) gained 4% after improving its full-year profit forecast following another solid set of results.

    Sandoz (LSE:0SAN) jumped almost 8% after reporting second-quarter net sales growth of 9%, comfortably ahead of market expectations.

    Mixed performance across healthcare and industrials

    Novo Nordisk (NYSE:NVO) fell 3.7% after announcing that one of its experimental medicines failed to reduce the risk of heart attack or stroke in a late-stage clinical study.

    Schaeffler (TG:SHA0) advanced 1.3%. The German automotive and industrial supplier reported second-quarter profit broadly in line with expectations and unveiled plans to reduce its domestic workforce through an expanded phased-retirement programme.

    Infineon Technologies (TG:IFX) dropped nearly 6%, despite reporting record quarterly revenue and raising both its full-year revenue forecast and adjusted free cash flow guidance.

    Siemens Energy (TG:SIE) added 1.2% after announcing record third-quarter sales, margins and order intake.

    Heineken extends gains after strong results

    Heineken (EU:HEIA) rose 2.5% after the Dutch brewer posted stronger-than-expected first-half profit and reaffirmed its earnings outlook for the full year.

  • Wall Street futures edge higher as investors assess Middle East developments and major earnings: Dow Jones, S&P, Nasdaq

    Wall Street futures edge higher as investors assess Middle East developments and major earnings: Dow Jones, S&P, Nasdaq

    US equity futures traded modestly higher on Wednesday as investors balanced signs of diplomatic progress in the Middle East against a fresh round of high-profile corporate earnings. Reports from SpaceX (NASDAQ:SPCX), Advanced Micro Devices (NASDAQ:AMD) and Novo Nordisk (NYSE:NVO) dominated pre-market trading.

    While hopes of easing geopolitical tensions supported broader sentiment, several individual stocks experienced sharp moves following earnings announcements and executive commentary.

    Markets gain on hopes of a breakthrough over the Strait of Hormuz

    At 03:09 ET (07:09 GMT), futures on the Dow Jones Industrial Average rose 156 points, or 0.3%. S&P 500 futures added 0.4%, while Nasdaq 100 futures advanced 0.3%.

    Wall Street ended the previous session in positive territory after US Treasury Secretary Scott Bessent indicated that negotiations with Iran over reopening the Strait of Hormuz could soon produce an agreement. Officials in Qatar also pointed to encouraging progress in regional talks.

    Lower crude prices added further support by reducing concerns that energy costs could reignite inflationary pressures or force central banks to maintain higher interest rates for longer. Treasury yields also moved lower before comments from Kansas City Federal Reserve President Jeffrey Schmid, who said inflation would require “tighter policy” before returning to the Fed’s 2% target.

    Corporate earnings continued to underpin investor confidence. Palantir (NASDAQ:PLTR) surged almost 30% after lifting its annual revenue forecast, with Chief Executive Alex Karp describing quarterly sales growth as “otherworldly.” Snap (NYSE:SNAP) also rallied after narrowing its quarterly loss, while Caterpillar (NYSE:CAT) climbed more than 5% after raising its sales outlook for 2026.

    According to Deutsche Bank, investors also continued rotating back into semiconductor and AI infrastructure stocks, becoming “increasingly willing to lean back into the capex theme that looked under pressure” during July’s market volatility.

    Trump says negotiations with Iran are progressing

    US President Donald Trump said talks between Washington and Tehran had been “very good,” fuelling speculation that a resolution to months of tensions in the Gulf may be approaching.

    Speaking with Fox News, Trump said the Strait of Hormuz would be “open very soon” and warned that Iran would “get hit really hard” if it abandoned a potential agreement.

    Despite the encouraging rhetoric, analysts cautioned that investors remain wary after several previous rounds of negotiations failed to deliver lasting results.

    “Markets have seen plenty of false dawns throughout this conflict, so plenty of attention will be on whether a deal is announced imminently and its details,” Deutsche Bank analysts said.

    Brent crude later recovered to trade around 0.8% higher at $80.01 per barrel after falling below the $80 mark in the previous session.

    Heavy investment overshadows strong SpaceX revenue growth

    SpaceX shares fell more than 7% in extended trading despite reporting a sharp increase in quarterly revenue.

    The aerospace and satellite communications company generated second-quarter revenue of $7.8 billion, up 92% year-on-year, while narrowing its net loss. However, investors focused on the company’s heavy investment programme, which pushed free cash flow further into negative territory.

    Capital expenditure reached $18.36 billion during the quarter, including $15.8 billion invested in the company’s artificial intelligence operations. Meanwhile, revenue from Starlink increased 66% to $4.3 billion as subscriber numbers doubled.

    Chief Executive Elon Musk reiterated his long-term ambitions, saying the company ultimately aims to generate $1 trillion in annual revenue and suggesting orbital data centres could become a reality next year.

    “[T]he revenue and EBITDA results are great, but the cash flow numbers are pretty ugly,” analysts at Vital Knowledge said.

    Musk comments weigh on AMD despite record performance

    Advanced Micro Devices shares also moved lower after Musk announced that SpaceX would rely exclusively on Nvidia’s Blackwell AI platform rather than purchasing AMD processors.

    He described Nvidia as offering the “best architecture” and confirmed that SpaceX would “build exclusively” using its technology.

    The announcement overshadowed another record quarter for AMD.

    The semiconductor manufacturer reported revenue of $11.5 billion for the quarter ended 27 June, slightly exceeding analyst expectations and marking its fifth consecutive quarter of record sales.

    Revenue from AMD’s data centre division climbed to a record $6.7 billion, accounting for 58% of total company revenue compared with 42% a year earlier, underscoring continued growth in AI infrastructure demand.

    Novo Nordisk disappoints despite improving guidance

    Novo Nordisk (NYSE:NVO) raised its full-year outlook, forecasting a smaller decline in sales and operating profit than previously expected as demand for its obesity treatments remained resilient.

    However, the company’s shares declined after sales of the oral version of Wegovy came in below market forecasts and an experimental next-generation weight-loss treatment delivered disappointing clinical trial data.

    Novo Nordisk now expects adjusted sales and operating profit to decline by up to 6% at constant exchange rates, improving on its earlier guidance for declines of between 4% and 12%.

    Second-quarter sales of oral Wegovy totalled 3.2 billion Danish kroner, missing analyst estimates of 3.3 billion kroner, while injectable Wegovy generated revenue of 19.48 billion kroner.

  • European shares remain close to record highs as earnings support investor confidence: DAX, CAC, FTSE100

    European shares remain close to record highs as earnings support investor confidence: DAX, CAC, FTSE100

    European stock markets traded near historic highs as another round of encouraging corporate earnings helped offset geopolitical uncertainty and mixed economic data. Lower oil prices also provided additional support, improving overall market sentiment.

    The STOXX 600 advanced 0.4%, remaining close to record territory as upbeat quarterly results from companies across the healthcare, industrial and logistics sectors reinforced confidence among investors.

    Germany’s DAX gained 0.5%, France’s CAC 40 edged 0.1% higher and London’s FTSE 100 added 0.4%.

    Falling oil prices and diplomatic progress improve market mood

    Energy markets also contributed to the positive tone, with Brent crude declining 1.4%, easing concerns over inflation and helping to reduce pressure on government bond yields.

    Investors also welcomed reports of gradual diplomatic progress in the Middle East. Officials in Qatar said mediators continued to move forward in discussions aimed at easing tensions between the United States and Iran, although no detailed agreement has yet been made public.

    Despite continued geopolitical uncertainty, solid corporate earnings and improved business outlooks remain the main drivers of European equity markets. Strong performances from sectors such as pharmaceuticals and energy infrastructure have encouraged investors to maintain exposure to equities.

    Company earnings dominate trading

    Corporate earnings remained the principal catalyst across European markets.

    Novo Nordisk A/S (TG:NOV) raised its full-year sales and profit forecasts as demand for its GLP-1 diabetes and weight-loss treatments remained strong worldwide. Despite the improved guidance, the company’s shares fell 3.4%.

    Siemens Energy AG (TG:SIE) jumped 5% after reporting third-quarter profit ahead of expectations, benefiting from robust demand for power grid equipment driven by the expansion of artificial intelligence data centres.

    DHL Group (TG:DHL) declined 1.7%, even after delivering second-quarter earnings above market forecasts and expanding its share buyback programme.

    Heineken NV (EU:HEIA) gained 2.5% after first-half operating profit increased, supported by cost-saving measures, including approximately 3,000 job reductions, which helped offset weaker sales volumes in some markets.

    Semiconductor sector remains in focus

    Technology stocks also attracted attention after Reuters reported that South Korean memory chip manufacturers SK Hynix Inc. (NASDAQ:SKHY) and Samsung Electronics Co. (USOTC:SSNHZ) are assessing semiconductor manufacturing equipment produced by China’s Advanced Micro Fabrication Equipment Inc., highlighting continued changes across global semiconductor supply chains.

    Infineon Technologies (TG:IFX) fell 2.5% following the release of its third-quarter results.

    Investors are now looking ahead to the release of the US ADP private payrolls report for July, which is expected to provide further insight into labour market conditions ahead of Friday’s closely watched nonfarm payrolls data.

  • Europe’s established technology leaders are finding new momentum from AI

    Europe’s established technology leaders are finding new momentum from AI

    Artificial intelligence was widely expected to create the biggest opportunities for the companies developing the underlying models. However, recent corporate results indicate that some of Europe’s long-established technology businesses are becoming major beneficiaries as enterprises accelerate AI adoption.

    Companies including SAP (TG:SAP), Capgemini (EU:CAP), Sopra Steria (EU:SOP) and OVHcloud (EU:OVH) have all reported improving demand, stronger financial performance or more optimistic guidance as businesses shift from AI experimentation to large-scale implementation.

    Integration is becoming the real AI challenge

    As organisations expand their use of artificial intelligence, they are discovering that integrating AI into existing systems is proving far more difficult than simply accessing the technology itself.

    Rather than depending on a single AI platform, many companies are expected to combine multiple models, selecting different solutions according to performance, security and regulatory requirements. As a result, the key challenge is no longer choosing the best model, but ensuring AI works seamlessly alongside existing software, corporate data and established business processes.

    “AI applications are the battleground, and that is where most value will be created,” UBS said in a recent note.

    This trend favours Europe’s established software providers, consulting firms and cloud infrastructure companies, whose expertise has long centred on integrating complex enterprise technologies.

    Legacy systems create opportunities for technology specialists

    Most large organisations operate with decades-old software, fragmented databases and heavily customised applications. Introducing AI into these environments requires systems that can securely access live company data, comply with governance rules, maintain audit trails and integrate into existing employee workflows.

    Managing this complexity is becoming one of the biggest barriers to wider AI deployment. According to Boston Consulting Group, AI implementation is advancing faster than companies’ ability to manage it effectively, with more than 70% of investors expressing concern over whether businesses possess the technical and operational capabilities needed to succeed.

    As deployment accelerates, spending is increasingly shifting towards implementation, systems integration and governance rather than simply purchasing AI models.

    Enterprise software groups benefit from growing investment

    SAP reported a 26% increase in its cloud backlog at constant currencies to €22.9 billion as customers continued migrating finance, procurement, supply chain and human resources systems onto cloud platforms that increasingly support AI applications.

    Its acquisitions of data specialist Dremio and AI company Prior Labs further demonstrate the importance of preparing enterprise data for AI-driven workflows.

    Capgemini increased its annual growth guidance after bookings rose 9.2%, while Sopra Steria upgraded its outlook following organic growth of 5.3%.

    Both companies are benefiting from demand for AI implementation services, including workflow integration, data management and governance frameworks.

    These capabilities are particularly valuable in industries such as defence, aerospace, healthcare and critical infrastructure, where AI solutions must operate within highly specialised software environments and strict regulatory controls.

    European AI infrastructure gains strategic importance

    A second development is strengthening the position of Europe’s established technology providers: customers increasingly want greater control over how AI is deployed.

    Publicis Chief Executive Arthur Sadoun has said clients increasingly want advanced AI models operating within environments where they retain control over their technology and their data.

    This preference is particularly evident in defence, aerospace and critical infrastructure, where sovereignty, cybersecurity and regulatory compliance are major priorities.

    Airbus (EU:AIR) recently selected Scaleway, owned by French telecommunications group Iliad, alongside AI technology developed with Mistral for sensitive industrial and defence workloads. Around 70 critical Airbus applications are expected to operate on Scaleway by the end of 2028.

    Meanwhile, OVHcloud reported 20.2% growth in public cloud revenue during its third quarter, suggesting rising demand for European-based AI infrastructure that is not subject to extraterritorial legislation such as the U.S. Cloud Act.

    AI’s biggest winners may extend beyond model developers

    Europe’s established technology companies must still demonstrate that AI-related demand can remain durable and that profitability can withstand increasing automation of lower-value consulting and software services.

    Even so, recent earnings suggest the benefits of artificial intelligence are spreading well beyond companies building foundation models. Increasingly, the biggest opportunities may lie with businesses that enable AI to function effectively inside large, complex organisations.

  • FTSE 100 advances as progress on Iran-US Hormuz agreement boosts sentiment

    FTSE 100 advances as progress on Iran-US Hormuz agreement boosts sentiment

    UK equities moved higher on Tuesday after reports suggested the United States, Iran and Oman were close to reaching an interim agreement that would reopen the Strait of Hormuz, easing concerns over disruption to global energy supplies and reducing fears of a broader regional conflict.

    By 03:14 ET (07:14 GMT), the FTSE 100 had climbed 0.41%. Germany’s DAX gained 0.49%, while France’s CAC 40 added 0.12%. Sterling also strengthened, rising 0.08% against the US dollar to 1.3460.

    According to Axios, citing a US official and a regional source, Iran’s leadership has completed its internal approval process, bringing Washington, Tehran and Muscat closer to announcing a 60-day interim agreement.

    US President Donald Trump told Fox News that the strait would reopen “very soon,” adding that Iran would be “hit really hard” if it failed to honour the arrangement.

    The proposed framework, according to Axios citing two regional sources and a US official, would route inbound Gulf shipping through a northern corridor in Iranian waters and outbound traffic through a southern route in Omani waters. No transit fees would apply during the temporary agreement, while naval mines in the central shipping lane would be cleared within 30 days. Qatar, Pakistan and Saudi Arabia are also involved in the mediation efforts.

    Separately, US Central Command (CENTCOM) said the southern shipping lane through the Strait of Hormuz “remains free and open” and confirmed that US forces have escorted more than 1,000 vessels through the route over the past three months despite “unwarranted Iranian aggression.”

    In commodity markets, Brent crude rose 0.77% to $79.97 a barrel, while US West Texas Intermediate crude edged 0.07% higher to $75.83. Gold also advanced, with futures climbing 1.8% to $4,226.51 an ounce and spot gold gaining 2.2% to $4,166.96.

    UK corporate highlights

    • Hiscox (LSE:HSX) increased its retail growth guidance after reporting a 10.1% rise in first-half insurance premiums.
    • Beazley (LSE:BEZ) reported that first-half profit more than halved as elevated claims and softer market conditions weighed on earnings.
    • Glencore (LSE:GLEN) posted a strong increase in first-half earnings, supported by its trading division, and confirmed plans to pursue an Australian stock market listing.
    • Next (LSE:NXT) upgraded its full-year profit forecast after stronger-than-expected sales growth during the latest quarter.