ADVFN UK Market News

Category: Top Story

  • U.S. Futures Hold Near Flatline as Markets Await Fed Decision and Tech Earnings: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. Futures Hold Near Flatline as Markets Await Fed Decision and Tech Earnings: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. equity futures traded close to unchanged on Wednesday as investors refrained from making major moves ahead of the Federal Reserve’s latest policy announcement and a series of high-profile corporate earnings releases.

    Markets broadly expect the central bank to leave interest rates unchanged, although traders continue to price in the possibility of an unexpected quarter-point increase.

    According to CME Group’s FedWatch Tool, there is a 64.2% probability that the Fed keeps rates on hold, while the likelihood of a 25-basis-point increase stands at 35.8%.

    Attention will also focus on the Fed’s policy statement, although investors expect less forward guidance under Federal Reserve Chair Kevin Warsh’s streamlined communication approach.

    Meta and Microsoft Results Could Shape Market Sentiment

    Investors are also waiting for quarterly earnings from Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT), which are scheduled for release after Wednesday’s market close.

    The reports are expected to provide fresh insight into artificial intelligence spending and could influence investor appetite for large-cap technology stocks following recent valuation concerns.

    Dow Outperforms Despite Weakness in Technology

    Wall Street ended Tuesday with mixed results after another volatile trading session.

    The Dow Jones Industrial Average gained 537.24 points, or 1.0%, to close at 52,747.32, marking its third consecutive advance.

    The S&P 500 edged 0.2% higher to 7,428.78, while the Nasdaq Composite slipped 0.2% to finish at 24,876.91.

    Earnings Drive Diverging Sector Performance

    Sherwin-Williams (NYSE:SHW) climbed 8.3% after posting stronger-than-expected quarterly earnings and raising its full-year guidance.

    Coca-Cola (NYSE:KO) also advanced 5% after delivering quarterly results that exceeded forecasts and improving its outlook for the year.

    Technology stocks remained under pressure, however, with semiconductor companies leading the declines.

    The Philadelphia Semiconductor Index dropped 4.5% for a fourth consecutive session, reaching its lowest closing level in more than two months.

    The NYSE Arca Computer Hardware Index also lost 2.5%, while oil services companies weakened as crude prices continued to fall.

    Defensive Industries Offer Support

    Healthcare stocks provided a bright spot, with the NYSE Arca Pharmaceutical Index rising 2.3% to a record closing high.

    Telecommunications, airlines and homebuilding companies also posted gains, helping to offset weakness across the broader technology sector.

  • European Stocks Trade Cautiously as Middle East Tensions Weigh on Sentiment: DAX, CAC, FTSE100

    European Stocks Trade Cautiously as Middle East Tensions Weigh on Sentiment: DAX, CAC, FTSE100

    European equities traded with little direction on Wednesday after joint military strikes by the United States and Saudi Arabia in Iraq heightened fears that conflict in the Middle East could escalate further.

    Investors also remained cautious ahead of quarterly earnings from major U.S. technology companies and the Federal Reserve’s interest rate decision, both scheduled for later in the day.

    The French CAC 40 fell 0.8%, while Germany’s DAX and the UK’s FTSE 100 each edged 0.1% higher.

    Corporate Earnings Drive Individual Stocks

    Logitech International shares dropped 7.2% after the Swiss computer peripherals manufacturer warned that a temporary shutdown at one of its suppliers’ factories could reduce third-quarter sales by as much as $200 million.

    Wealth manager UBS (NYSE:UBS) gained 3.3% after reporting better-than-expected second-quarter earnings and announcing plans to repurchase $3 billion of its own shares over the next year.

    Mining group Rio Tinto (LSE:RIO) rose 1.3% after posting a 47% increase in first-half profit.

    Commodity trader Glencore (LSE:GLEN) advanced 2.8% as first-half earnings from its trading division doubled compared with the previous year.

    Strong Results Lift Consumer and Banking Stocks

    Greggs (LSE:GRG) jumped 12% after the UK bakery chain reported a stronger-than-expected 19.7% increase in first-half 2026 pre-tax profit.

    Reckitt Benckiser (LSE:RKT), the maker of Dettol, climbed 5.3% after delivering what it described as a strong second quarter while maintaining its full-year guidance.

    Standard Chartered (LSE:STAN) added 3.7% after announcing higher quarterly earnings alongside a $1 billion share buyback programme.

    Mixed Performance Across Continental Europe

    French spirits producer Remy Cointreau (EU:RCO) declined 3.6%, despite reporting first-quarter sales that exceeded expectations and reaffirming its annual targets.

    Danone (EU:BN) fell 4.5% even after publishing solid first-half financial results.

    Belgian chemicals company Solvay (EU:SOLB) gained 3.4% after second-quarter core earnings came in ahead of market forecasts.

    Italian energy major ENI (BIT:ENI) advanced 4.2% after increasing the size of its share buyback programme following strong second-quarter results.

    Industrials Lead the Gainers

    Electrolux (LSE:0GQ1) surged 24% after the Swedish appliance manufacturer reported quarterly profit well above expectations.

    Deutsche Bank (TG:DBK) rallied 5% after delivering a record second-quarter profit.

    BASF (TG:BAS) climbed 4% after announcing plans to begin a €1 billion share buyback programme in August.

    Utility company RWE (TG:RWE) rose 2% after upgrading its earnings outlook for both 2026 and 2027.

  • Markets Hold Steady Before Fed Announcement as Microsoft and Meta Earnings Take Center Stage: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Markets Hold Steady Before Fed Announcement as Microsoft and Meta Earnings Take Center Stage: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S. stock index futures traded little changed on Wednesday as investors awaited two major market catalysts: the Federal Reserve’s latest interest rate decision and quarterly earnings from artificial intelligence leaders Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT). At the same time, renewed conflict in the Middle East drove oil prices higher, adding to investor caution.

    Futures Remain Near Unchanged

    As of 03:20 ET (07:20 GMT), futures on the Dow Jones Industrial Average and Nasdaq were broadly flat, while S&P 500 futures edged up 0.2%, or 13 points.

    Wall Street finished Tuesday with mixed performances. The Dow Jones Industrial Average gained 1.03% and the S&P 500 rose 0.21%, while the Nasdaq Composite slipped 0.22% as weakness in semiconductor stocks weighed on technology shares.

    The Philadelphia Semiconductor Index extended its decline for a fourth consecutive session, falling to its lowest level since May.

    Pressure on chipmakers intensified after reports highlighted increasing competition from Chinese semiconductor producers. Investor sentiment was also dampened after Alphabet raised its capital expenditure plans last week and SK Hynix (NASDAQ:SKHY) reported record operating profit that still fell short of lofty market expectations.

    The developments have intensified questions about whether massive artificial intelligence investments will deliver the level of earnings growth investors have priced into leading technology companies.

    John Higgins, Chief Economic Adviser at Capital Economics, said: “The share prices of some of the global tech giants at the heart of the AI revolution have come under pressure amid a variety of concerns, raising the question of whether the wheels are falling off the AI stock market train.”

    Investors Await the Federal Reserve

    Attention is now firmly focused on the Federal Reserve’s policy decision, scheduled for later today following the conclusion of its two-day meeting.

    Officials continue to weigh the impact of higher energy prices and sustained AI-related investment on inflation. While June inflation figures came in below expectations, renewed fighting in the Middle East briefly pushed oil above $100 per barrel, while technology companies continue to invest aggressively in artificial intelligence infrastructure.

    The U.S. labor market has also remained relatively stable, with hiring and layoffs showing limited movement.

    Although higher interest rates could help reduce inflation, they also risk slowing economic growth and employment.

    According to analysts at BofA Securities, today’s outcome could hinge on Federal Reserve Chair Kevin Warsh.

    They said: “Warsh faces a difficult choice. Not hiking could challenge the Fed’s credibility on inflation. But raising rates would go against his framework of looking through supply shocks.”

    CME FedWatch data indicated markets were pricing roughly a 70% probability that rates would remain unchanged between 3.50% and 3.75%, while the likelihood of a quarter-point increase remained just under one-third.

    Markets are also expecting limited forward guidance after Warsh indicated he does not intend to provide investors with a detailed roadmap for future policy decisions.

    Meta Investors Look for AI Returns

    Meta Platforms (NASDAQ:META) is scheduled to release quarterly earnings after Wednesday’s closing bell.

    The results will offer investors another opportunity to assess whether the company’s heavy artificial intelligence spending is beginning to generate stronger financial returns.

    Earlier this year, Meta increased its projected 2026 capital expenditure to between $125 billion and $145 billion, compared with previous guidance of $115 billion to $135 billion.

    The company has also warned that increased regulatory scrutiny in Europe and the United States could create a “material loss” related to “youth-related issues” and “additional trials scheduled for this year.”

    Microsoft Faces High Expectations

    Microsoft (NASDAQ:MSFT) will also report after the market closes as investors assess whether its substantial AI investments are translating into stronger growth.

    The software company plans to invest approximately $190 billion during fiscal 2026, underscoring the fierce competition among leading technology firms.

    Investors will pay particular attention to Azure cloud revenue, where analysts forecast constant-currency growth of between 39% and 40%.

    Even if Microsoft achieves those expectations, Azure would still trail the growth rate recently reported by Google’s cloud division.

    Oil Extends Rally

    Oil prices advanced after fresh military strikes involving the United States, Saudi Arabia and Iran-backed groups renewed concerns over global energy supplies.

    The escalation followed the interception of Iranian ballistic missiles aimed at U.S. forces in Jordan, ending a brief period of calmer trading in energy markets.

    Iran also rejected an Omani proposal concerning control of the Strait of Hormuz, reducing hopes for renewed diplomatic negotiations.

    By 03:17 ET (07:17 GMT), Brent crude had risen 3.5% to $87.01 per barrel, while West Texas Intermediate crude climbed 3.8% to $82.27 per barrel.

  • European Stocks Edge Higher as Strong Corporate Results Counter Fed and Geopolitical Concerns: DAX, CAC, FTSE100

    European Stocks Edge Higher as Strong Corporate Results Counter Fed and Geopolitical Concerns: DAX, CAC, FTSE100

    European equity markets traded slightly higher on Wednesday as a strong round of earnings from major banks, luxury groups and mining companies helped offset growing concerns over Middle East tensions, rising oil prices and uncertainty surrounding the U.S. Federal Reserve’s policy decision.

    The pan-European STOXX 600 index gained 0.1% in early trading.

    Among the major regional benchmarks, Germany’s DAX advanced 0.2%, France’s CAC 40 climbed 0.3%, London’s FTSE 100 added 0.4%, while Spain’s IBEX 35 traded broadly unchanged.

    Banking stocks were among the strongest performers. Standard Chartered (LSE:STAN) raised its full-year income guidance after stronger wealth management activity helped deliver better-than-expected earnings, sending its shares 3% higher. UBS (NYSE:UBS) also reported second-quarter net profit above market forecasts, while Spain’s CaixaBank (TG:48CA) exceeded quarterly earnings expectations.

    Luxury and consumer-focused companies also supported the market. Kering (EU:KER) surged 9% after Gucci posted a smaller-than-anticipated decline in quarterly sales. Eyewear group EssilorLuxottica (EU:EL) gained 2.2% after reporting first-half profit ahead of expectations, while mining company Rio Tinto (LSE:RIO) rose 2.5% after delivering its strongest first-half earnings in four years. Pharmaceutical group GSK (LSE:GSK) also advanced after improving its full-year margin outlook and announcing a $2.5 billion restructuring programme.

    Despite the positive earnings season, broader market sentiment remained cautious. Government bond yields stayed elevated as investors prepared for the Federal Reserve’s interest rate announcement later in the day.

    Although policymakers are widely expected to leave benchmark interest rates unchanged, money markets continue to assign roughly a one-in-three probability to either an unexpected rate increase or a more hawkish policy outlook, reflecting persistent inflation pressures, newly introduced trade tariffs and higher energy costs.

    Investor confidence weakened overnight after joint U.S. and Saudi military strikes targeted Iran-backed groups in Iraq following recent drone attacks on Saudi oil infrastructure.

    Responding to the accusations, Tehran said attributing the attacks to Iran was a “major miscalculation,” prompting investors to seek safer assets. Brent crude oil climbed more than 3% after Iranian ballistic missiles were intercepted in regional airspace, renewing concerns about potential supply disruptions and sustained energy inflation.

    Technology stocks also remained under pressure in Europe, mirroring sharp declines across Asian semiconductor companies after artificial intelligence memory chip producer SK Hynix (NASDAQ:SKHY) reported quarterly operating profit below expectations.

    The weaker results from the key AI supplier reignited concerns over elevated valuations across the technology sector, rising capital expenditure commitments and whether major technology companies can continue exceeding increasingly demanding earnings expectations.

    The pressure on semiconductor stocks comes ahead of closely watched quarterly earnings from Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META), both scheduled to report later in the day.

    As a result, geopolitical uncertainty and weakness across technology stocks continued to temper investor enthusiasm despite a strong flow of corporate earnings across European markets.

  • Market Open: Greggs Profit Growth, Aston Martin Margins

    Market Open: Greggs Profit Growth, Aston Martin Margins

    FTSE 100 opens steady as earnings support sentiment. Greggs and Aston Martin lead UK headlines while Brent crude rebounds and Nasdaq slips.

    Market Overview

    The FTSE 100 opened marginally higher at 10,871.16, up 0.001 per cent from the previous close. Across Europe, the Euronext 100 gained 0.04 per cent and Germany’s DAX rose 0.25 per cent. Overnight in the US, the Nasdaq closed lower at 24,876.91, while the S&P 500 finished higher at 7,428.78. Market sentiment was supported by a strong corporate earnings backdrop despite ongoing concerns over Middle East tensions, higher oil prices and expectations that interest rates could remain elevated for longer.

    Commodity markets reflected a more cautious tone, with Brent crude rebounding after supply concerns linked to geopolitical developments and OPEC+ expectations, while gold eased and copper edged higher. Natural gas was little changed. Against sterling, the US dollar and Japanese yen strengthened slightly, while the euro and Swiss franc were broadly steady and the Australian dollar weakened marginally. Bitcoin rose against the pound.

    Market Numbers

    FTSE 100: Up (0.001%), 10,871.16
    Euronext 100: Up (0.04%), 1,905.37
    DAX: Up (0.25%), 25,528.18
    NASDAQ: Down, 24,876.91
    S&P 500: Up, 7,428.78

    In the Headlines

    Interim results – Greggs (LSE:GRG)
    Greggs reported higher first-half profit and continued market share gains as its value-focused strategy attracted customers despite softer food-to-go demand. Continued investment in new stores, digital channels and supply chain capacity supports its long-term growth strategy.

    Trading update – Aston Martin Lagonda (LSE:AML)
    Aston Martin improved margins, strengthened liquidity and delivered better first-half performance as preparations for Valhalla customer deliveries gathered pace. The update signals continued progress on profitability and cash generation despite a challenging luxury automotive market.

    Currencies (vs GBP)

    USD: Down (-0.02%), $1.3287
    CHF: Down (-0.02%), Fr.1.0888
    EUR: Up (+0.02%), €1.1669
    JPY: Down (-0.04%), ¥217.725
    AUD: Up (+0.00%), $1.9051
    Bitcoin (BTC/GBP): Up, £48,420.42

    Commodities

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

  • FTSE 100 Rises as Strong Corporate Results Offset Geopolitical Tensions

    FTSE 100 Rises as Strong Corporate Results Offset Geopolitical Tensions

    UK equities moved higher on Wednesday, supported by a series of stronger-than-expected corporate earnings from several FTSE 100 constituents, while energy stocks gained as oil prices climbed following joint U.S. and Saudi military operations in Iraq.

    By 03:51 ET (07:51 GMT), the FTSE 100 had advanced 0.50%. Elsewhere in Europe, Germany’s DAX edged up 0.05% and France’s CAC 40 added 0.11%. Sterling also strengthened slightly, rising 0.08% against the U.S. dollar to 1.3304.

    Oil prices extended their gains after the U.S. Central Command (CENTCOM) and Saudi Arabian armed forces carried out coordinated strikes on militia logistics and weapons facilities in eastern Iraq on Tuesday. According to CENTCOM, the operation was launched in response to more than 30 drone attacks attributed to Iran’s Islamic Revolutionary Guard Corps (IRGC) over a 72-hour period.

    “U.S. Central Command and the Saudi Arabian Armed Forces conducted precision strikes in Iraq, July 28, against Iran-aligned terrorists,” CENTCOM said, adding that the IRGC and its affiliated groups must “halt the aggression immediately to prevent further US military action.”

    Saudi Arabia’s Ministry of Defence separately confirmed the strikes, stating they were conducted under Article 51 of the United Nations Charter.

    Earlier, Iran fired multiple ballistic missiles toward U.S. military forces stationed in the Middle East in what CENTCOM described as “an attempted surprise attack,” adding on social media platform X that “all Iranian missiles were successfully intercepted.”

    According to Axios, the intended target was a U.S. military installation in Jordan, marking Iran’s first direct strike against a U.S. base since Washington paused military action against Tehran last week to allow diplomatic negotiations.

    Regional governments reacted swiftly. Kuwait and Qatar both condemned the missile launches, with Kuwait’s Foreign Ministry describing the incident as “a flagrant violation of the sovereignty of Jordan and a threat to its security and stability.”

    The escalation followed talks between U.S. and Israeli leaders at the White House, which the U.S. press secretary described as “positive and productive.”

    In a video published on Instagram, the Israeli prime minister said the meeting was “a conversation with full partnership” focused on preventing Iran from developing nuclear weapons.

    Earlier on Tuesday, the U.S. president told Fox News that military action could resume if negotiations with Tehran failed.

    “If they don’t make a deal, then I go back, and I finish the job,” he said, adding that he could destroy most of Iran’s bridges “in less than an hour.”

    Commodity markets reflected the heightened geopolitical uncertainty. Brent crude rose 3.3% to $84.78 per barrel, while U.S. West Texas Intermediate crude gained 3.7% to $82.19. Gold futures edged up 0.11% to $4,043.20 an ounce, with spot gold adding 0.4% to $4,044.06.

    UK Market Highlights

    Rio Tinto (LSE:RIO) reported first-half earnings ahead of expectations, increased its interim dividend and highlighted growing long-term demand for metals linked to artificial intelligence infrastructure.

    Glencore (LSE:GLEN) announced a 15% increase in first-half copper production, maintained its full-year production guidance and said marketing earnings are expected to be near the upper end of its annual target range.

    Reckitt (LSE:RKT) delivered stronger-than-expected first-half profit, unveiled a £500 million share buyback programme and raised its interim dividend while reaffirming its full-year outlook.

    Standard Chartered (LSE:STAN) exceeded second-quarter earnings forecasts, upgraded its income guidance for 2026 and announced a new $1 billion share buyback programme.

  • Standard Chartered Reports Strong First-Half Earnings as Wealth Business Drives Performance

    Standard Chartered Reports Strong First-Half Earnings as Wealth Business Drives Performance

    Standard Chartered PLC (LSE:STAN) delivered better-than-expected second-quarter results, with adjusted earnings per share exceeding analyst forecasts by 17%, supported by strong growth in its Wealth Solutions division and disciplined cost management.

    For the first half of 2026, the bank reported adjusted earnings per share of 151.6 cents, representing a 17% increase from the same period last year. Second-quarter operating income rose 3% year over year to $5.7 billion, or 8% excluding the $238 million gain generated by the Solv India transaction in the prior-year period. Overall revenue also exceeded market expectations, coming in approximately 3% ahead of consensus estimates.

    Wealth Solutions continued to be a major growth engine, with second-quarter revenue climbing 43% year over year. Revenue from investment products increased an impressive 56%, while Global Banking posted an 18% rise in revenue, benefiting from strong origination activity and healthy capital markets performance. Operating expenses remained tightly controlled, broadly unchanged from a year earlier and around 2% below analyst forecasts at approximately $3.15 billion for the quarter.

    “We delivered a record first-half performance in 2026, with double-digit growth in Wealth Solutions and Global Banking,” said Bill Winters, Group Chief Executive. “We delivered a 17% increase in our earnings per share, and our upgraded income guidance and new share buyback of $1 billion reflect our confidence in the business.”

    Net interest income increased 7% year over year to $2.9 billion during the second quarter, while non-interest income rose 9%, excluding the impact of the Solv India transaction, to $2.8 billion. Net interest margin improved to 203 basis points, up five basis points from the previous year. Credit impairment charges totaled $150 million, below analyst expectations, and included $44 million of management overlays related to the conflict in the Middle East.

    Following the strong first-half performance, Standard Chartered raised its guidance for 2026 operating income growth, now expecting results to be around the midpoint of its previous 5% to 7% constant currency growth range, excluding notable items. The bank also expects net interest income to deliver low single-digit percentage growth for the full year while maintaining its expense guidance of approximately $13.3 billion at constant currency, excluding notable items.

    The group’s Common Equity Tier 1 (CET1) ratio strengthened to 14.2%, an increase of 77 basis points from the previous quarter and around 50 basis points above consensus forecasts. The improvement reflected lower risk-weighted assets totaling $261.5 billion. Standard Chartered also announced a new $1 billion share buyback programme, which is expected to reduce the CET1 ratio by approximately 38 basis points, and increased its interim ordinary dividend by 66% to 20.4 cents per share.

  • Greggs Reports Higher Profit and Market Share as Value Strategy Continues to Deliver

    Greggs Reports Higher Profit and Market Share as Value Strategy Continues to Deliver

    Greggs (LSE:GRG) reported strong interim results for the 26 weeks ended 27 June 2026, with total sales increasing 7.2% year over year to £1.10 billion and operating profit rising almost 23% to £86.5 million. The food-to-go retailer also increased its share of customer visits to 8.7%, despite an overall decline in the wider food-to-go market, demonstrating the continued appeal of its value-focused offering during a challenging period for consumer spending.

    The company’s growth was supported by higher like-for-like sales across both company-operated and franchised stores, continued estate expansion and increasing sales through grocery retail partners including Tesco and Iceland. During the first half, Greggs opened a net 34 new shops, introduced its smaller “bitesize Greggs” store format, expanded trials of “Greggs Express” self-service locations and launched its first international travel hub outlet in Tenerife. The company’s digital loyalty programme also continued to strengthen customer engagement and repeat visits.

    Greggs is continuing to invest in its long-term growth strategy through major supply chain and logistics projects, including new national distribution centres in Derby and Kettering that are designed to support an estate of up to 3,500 UK stores. At the same time, management is pursuing operational efficiencies, reducing planned capital expenditure for 2026 to approximately £180 million while maintaining a target return on capital employed of around 20%, creating the potential for additional shareholder returns over time.

    Product innovation also remains a key growth driver. During the period, Greggs expanded its menu with new offerings including the Chicken Roll, additional hot food and pizza options, refreshed salad selections and a wider drinks range featuring iced beverages and Matcha. These initiatives are intended to strengthen the brand’s position as a leading destination for convenient food-to-go while supporting like-for-like sales growth and reinforcing its reputation for affordable, high-quality products.

    Greggs’ outlook continues to be supported by a resilient operating model and an attractive valuation, although management noted softer earnings quality during 2025, including pressure on margins, earnings per share and free cash flow, alongside gradually increasing leverage. Technical indicators remain generally positive despite mixed momentum, while the company expects sales growth to continue even as supply chain investment and inflationary pressures are likely to limit profit expansion in the near term.

    About Greggs plc

    Greggs plc is one of the UK’s largest food-to-go retailers, offering a wide range of freshly prepared bakery products, hot meals, snacks and beverages through a nationwide network of company-owned and franchised stores. In addition to its traditional retail estate, the company has expanded its presence through supermarket partnerships and new store formats designed to improve convenience and accessibility.

    The business focuses on providing affordable, ready-to-eat food throughout the day, serving millions of customers with products ranging from baked goods and sandwiches to pizzas, salads and hot drinks. Continued investment in digital services, menu innovation and supply chain infrastructure supports Greggs’ strategy of expanding its market share while delivering long-term sustainable growth.

  • Glencore Increases Copper Production and Maintains 2026 Guidance as Trading Business Performs Strongly

    Glencore Increases Copper Production and Maintains 2026 Guidance as Trading Business Performs Strongly

    Glencore (LSE:GLEN) delivered a solid operational performance during the first half of 2026, with own-sourced copper production increasing 15% year over year to 397,000 tonnes. The improvement was driven by stronger mining rates and higher ore grades at its African Copper operations, together with improved grades at the Antamina mine in Peru. Production of cobalt, zinc, gold and steelmaking coal declined during the period, largely reflecting regulatory restrictions, mine closures and production curtailments, while nickel and silver output remained broadly stable. Chrome and energy coal production also recorded modest decreases.

    The company left its full-year 2026 production guidance unchanged for copper, zinc and nickel, effectively upgrading its like-for-like outlook for copper and zinc following the sale of the Kidd mine in Canada in June. Guidance for energy coal production was increased slightly, while expectations for steelmaking coal were revised modestly lower. Glencore also reported a significant reduction in copper net unit cash costs despite higher input expenses linked to supply chain disruption arising from tensions in the Middle East. Its Marketing division is expected to deliver approximately $3.3 billion in adjusted EBIT for the first half, highlighting the continued strength of its global commodity trading business despite changing pricing conditions across coal and metals markets.

    Glencore’s outlook reflects improving revenue and earnings, although profitability continues to be affected by relatively thin margins, increasing leverage and weaker free cash flow conversion. Technical indicators remain supportive, with the shares continuing to trade above key moving averages and maintaining positive momentum. While the company’s valuation remains relatively demanding and dividend yield is modest, management’s reaffirmed production guidance, continued growth in copper output and resilient Marketing performance provide a positive backdrop despite ongoing operational and cash flow risks.

    About Glencore

    Glencore is one of the world’s largest diversified natural resources companies, with operations spanning the production, processing and marketing of metals, minerals and energy products. The group produces commodities including copper, zinc, nickel and coal, while also operating one of the world’s largest commodity marketing businesses, with significant exposure to African and South American copper operations and global energy markets.

    Its portfolio combines wholly owned mining assets with joint venture operations, supplying essential raw materials for industries such as steel production, power generation and manufacturing. Through its Marketing division, Glencore captures value by trading commodities across different regions and markets, allowing the company to benefit from price, quality and logistical differences while balancing earnings between production and trading activities.

  • Rio Tinto Increases Earnings and Dividend as Productivity Improvements Drive Strong First Half

    Rio Tinto Increases Earnings and Dividend as Productivity Improvements Drive Strong First Half

    Rio Tinto (LSE:RIO) reported a strong first-half performance for 2026, with copper equivalent production increasing 3% and underlying EBITDA rising 28% to $14.8 billion. The improvement was supported by higher production across several key commodities and continued progress at major growth projects, including the Simandou iron ore development and new lithium operations. Strong operating performance also lifted free cash flow by 75% to $3.8 billion, enabling the company to increase its interim ordinary dividend by 43% to $3.4 billion. Underlying earnings also rose 43%, while return on capital employed reached 17%.

    Management said productivity initiatives continued to deliver significant benefits, with $870 million in savings already achieved and an annualised run rate of $1.8 billion targeted by the end of the year. The company is also pursuing plans to unlock between $5 billion and $10 billion through portfolio optimisation and infrastructure initiatives. During the period, Rio Tinto achieved several operational milestones, including its first shipments of high-grade iron ore from Simandou, continued development of replacement mines in the Pilbara, and initial lithium production from the Fénix 1B and Sal de Vida projects.

    The group also continued advancing its decarbonisation strategy through a range of initiatives, including trials of battery-electric haul trucks, renewable energy projects across the Pilbara and Queensland, and agreements involving biofuels and bio-pellets designed to reduce Scope 1 and Scope 2 emissions. These investments form part of Rio Tinto’s broader strategy to improve operational efficiency while lowering the environmental impact of its mining operations.

    Rio Tinto’s outlook remains supported by strong financial performance, healthy production growth and improving operational efficiency. However, management noted that margin pressure, higher debt levels and softer free cash flow conversion continue to present challenges in the current commodity cycle. Technical indicators remain constructive, reflecting positive price momentum, while the company’s valuation continues to benefit from an attractive dividend. Management also highlighted opportunities from productivity improvements and expanding copper production, although weaker iron ore markets, safety performance, debt levels and short-term production headwinds remain areas of focus.

    About Rio Tinto

    Rio Tinto is one of the world’s largest mining and metals companies, producing a diversified range of commodities including iron ore, copper, aluminium and lithium. The group operates large-scale mining assets across multiple continents and focuses on supplying the raw materials required for global infrastructure, industrial development and the energy transition.

    The company continues to invest in long-life, high-quality assets while expanding its exposure to commodities that are expected to benefit from increasing demand linked to electrification and renewable energy. Alongside disciplined capital allocation and shareholder returns, Rio Tinto is investing in productivity improvements and lower-carbon technologies to strengthen its long-term competitiveness and support more sustainable mining operations.