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  • European Markets Weaken as U.S.-Iran Peace Efforts Stall: DAX, CAC, FTSE100

    European Markets Weaken as U.S.-Iran Peace Efforts Stall: DAX, CAC, FTSE100

    European equities traded mostly lower on Monday as investors reacted to another setback in diplomatic efforts aimed at ending the prolonged conflict between the United States and Iran.

    Tensions escalated after U.S. President Donald Trump rejected Iran’s latest proposal to resolve the conflict, which has now lasted for more than two months. In response, Tehran signalled it would continue to rely on both diplomacy and military measures when necessary to defend its national interests.

    Iranian Foreign Ministry spokesperson Esmaeil Baqaei said the United States had breached trust in every diplomatic initiative it had participated in during the past two decades.

    Major European Indexes Move Lower

    By midday trading, the U.K.’s FTSE 100 Index remained broadly flat, while Germany’s DAX Index declined 0.5% and France’s CAC 40 Index fell 1.1%.

    Investors continued to monitor geopolitical developments alongside a series of corporate earnings updates and company-specific announcements across Europe.

    Safestay Shares Sink Following Management Change

    Shares in hostel operator Safestay (LSE:SSTY) dropped sharply after the company announced that Peter Zielke would step down from his executive responsibilities as Chief Operating Officer effective June 10.

    The company confirmed that Davide Caschili will assume the COO role from the same date.

    Adesso and Hannover Re Decline After Earnings Updates

    German IT services company Adesso (TG:ADN1) also moved lower despite reporting first-quarter profits that exceeded analyst expectations.

    Meanwhile, reinsurer Hannover Re (TG:HNR1) declined after posting first-quarter earnings that came in below market forecasts.

    Stabilus, Compass Group and Aurubis Advance

    On the positive side, German automotive supplier Stabilus (TG:STM) gained ground after reaffirming its full-year financial guidance.

    Compass Group (LSE:CPG) shares also advanced after the catering giant upgraded its 2026 profit outlook following a 12% increase in underlying operating profit for the six months ended March 2026.

    Copper producer Aurubis (TG:NGA) surged after reporting stronger second-quarter performance and raising its outlook for the 2025-26 financial year.

  • Rolls-Royce (RR.) Prepares First Euro Bond Offering Since 2020

    Rolls-Royce (RR.) Prepares First Euro Bond Offering Since 2020

    Rolls-Royce Holdings (LSE:RR.) is planning its first euro-denominated bond issuance in six years as the aerospace and defence group looks to strengthen financial flexibility amid disruption linked to the conflict in the Middle East, according to a Bloomberg report published Monday.

    The company has reportedly mandated banks to organise a dual-tranche debt offering consisting of five-year and 10-year maturities, according to a source familiar with the matter cited by Bloomberg. Investor meetings are expected to take place on Monday, with proceeds from the sale intended for general corporate purposes.

    Company Seeks to Offset Impact of Middle East Disruptions

    In a trading update released last month, Rolls-Royce said it expected to fully mitigate the current financial impact caused by operational disruption related to the regional conflict.

    Management stated that the company was implementing measures designed to protect operations while maintaining its full-year 2026 guidance. Rolls-Royce continues to forecast underlying operating profit between £4 billion ($5.4 billion) and £4.2 billion, alongside free cash flow of between £3.6 billion and £3.8 billion.

    The planned debt sale comes as companies across the aerospace and industrial sectors continue to monitor supply chain pressures, transport disruption and broader geopolitical uncertainty stemming from tensions in the Middle East.

    Major Banks Lined Up for Bond Transaction

    According to the Bloomberg report, BNP Paribas, Credit Agricole CIB, Goldman Sachs International, Lloyds Banking Group, Banco Santander and Societe Generale have been appointed to manage the transaction.

    The issuance would mark Rolls-Royce’s first euro bond offering since 2020 and reflects ongoing efforts by large industrial groups to secure funding flexibility amid volatile global market conditions.

  • European Stocks Mixed as Trump Rejects Iran’s Peace Proposal Response: DAX, CAC, FTSE100

    European Stocks Mixed as Trump Rejects Iran’s Peace Proposal Response: DAX, CAC, FTSE100

    European equity markets traded without clear direction on Monday as investors weighed renewed geopolitical tensions after U.S. President Donald Trump described Iran’s reply to a U.S.-backed peace proposal as “TOTALLY UNACCEPTABLE.”

    By 07:04 GMT, the pan-European Stoxx 600 index was broadly flat. Germany’s DAX edged 0.1% higher, while London’s FTSE 100 advanced 0.4%. France’s CAC 40 underperformed, slipping 0.5%.

    Iranian state television reported that Tehran had formally responded to a U.S. framework aimed at ending the conflict that has now lasted for more than two months. According to the reports, Iran’s proposal focused on bringing military operations to an end across all fronts while also seeking compensation for wartime damage.

    Tehran also reiterated its control over the Strait of Hormuz, the strategically important shipping corridor through which around 20% of global oil supply passes. The waterway has faced severe disruption during the conflict and is currently subject to blockades from both Iranian and U.S. forces.

    Shortly after details of Iran’s response emerged, Trump reacted on social media, saying he did not “like” the proposal. Washington has been pushing for a rapid conclusion to the conflict before entering broader negotiations on key issues, particularly Iran’s nuclear programme.

    Oil markets continued to react sharply to the escalating tensions. Brent crude futures, the international benchmark, climbed another 3.4% to $104.69 per barrel, extending gains well beyond pre-conflict levels and fuelling concerns over renewed inflationary pressure globally.

    Away from geopolitical developments, investors also remained focused on the ongoing rally in artificial intelligence-linked stocks. Continued enthusiasm surrounding the AI sector has helped U.S. equity markets absorb much of the uncertainty tied to the conflict and reach fresh record highs in recent trading sessions.

    Among individual movers, shares in Delivery Hero (TG:DHER) rose more than 5% after Prosus sold a 5% stake in the company to Hong Kong-based investor Aspex in a deal valued at 335 million euros.

  • FTSE 100 Today: Energy Stocks Support Markets as US-Iran Talks Stall

    FTSE 100 Today: Energy Stocks Support Markets as US-Iran Talks Stall

    British equities traded slightly higher on Monday after weekend ceasefire discussions between the United States and Iran failed to produce a breakthrough, with gains in energy shares helping offset broader geopolitical concerns. Investor sentiment remained cautious after U.S. President Donald Trump rejected Tehran’s latest peace proposal as “totally unacceptable.”

    By 07:30 GMT, London’s benchmark FTSE 100 index was up 0.20%, while France’s CAC 40 declined 0.64% and Germany’s DAX slipped 0.04%.

    Sterling weakened against the dollar, with GBP/USD falling 0.24% to 1.3601 as investors moved toward safe-haven assets. Brent crude oil climbed above $104 per barrel overnight amid renewed fears surrounding Middle East supply disruptions.

    Iran’s latest response, reportedly delivered through Pakistani intermediaries, called for war reparations, recognition of Iranian sovereignty over the Strait of Hormuz, and full sanctions relief within 30 days. Iranian state media quoted an official as saying no one in Tehran drafts proposals designed to satisfy Trump, adding that his dissatisfaction was viewed positively by Iran.

    The Strait of Hormuz remains at the centre of the dispute. Iranian lawmakers and state media maintained that the strategic shipping route would not return to its previous operating conditions following the conflict, a stance firmly opposed by Washington.

    U.S. Energy Secretary Chris Wright reiterated on Sunday that unrestricted passage through the Strait of Hormuz remained non-negotiable for the United States. Trump also suggested the possibility of additional military action, stating that the U.S. had completed around 70% of its intended targets and “could go in for two more weeks.”

    On the domestic front, Prime Minister Keir Starmer is expected to deliver a major speech later today outlining closer ties with the European Union as a central objective of his government. Markets will be watching for any signals regarding trade normalisation, which could provide support for UK mid-cap stocks during the session.

    UK Round-Up

    Palantir (NASDAQ:PLTR) and other contractors have reportedly been granted extensive access to identifiable patient data through administrative privileges on NHS England’s primary data platform, according to the Financial Times. Internal briefing documents acknowledged “considerable public interest and concern” regarding Palantir’s involvement with NHS systems and recommended imposing limits and expiry periods on external access, although the permissions had already been approved.

    Compass Group (LSE:CPG) upgraded its forecast for full-year underlying operating profit growth to above 11%, compared with previous guidance of around 10%, after strong new contract wins drove robust first-half trading. The catering giant said continued demand for workplace dining services is expected to outweigh any impact from companies reducing office space as artificial intelligence reshapes white-collar employment patterns.

    Heathrow Airport reported a 5% decline in passenger traffic during April to 6.7 million travellers, as conflict involving Iran significantly reduced Middle East traffic by more than 50%. However, transfer passenger volumes increased 10% as more travellers rerouted through London. Chief executive Thomas Woldbye described the disruption as “short-term” ahead of an updated 2026 passenger forecast due in June.

  • Empire Metals (EEE) Raises £8 Million to Advance Pitfield Titanium Project and ASX Listing Plans

    Empire Metals (EEE) Raises £8 Million to Advance Pitfield Titanium Project and ASX Listing Plans

    Empire Metals (LSE:EEE) has secured £8 million through a share subscription involving existing institutional investors, increasing the company’s pro-forma cash position to approximately £14.5 million. The fundraising comes as Empire continues development work at its Pitfield titanium project in Western Australia and moves ahead with plans for a dual listing on the Australian Securities Exchange in the second half of 2026.

    The new capital will be used to accelerate engineering and economic studies at Pitfield, alongside additional drilling aimed at expanding and upgrading the project’s Mineral Resource Estimate. Empire also intends to advance pilot-scale production activities, metallurgical testing, and product development programmes as it targets potential supply opportunities in the TiO₂ pigment and titanium sponge metal markets.

    In addition, the funds will support ongoing offtake discussions, cover costs associated with the proposed ASX listing, and provide general working capital as the company continues to progress the project toward commercialisation.

    Empire Metals’ outlook remains constrained by its lack of revenue generation, recurring losses, and continued cash burn, all of which contribute to ongoing funding dependence. Technical indicators also remain weak, with the shares trading below major moving averages and reflecting negative momentum. While the company maintains a relatively low-debt balance sheet, this has yet to translate into sustainable profitability.

    More About Empire Metals

    Empire Metals is an exploration and resource development company focused on advancing the Pitfield Titanium Project in Western Australia. The project hosts what the company describes as one of the world’s largest and highest-grade titanium deposits, with mineralisation beginning at surface and showing strong grade continuity. Conventional processing testwork has already produced high-purity TiO₂ suitable for both pigment and titanium metal applications.

  • ASOS (ASC) Agrees £67.5 Million Sale of Lichfield Fulfilment Centre to M&S

    ASOS (ASC) Agrees £67.5 Million Sale of Lichfield Fulfilment Centre to M&S

    ASOS (LSE:ASC) has agreed to sell its Lichfield fulfilment centre, along with the related automation equipment, to Marks and Spencer for £67.5 million. The company expects to realise net proceeds of at least £66 million from the transaction following a competitive sale process.

    Management said the disposal reflects the group’s reduced long-term capacity requirements following the introduction of a more flexible fulfilment model and the rollout of ASOS Fulfilment Services. ASOS believes its remaining distribution facilities in Barnsley and Berlin are sufficient to support future operational growth and customer demand.

    The transaction, which qualifies as significant under UK listing regulations, is expected to generate a one-off pre-tax profit of approximately £85 million. ASOS also anticipates annual cash savings of around £6 million through lower rent and occupancy expenses.

    The company plans to use the proceeds to strengthen its cash position, preserve financial flexibility, and support its ongoing balance sheet restructuring efforts. The sale follows ASOS’s refinancing activities completed in 2025 and the recent repayment of convertible bonds, with management continuing to emphasise disciplined capital allocation.

    ASOS’s broader outlook remains constrained by weak financial fundamentals, including declining revenue, continuing losses, and elevated leverage levels. However, recent earnings guidance has provided some improvement in sentiment through expectations for stronger margins and EBITDA performance, alongside reductions in debt and inventory and the benefits of refinancing measures. Technical indicators remain mixed, while valuation metrics continue to lack support due to the company’s negative price-to-earnings ratio and absence of a dividend.

    More About ASOS plc

    ASOS plc is a global online fashion retailer founded in 2000, serving approximately 17 million active customers across more than 100 markets worldwide. The company offers a combination of owned brands, including ASOS DESIGN, ARRANGE, COLLUSION, Topshop, and Topman, together with products from a wide range of third-party fashion labels. Its operations are supported by an agile fulfilment network that incorporates ASOS Fulfilment Services and partner-led logistics solutions.

  • Games Workshop (GAW) Appoints New Chief Operating Officer in Leadership Restructure

    Games Workshop (GAW) Appoints New Chief Operating Officer in Leadership Restructure

    Games Workshop (LSE:GAW) has promoted Group Operations Director Neil Tomlinson to the newly created role of Chief Operating Officer, broadening his responsibilities to include oversight of the company’s design studios and the full Design to Manufacture division. The restructuring is intended to bring design and production functions under unified leadership, a move expected to improve operational coordination and strengthen control across the company’s creative and manufacturing activities.

    Under the updated management structure, Operational IP and Design Director Max Bottrill will report directly to Tomlinson and will step down from his position as a PLC board director. The changes, which take effect from 31 May 2026, will slightly reshape the company’s board composition while centralising operational leadership. Management’s decision signals a greater emphasis on integrated oversight of intellectual property, product design, and manufacturing processes across the business.

    Games Workshop’s outlook continues to be supported by strong financial performance and favourable corporate developments. Technical indicators point to robust momentum in the shares, although some measures suggest the stock may be approaching overbought territory in the near term. Valuation remains relatively elevated, slightly tempering the otherwise positive investment case.

    More About Games Workshop

    Games Workshop Group PLC is a UK-based tabletop gaming and miniature wargaming company best known for creating, manufacturing, and distributing miniature figures and related hobby products. The business is built around its proprietary fantasy and science fiction intellectual property franchises, which underpin a global customer base and retail network.

  • European equities retreat as geopolitical tensions weigh on sentiment: DAX, CAC, FTSE100

    European equities retreat as geopolitical tensions weigh on sentiment: DAX, CAC, FTSE100

    European stock markets traded lower on Friday as rising tensions between the United States and Iran prompted investors to scale back exposure to higher-risk assets.

    Market participants were also monitoring political developments in the United Kingdom after early nationwide election results pointed to significant losses for Prime Minister Keir Starmer’s Labour Party, while Nigel Farage’s Reform U.K. party appeared to make substantial gains.

    On the economic front, Germany’s industrial production fell 0.7 per cent in March, according to figures released by Destatis, marking a second consecutive monthly contraction. Economists had expected a 0.4 per cent increase following February’s 0.5 per cent decline.

    Compared with the same period last year, German industrial output was down 2.8 per cent after a 0.2 per cent annual decline in the previous reading.

    In the United Kingdom, Halifax data showed house prices slipped for a second month in April amid uncertainty linked to the ongoing conflict in the Middle East. Property prices declined 0.1 per cent month-on-month, following a 0.5 per cent fall in March, while analysts had anticipated no monthly change.

    The FTSE 100 was lower by 0.1 per cent, while France’s CAC 40 declined 0.8 per cent and Germany’s DAX dropped 0.9 per cent.

    Among individual stocks, Commerzbank (TG:CBK) fell after unveiling large-scale job cuts tied to an artificial intelligence restructuring programme.

    Swiss contract drug manufacturer Lonza (BIT:1LONN) also traded lower despite reporting solid first-quarter results and reaffirming its outlook for 2026.

    British Airways parent company IAG (LSE:IAG) came under pressure after warning that annual profit would be weaker than previously expected.

    In contrast, German chemicals group Evonik (TG:EVK) advanced after reporting first-quarter adjusted earnings above market expectations.

  • FTSE 100 Falls as U.S.-Iran Strait Tensions Shake Investor Confidence

    FTSE 100 Falls as U.S.-Iran Strait Tensions Shake Investor Confidence

    British equities moved lower on Friday after intensifying military confrontations between U.S. and Iranian forces in the Strait of Hormuz unsettled global markets, despite U.S. President Donald Trump maintaining that a ceasefire remained active and urging Tehran to agree to a peace settlement “fast.”

    By 07:20 GMT, London’s benchmark FTSE 100 index had fallen 0.81%, while sterling remained broadly stable, with GBP/USD rising 0.13% to 1.3584. Elsewhere in Europe, Germany’s DAX slipped 1%, while France’s CAC 40 declined 0.8%.

    According to Washington, three U.S. destroyers passed through the Strait of Hormuz while facing attacks involving Iranian fast boats, missiles and drones, although no damage was reported.

    “They trifled with us. We blew them away,” Trump said, while also claiming negotiations with Tehran were “going very well” and warning that any future military response would be “a lot harder, and a lot more violently” if Iran failed to reach an agreement quickly.

    Intertek Rejects Improved EQT Takeover Proposal

    Intertek (LSE:ITRK) rejected an increased £8.93 billion takeover proposal from Swedish private equity group EQT on Friday, arguing that the bid materially undervalued the testing and inspection company and carried excessive execution risk.

    The rejection signals that Intertek’s board remains confident in the company’s standalone growth strategy despite the substantial premium offered by the bidder.

    IAG Cuts Profit Expectations as Fuel Costs Rise

    IAG (LSE:IAG), owner of British Airways, warned that full-year profits are now expected to come in below previous forecasts as rising jet fuel costs linked to the Iran conflict and broader supply disruptions place greater pressure on earnings than initially anticipated.

    The downgrade highlights the growing financial impact of Middle East tensions on European airline operators.

    UK House Prices Show Further Weakness

    UK house prices slipped 0.1% in April, according to mortgage lender Halifax, leaving annual growth at 0.4%, below economists’ expectations of 0.6%.

    The weaker reading suggests affordability challenges continue to weigh on the housing market as higher borrowing costs and geopolitical uncertainty dampen buyer demand.

    Labour Suffers Heavy Losses in Local Elections

    The UK Labour Party endured significant setbacks in Friday’s English local elections, with Prime Minister Keir Starmer’s party losing support across several traditional strongholds in central and northern England less than two years after its general election victory.

    Nigel Farage’s Reform UK emerged as the main beneficiary, winning more than 300 council seats and strengthening its position as a growing opposition force in both Scotland and Wales.

  • Barclays (BARC) Says Q1 Earnings Growth Has Reached Multi-Year Highs in Europe and the U.S.

    Barclays (BARC) Says Q1 Earnings Growth Has Reached Multi-Year Highs in Europe and the U.S.

    Barclays (LSE:BARC) said first-quarter earnings-per-share growth is currently running at its strongest pace in more than three years across Europe and more than four years in the United States, based on the bank’s assessment of the ongoing earnings season.

    According to Barclays’ analysis, blended EPS growth stands at 27% in the U.S. and 7% in Europe, which would represent the strongest quarterly performance since the fourth quarter of 2021 in the U.S. and the first quarter of 2023 in Europe. Among companies that have already released results, EPS growth is tracking at 16% in the U.S. and 4% in Europe.

    European Companies Beat Expectations but Outlook Turns More Cautious

    Barclays noted that European businesses have generally delivered earnings results in line with market expectations. However, corporate guidance has become more cautious due to the impact of ongoing geopolitical conflict.

    The bank’s review of European earnings call transcripts found that roughly 75% of reporting companies have been affected by the conflict through weaker demand conditions, supply chain disruption or increased input costs.

    AI and Technology Drive Stronger U.S. Earnings Revisions

    The bank also said full-year 2026 EPS revisions in the U.S. have moved back into positive territory, led primarily by artificial intelligence and technology-related sectors. This has widened the performance gap between U.S. and European earnings expectations.

    Energy and semiconductor companies have received some of the largest upgrades in both markets, contributing to higher forecasts for FY2026 earnings growth overall.

    Financials and Consumer Sectors Show Mixed Performance

    Within Europe, sectors including Financials, Materials and Consumer Discretionary recorded some of the strongest earnings beats. In the U.S., Technology and Consumer Staples companies were among the leading performers during the reporting season.

    Most other sectors, however, experienced modest earnings downgrades. Barclays said the majority of downward revisions were concentrated in consumer-focused industries such as luxury goods, automotive and leisure.

    Global Earnings Revisions Begin to Stabilize

    Barclays added that global EPS revisions have started to stabilize as recent economic indicators and activity data, including purchasing managers’ indexes, have shown some improvement.

    Nevertheless, the stronger economic momentum remains largely concentrated in the United States, while earnings revisions across Europe continue to trend slightly negative.