ADVFN UK Market News

Category: Top Story

  • FTSE 100 rises as Iran negotiations ease market nerves despite renewed oil price spike

    FTSE 100 rises as Iran negotiations ease market nerves despite renewed oil price spike

    UK equities moved higher on Tuesday as optimism surrounding potential ceasefire negotiations between the United States and Iran helped improve investor sentiment, offsetting renewed strength in oil prices that pushed Brent crude back towards the $100-a-barrel mark.

    The FTSE 100 advanced 0.75%, outperforming weaker European counterparts. Germany’s DAX fell 0.28%, while France’s CAC 40 declined 0.38%. Sterling weakened 0.21% against the dollar to $1.3473 as of 07:15 GMT.

    Oil rebounds as tensions remain high around Strait of Hormuz

    Brent crude rose more than 2% after partially retreating in the previous session, following confirmation from U.S. Central Command that American forces had carried out “self-defence strikes” targeting Iranian missile launch facilities and boats operating near the Strait of Hormuz.

    Iran has effectively restricted almost all non-Iranian shipping traffic through the strategic waterway since the outbreak of hostilities, disrupting roughly one-fifth of global oil and liquefied natural gas flows.

    A report from Nikkei indicated that Iran had agreed in principle to remove naval mines from the strait within 30 days under a developing memorandum of understanding tied to ceasefire discussions.

    UK inflation pressures persist as retail prices climb

    Data from the British Retail Consortium showed UK shop price inflation accelerated to 1.2% in May from 1.0% in April, driven by supply chain disruption linked to the conflict and higher energy costs.

    Furniture as well as health and beauty products recorded some of the strongest price increases as businesses faced rising raw material and transport expenses. Food inflation, however, eased to a one-year low of 2.7%.

    The BRC urged the UK government to take further action to reduce cost pressures facing retailers and consumers.

    Diplomatic signals remain mixed

    On the diplomatic front, Donald Trump stated on Truth Social that Iran’s enriched uranium would either be transferred to the United States “to be brought home and destroyed” or eliminated locally “in conjunction and coordination” with Tehran.

    A U.S. official later confirmed that Iran had agreed in principle to those terms. However, Iranian Foreign Ministry spokesman Esmaeil Baqaei warned that “the frequent changes in the positions of American officials complicate every negotiation.”

    Meanwhile, U.S. Secretary of State Marco Rubio said any agreement could still “take a couple days,” tempering expectations of an immediate breakthrough.

    UK market round-up

    Kingfisher plc (LSE:KGF) reported a 0.7% decline in first-quarter underlying sales amid subdued home improvement demand but maintained its full-year profit guidance, citing resilient performance across core categories despite weaker seasonal trading caused by a delayed start to spring.

  • easyJet faces Italian antitrust investigation over baggage booking practices (EZJ)

    easyJet faces Italian antitrust investigation over baggage booking practices (EZJ)

    easyJet (LSE:EZJ) is under investigation by Italy’s antitrust authority over alleged unfair commercial practices connected to baggage service bookings on its digital platforms.

    The Italian regulator said the airline’s website and mobile application automatically presented bundled baggage and sports equipment check-in options for return journeys as the default selection during the booking process.

    According to the authority, customers were shown only the average total price for the service, even in situations where travellers intended to purchase baggage options for just one segment of their trip.

    Probe to assess compliance with Italian consumer rules

    The investigation will focus on whether easyJet’s booking practices comply with consumer protection regulations in Italy, particularly regarding pricing transparency and the presentation of optional services.

    Italian authorities are examining whether the platform design may have influenced customer purchasing decisions by making bundled return-trip services appear as the standard option.

    Regulatory scrutiny continues across airline sector

    The probe reflects ongoing regulatory attention across Europe on how airlines market ancillary services such as baggage, seat selection and additional travel extras through online booking systems.

    Any findings against the airline could potentially result in corrective measures or financial penalties, depending on the outcome of the investigation.

    More about easyJet

    easyJet is a UK-based low-cost airline operating short-haul passenger services across Europe and neighbouring regions. The company serves a large network of leisure and business destinations through its fleet of Airbus aircraft and generates additional revenue through ancillary services including baggage, seat selection and holiday packages.

  • KEFI strengthens Tulu Kapi financing as it prepares for London Main Market transition (KEFI)

    KEFI strengthens Tulu Kapi financing as it prepares for London Main Market transition (KEFI)

    KEFI Gold and Copper plc (LSE:KEFI) has appointed Stifel Nicolaus Europe as financial adviser and joint broker, with the firm also expected to act as sponsor for KEFI’s planned move to the Main Market of the London Stock Exchange in 2027.

    The appointment reflects the company’s ambition to expand its investor base and raise its market profile as development of the Tulu Kapi Gold Project in Ethiopia moves closer to production.

    Tulu Kapi development milestones remain on schedule

    KEFI said implementation milestones at the Tulu Kapi project are currently progressing on or ahead of schedule, with commissioning targeted from late 2027 and full-scale production expected by mid-2028.

    The company has advanced a range of critical development activities, including detailed engineering work, procurement of long-lead items such as the SAG mill, community resettlement programmes, grid power connection infrastructure and access road construction.

    Major EPCM and mining contracts have also either been finalised or significantly progressed, which management said reinforces operational readiness ahead of full construction.

    Funding structure revised to improve flexibility

    KEFI has strengthened the project’s capital structure by replacing a proposed US$15 million short-term working capital facility with an equivalent amount of long-term subsidiary-level equity-ranking capital.

    The revised package includes Ethiopian preference shares and a gold royalty arrangement involving specialist financing partners. According to the company, the new structure preserves project net present value and cash flow metrics while improving balance sheet flexibility and maintaining access to standby liquidity through the still-undrawn working capital facility.

    Drawdown of senior project debt is planned for the third quarter of 2025, with management stating that the timing is intended to reduce financing costs without affecting the construction timetable.

    The company believes the updated financing framework, alongside secured principal contracts and plans for a Main Market listing, strengthens the overall investment case for Tulu Kapi while reducing execution risk and improving institutional appeal.

    Financial profile remains the main constraint

    KEFI’s outlook continues to be constrained by weak financial fundamentals, including the absence of revenue generation, ongoing losses and continued cash burn.

    However, technical indicators remain relatively supportive, with the shares trading above key moving averages and accompanied by a positive MACD signal. Valuation metrics remain challenging due to negative earnings and the absence of a stated dividend yield.

    More about KEFI Gold and Copper plc

    KEFI Gold and Copper plc is a mineral exploration and development company focused on gold and copper assets in Ethiopia and Saudi Arabia. Listed on London’s AIM market, the company is advancing the high-grade Tulu Kapi Gold Project in Ethiopia with the aim of becoming a significant regional precious metals producer through future commercial production.

  • Wishbone Gold acquires high-grade Silver Lake project and prepares 2026 drilling campaign (WSBN)

    Wishbone Gold acquires high-grade Silver Lake project and prepares 2026 drilling campaign (WSBN)

    Wishbone Gold Plc (LSE:WSBN) has completed the acquisition of the high-grade Silver Lake silver project in Western Australia after exercising its exclusive option over the asset.

    The transaction was completed through the issue of 3,571,777 new shares, valuing the acquisition at approximately £1.04 million. The Silver Lake project covers around 422 square kilometres within the Carnarvon Basin and contains extensive shallow silver mineralisation spread across a 35-kilometre corridor.

    Management highlighted historical high-grade rock chip sampling and drilling results as encouraging indicators of the project’s exploration potential, while also noting the asset benefits from year-round accessibility and proximity to major transport infrastructure.

    Exploration activities set to begin in 2026

    Wishbone Gold has outlined an initial work programme for the newly acquired project, beginning with the appointment of Apex Geoscience to reinterpret historical geological and exploration data.

    Field crews are expected to mobilise in June, with the company targeting a drilling campaign during the third quarter of 2026 using auger or air-core drilling rigs.

    The acquisition expands Wishbone’s exposure within the precious metals sector and strengthens its pipeline of exploration assets in Western Australia, a globally recognised mining jurisdiction. Following the share issuance, the company’s total voting share capital has increased to 37,972,215 shares, resulting in modest dilution for existing shareholders.

    Financial weaknesses continue to weigh on outlook

    Wishbone Gold’s outlook remains constrained by weak financial fundamentals, including its pre-revenue status, ongoing losses and continued negative free cash flow, although management noted some operational improvement.

    Technical indicators remain mixed, with momentum readings broadly neutral and no clearly established market trend. Valuation support is also limited due to negative earnings and the absence of dividend yield data.

    More about Wishbone Gold

    Wishbone Gold Plc is a precious metals exploration company listed on both London’s AIM market and the Aquis Exchange. The business focuses on gold and silver exploration projects in Western Australia and is building a broader portfolio of assets, including the Red Setter project, to benefit from rising demand for metals linked to technology development and the global energy transition.

  • Kingfisher maintains guidance as trade and online growth help balance weaker DIY spending (KGF)

    Kingfisher maintains guidance as trade and online growth help balance weaker DIY spending (KGF)

    Kingfisher plc (LSE:KGF) reported a resilient first-quarter performance against a subdued home improvement backdrop, with underlying like-for-like sales declining 0.7%, while total sales including marketplace activity increased 0.8%.

    The group said demand in core product categories remained stable, supported by stronger performances at Screwfix and its Polish operations. Seasonal trading was affected by a delayed start to spring, while larger discretionary purchases such as bathrooms continued to face softer demand. Kitchens, however, delivered stronger results across both the UK and Polish markets.

    Trade and e-commerce operations continue to expand

    Kingfisher’s strategic growth initiatives continued to gain traction during the quarter. Trade-focused sales rose 17% excluding Screwfix and now represent 31% of total group sales, while e-commerce revenue increased 14% excluding Screwfix to account for 22% of group sales.

    Marketplace gross merchandise value climbed 39% to £163 million, and the company opened five additional stores during the period, including the first standalone TradePoint location.

    Management reiterated its guidance for the 2026/27 financial year, maintaining expectations for adjusted pre-tax profit in the range of £565 million to £625 million. The company also reaffirmed expectations for strong free cash flow generation and continuation of its ongoing £300 million share buyback programme, reflecting confidence in the long-term strategy despite cautious consumer spending conditions.

    Valuation and cash flow remain supportive despite weaker technical backdrop

    Kingfisher’s outlook continues to benefit from strong cash generation and what is viewed as an attractive valuation profile, supported by a low price-to-earnings ratio and solid dividend yield. Recent trading guidance and operational execution have also provided reassurance to investors.

    However, these positives are partly offset by profitability levels that remain below those achieved in 2022, alongside weaker technical indicators characterised by a broader downtrend and subdued market momentum.

    More about Kingfisher

    Kingfisher plc is an international home improvement retailer operating across the UK, Ireland, France, Poland and Iberia. Its portfolio includes brands such as B&Q, Screwfix, Castorama and Brico Dépôt. The group sells DIY, trade and building products while increasingly focusing on e-commerce, marketplace expansion and trade customer growth across its European operations.

  • Union Jack Oil swings to loss as strategy pivots toward U.S. growth assets (UJO)

    Union Jack Oil swings to loss as strategy pivots toward U.S. growth assets (UJO)

    Union Jack Oil (LSE:UJO) reported a net loss of £7.0 million for 2025, reversing from a profit in the previous year, after recording impairments linked to its Biscathorpe and North Kelsey licences in the UK as well as the unsuccessful Sark well in the United States. The company also saw oil and gas revenues decline to £2.5 million during the period.

    Despite the weaker financial performance, Union Jack remains debt free and has introduced a significant cost reduction programme that is expected to lower annual general and administrative expenses by approximately £500,000.

    U.S. operations become increasingly central to growth plans

    The company is continuing to accelerate its strategic expansion in the United States, particularly through its partnership with Reach Oil and Gas in Oklahoma. Union Jack said the collaboration has achieved an 80% drilling success rate, highlighted by the commercially successful Moccasin 1-13 well and positive returns from its mineral royalty portfolio.

    At the same time, the group is reducing exposure to certain non-producing UK licences amid ongoing regulatory pressures and a challenging tax environment for domestic operators. Production from the flagship Wressle field and resumed output at Keddington are expected to remain key contributors to revenue generation as the company pursues longer-term growth in both reserves and production across its UK and US assets.

    Strong balance sheet offsets weaker profitability trends

    Union Jack’s overall profile continues to benefit from a strong balance sheet with no outstanding debt and a track record of profitability since 2022. However, this has been offset by the sharp deterioration in profitability during 2024 alongside negative and volatile free cash flow performance.

    Technical indicators point to near-term share price strength, although momentum measures suggest overbought conditions and a softer longer-term trend. Valuation metrics also remain difficult to justify due to negative earnings and the absence of dividend yield data.

    More about Union Jack Oil

    Union Jack Oil is an AIM-quoted oil and gas company focused on onshore production, development, exploration and investment activities across the UK and the United States. The business is increasingly directing capital and operational focus towards opportunities in Oklahoma while maintaining a core UK production base through its flagship Wressle development and the Keddington field.

  • European Markets Trade Lower as Investors Assess Nvidia Results and Iran Negotiations: DAX, CAC, FTSE100

    European Markets Trade Lower as Investors Assess Nvidia Results and Iran Negotiations: DAX, CAC, FTSE100

    European equity markets moved lower on Thursday as investors reacted to strong earnings from NVIDIA while continuing to monitor diplomatic developments between the United States and Iran.

    Iran is currently reviewing a fresh proposal from Washington aimed at resolving the Middle East conflict, while U.S. President Donald Trump said negotiations could either produce an agreement within days or deteriorate into renewed military action.

    Germany’s DAX index fell 0.8%, France’s CAC 40 declined 0.6%, and the UK’s FTSE 100 slipped 0.4%.

    Mitchells & Butlers Slides on Softer Sales Momentum

    Shares in Mitchells & Butlers (LSE:MAB) dropped sharply after the pub and restaurant group reported slowing sales growth alongside flat underlying profit for the first half of the year.

    BT Shares Decline Following Revenue Weakness

    BT Group (LSE:BT.A) also traded lower after the telecoms group reported weaker revenue for fiscal 2026, reflecting pressure within its international operations.

    Bayer Falls Despite FDA Priority Review

    German pharmaceutical company Bayer (TG:BAYN) moved lower even after announcing that the U.S. Food and Drug Administration had granted priority review status to its supplemental New Drug Application for Kerendia.

    Cedergrenska Drops Despite Strong Quarterly Growth

    Swedish education group Cedergrenska also declined sharply despite reporting robust quarterly growth in both revenue and profit margins.

    Investec and Swiss Life Advance on Strong Results

    Meanwhile, banking and wealth management group Investec (LSE:INVP) rallied after posting a sharp increase in annual profit for its latest fiscal year.

    Swiss pensions and insurance provider Swiss Life (TG:SLW) also gained ground following strong first-quarter 2026 financial results.

  • European markets drift lower as investors assess Nvidia earnings and Iran conflict developments: DAX, CAC, FTSE100

    European markets drift lower as investors assess Nvidia earnings and Iran conflict developments: DAX, CAC, FTSE100

    European equities traded slightly lower in early dealings on Thursday as investors digested quarterly results from artificial intelligence chipmaker Nvidia (NASDAQ:NVDA) while continuing to monitor diplomatic developments surrounding the conflict between the United States and Iran.

    By 07:06 GMT, the pan-European Stoxx 600 index had declined 0.2%. Germany’s DAX also slipped 0.2%, the UK’s FTSE 100 lost 0.4%, while France’s CAC 40 traded broadly flat.

    Nvidia reported record quarterly revenue and profit, supported by continued strong demand for high-performance data centre systems and expanding adoption of AI-driven software agents.

    Revenue for the April quarter surged 85% year-on-year to US$81.6 billion, exceeding analyst forecasts, while net income climbed to US$58.3 billion — more than triple the level recorded a year earlier and comfortably ahead of Wall Street expectations.

    Chief executive Jensen Huang highlighted what he described as the arrival of the “era of agentic AI,” saying demand had turned “parabolic” as companies increasingly adopt systems capable of independently carrying out tasks on behalf of users.

    “[T]he chip landscape remains Nvidia’s world with everybody else paying rent as more sovereigns and enterprises wait in line for Nvidia’s chips,” Wedbush analysts said in a note.

    Despite the strong headline figures, Nvidia shares edged slightly lower in extended trading after analysts cited by Reuters noted that the company’s outlook excluded China sales and was only modestly ahead of expectations. Analysts also suggested that, given the exceptionally high expectations surrounding Nvidia, even stronger-than-forecast results may struggle to fully satisfy investors.

    Beyond the technology sector, markets also focused on growing hopes for a possible agreement to end the conflict between the United States and Iran, which has now lasted for more than two months.

    U.S. President Donald Trump said Washington was in the “final stages” of a possible draft peace deal, although he also warned of a potential escalation, stating that “we’re going to do some things that are a little bit nasty” if negotiations fail.

    Iran meanwhile confirmed it was reviewing the latest U.S. proposals aimed at resolving the conflict.

    Investors are paying particular attention to any progress that could reopen the Strait of Hormuz, the strategically important shipping route off Iran’s southern coast that has been largely closed to tanker traffic since the conflict began in late February. Shipping data reported earlier this week indicated that some vessels had recently resumed passing through the waterway.

    Brent crude futures were last trading modestly higher at US$106.34 a barrel after previously retreating from around US$110 following Trump’s comments regarding a potential agreement.

    Markets may receive further indications later today regarding the economic impact of the Iran conflict when preliminary business activity figures are released across Europe. European Central Bank policymakers are also expected to closely monitor the data ahead of a widely anticipated interest rate increase next month.

    Among individual stocks, Assicurazioni Generali SpA (BIT:G) rose after reporting first-quarter results that exceeded expectations while reaffirming its full-year outlook.

    Meanwhile, EasyJet (LSE:EZJ) reported a first-half loss of £552 million, with shares trading broadly unchanged in early market activity.

  • Market Open: BT Cost Cutting, EasyJet Booking Slowdown

    Market Open: BT Cost Cutting, EasyJet Booking Slowdown

    European markets rise while the FTSE slips as BT cuts costs, easyJet flags weaker bookings and Brent crude climbs above 103.

    Market Overview

    European equities moved higher in early trade, with the CAC40 rising 1.70 per cent to 8,117.420 and the DAX up 1.38 per cent to 24,737.24, while the FTSE 100 slipped 0.52 per cent to 10,384.03. US markets were mixed overnight, with the Nasdaq edging 0.29 per cent higher and the S&P 500 broadly flat. Investors continued to assess geopolitical tensions in the Middle East alongside developments in technology markets, including growing focus on OpenAI’s potential IPO prospects and SpaceX’s latest listing plans.

    Commodity markets reflected a cautious tone, with Brent crude climbing 0.80 per cent to 103.095 amid ongoing concerns around energy supply risks linked to regional conflict. Gold and copper both weakened, suggesting some easing in defensive positioning and industrial demand concerns. Sterling was broadly mixed against major currencies, gaining against the euro and Australian dollar while easing slightly against the US dollar and yen. Bitcoin strengthened modestly against sterling.

    Market Numbers

    FTSE 100: Down (-0.52%), 10,384.03
    CAC40: Up (1.70%), 8,117.420
    DAX: Up (1.38%), 24,737.24
    NASDAQ: Up (0.29%), 29,181.7
    S&P 500: Down (-0.01%), 7,412.9

    In the Headlines

    Cost Cutting Push – BT Group (LSE:BT.A)
    BT reported flat annual earnings and announced a fresh focus on cost reductions as the telecoms group looks to protect profitability amid competitive pressures and ongoing infrastructure investment. The update highlights continued pressure on UK telecom margins despite stable demand.

    Booking Weakness – easyJet (LSE:EZJ)
    easyJet said summer bookings have softened due to uncertainty linked to the conflict in the Middle East, raising concerns over travel demand during the peak holiday season. The warning adds to wider investor caution around the airline and leisure sector.

    Currencies (vs GBP)

    USD: Down (-0.11%), $1.3420
    CHF: Down (-0.02%), Fr.1.05739
    EUR: Up (0.07%), €1.1564
    JPY: Down (-0.05%), ¥213.418
    AUD: Up (0.49%), $1.886760
    Bitcoin (BTC/GBP): Up (0.24%), £57,825.3

    Commodities

    Copper: Down (-1.30%), 6.2702
    Gold: Down (-0.62%), 4,517.72
    Brent Crude: Up (0.80%), 103.095
    Natural Gas: Up (0.22%), 3.1805

  • FTSE 100 slips as Iran tensions and cautious sentiment weigh on markets

    FTSE 100 slips as Iran tensions and cautious sentiment weigh on markets

    UK equities traded lower on Thursday as uncertainty surrounding U.S.-Iran negotiations and a subdued response to Nvidia’s latest earnings kept investors cautious, despite oil prices recovering part of the sharp losses seen in the previous session.

    The FTSE 100 fell 0.40%, while Germany’s DAX declined 0.31% and France’s CAC 40 lost 0.23%. Sterling also eased 0.12% against the dollar to 1.3419 by 07:20 GMT.

    Oil prices rebounded after Wednesday’s near-5% selloff as Donald Trump warned the United States remained prepared to strike Iran if negotiations failed, saying the situation was “right on the borderline” while indicating there was still room to wait “a few days” before taking further action.

    Brent crude settled at US$105.02 a barrel on Wednesday after Trump previously stated Washington was in the “final stages” of reaching a deal with Tehran before later hardening his stance overnight.

    Iran responded by warning it was prepared for escalation, with parliament speaker Mohammad Bagher Qalibaf stating the country must strengthen its “readiness for a decisive and effective response,” describing the confrontation as “a war of wills.”

    Iranian state media nevertheless confirmed officials were still reviewing the latest U.S. proposal. Pakistan’s army chief Asim Munir travelled to Tehran on Thursday to continue mediation efforts, while Iran’s foreign ministry repeated demands for the release of frozen assets and the lifting of the port blockade.

    The Strait of Hormuz remained largely closed, with Iran’s newly established Persian Gulf Strait Authority publishing a map outlining a claimed controlled maritime zone that would require vessels to seek permission before transit.

    U.S. Central Command said 91 ships had been rerouted because of the blockade and confirmed it had boarded and searched an Iranian-flagged tanker before later releasing it.

    The UN Food and Agriculture Organization warned the disruption risks creating “a severe global food price crisis,” noting that before the conflict the Strait of Hormuz handled around one-fifth of global oil shipments and roughly one-third of global fertiliser supply.

    Trump also said Israeli Prime Minister Benjamin Netanyahu would do “whatever I want him to do” regarding Iran and added he was “in no hurry” to finalise a deal. Israel’s military chief meanwhile said the IDF remained at its “highest level of alert.”

    UK market round-up

    Smiths Group Plc (LSE:SMIN) cut its FY2026 revenue guidance after the Middle East conflict reduced sales at its John Crane division by around £10 million during the third quarter.

    Close Brothers Group (LSE:CBG) increased its motor finance provision by £30 million in the third quarter but said it remains on track to meet full-year expectations.

    Tate & Lyle (LSE:TATE) described recent financial performance as “disappointing” and forecast only modest revenue growth for 2027 following a recent takeover approach from Ingredion.

    Ibstock Plc (LSE:IBST) said full-year earnings should broadly meet expectations but warned that cost inflation pressures are expected to continue into the second half.

    AJ Bell plc (LSE:AJB) said full-year profit is running ahead of guidance and announced a new share buyback programme after posting record net inflows and 12% first-half revenue growth.