Blog

Oil prices extended their losing streak to a third straight session on Tuesday as expectations of a fresh output increase from OPEC+ overshadowed market enthusiasm about a potential trade breakthrough between the U.S. and China.

At 07:57 GMT, Brent Crude futures dropped $0.83, or 1.26%, to $64.79 a barrel, while U.S. West Texas Intermediate (WTI) slipped $0.75, or 1.22%, to $60.56.

“Traders weighed up progress in U.S.-China trade talks and the broader outlook for supply,” Australia and New Zealand Banking Group (ANZ) noted in a report.

The decline follows the strongest weekly performance since June for both Brent and WTI, as oil markets previously rallied on U.S. sanctions against Russia. President Donald Trump’s move to target Lukoil and Rosneft marked the first Ukraine-related sanctions of his second term. Investors are still assessing how impactful those measures will be.

Sources familiar with discussions said the OPEC+ alliance, which includes Organization of the Petroleum Exporting Countries and Russia, is leaning toward approving another modest supply increase in December. The group began rolling back years of production cuts in April, gradually restoring output.

On the demand side, sentiment remains supported by expectations that Trump and Xi Jinping could finalize a trade agreement when they meet Thursday in South Korea. Both the U.S. and China are the world’s top oil consumers, and progress in talks is seen as a key factor for demand outlook.

Beijing signaled willingness to engage, with Foreign Minister Wang Yi telling U.S. Secretary of State Marco Rubio by phone that China hopes Washington can meet it halfway to “prepare for high-level interactions” between the two nations.

In response to the U.S. sanctions, Lukoil announced on Monday that it plans to sell its international assets — the most significant corporate move by a Russian energy company since the imposition of Western sanctions over the war in Ukraine that began in February 2022.

While sanctions on major oil exporters can provide a temporary boost to prices, the effect will be contained by spare capacity, said Fatih Birol, Executive Director of the International Energy Agency, on Tuesday.

Analysts at Haitong Securities echoed that view, noting that market participants expect the sanctions to have only short-term consequences, with limited medium- to long-term supply losses. Oversupply concerns, they said, are likely to keep a lid on prices.

U.S. stock futures traded without much direction on Tuesday as a packed week of earnings reports, major central bank meetings, and high-stakes trade negotiations gained momentum. President Donald Trump is in Japan on the latest stop of his Asia tour, with hopes rising that the visit will pave the way for a trade agreement with China after his summit with Xi Jinping in South Korea on Thursday.

Meanwhile, attention turns to UnitedHealth Group Incorporated (NYSE:UNH) ahead of its quarterly earnings release, and reports indicate Amazon.com, Inc. (NASDAQ:AMZN) is preparing a sweeping round of job cuts. Gold prices continue to decline after slipping below the $4,000 level.

Futures drift lower

U.S. equity futures hovered around the flatline early Tuesday, as investors awaited both corporate earnings and developments on the U.S.–China trade front.

By 03:50 ET, Dow Jones Industrial Average and Nasdaq 100 futures were unchanged, while S&P 500 futures were down 4 points, or 0.1%.

On Monday, Wall Street’s major indexes closed at fresh record highs for a second straight session, with sentiment lifted by optimism that the upcoming Trump–Xi meeting could help cool tariff tensions. Markets also reacted positively to expectations that an agreement might avert triple-digit U.S. import tariffs and ease Chinese export restrictions on rare earths, pushing the CBOE Volatility Index (VIX) to a one-month low.

Shares of Qualcomm Incorporated (NASDAQ:QCOM) jumped 11% after the company announced plans to launch two AI chips for data centers starting next year.

Trump in Japan ahead of China summit

Before his meeting with Xi, Trump has embarked on a rapid multi-country tour across Asia. On Tuesday, he visited Japan, where he met the nation’s new Prime Minister Sanae Takaichi, a protégé of former leader Shinzo Abe.

Trump and Takaichi signed a framework agreement aimed at securing rare earth supplies, a step intended to reduce dependence on China for critical minerals used in industries like EVs and semiconductors. Neither leader explicitly mentioned China, the world’s dominant rare earth supplier.

Japan also reiterated its intention to invest $550 billion in the U.S., as part of a larger trade package announced earlier this year. According to Reuters, the agreement includes investments in shipbuilding and commitments to purchase U.S. soybeans, gas, and pickup trucks.

UnitedHealth to report

Earnings season picks up speed this week, with UnitedHealth Group Incorporated set to report before the opening bell. Analysts are closely watching newly installed CEO Stephen Hemsley’s strategy to turn the company around.

UnitedHealth, like other major healthcare players, faces rising medical costs driven by increased reimbursement rates for specialist follow-up visits. The company has also faced mounting regulatory scrutiny over its prior authorization policies, which came under the spotlight following the murder of one of its top executives last year.

Later in the day, results are expected from Visa Inc. (NYSE:V) and Booking Holdings Inc. (NASDAQ:BKNG). Later this week, earnings from Alphabet Inc. (NASDAQ:GOOG), Meta Platforms, Inc. (NASDAQ:META), and Amazon.com, Inc. will also be in focus.

Amazon plans deep job cuts

According to Reuters, Amazon is preparing to eliminate as many as 30,000 corporate jobs starting Tuesday as part of an effort to reduce costs and adjust to post-pandemic hiring levels. The cuts represent nearly 10% of its corporate workforce and would be the company’s largest layoff since 2022, when 27,000 positions were cut.

The layoffs are expected to impact divisions such as podcasting, communications, devices, and potentially Amazon Web Services. CEO Andy Jassy has previously warned that further reductions could come as AI technologies reshape operations.

Gold falls further ahead of Fed

Gold prices extended losses after Monday’s slide below $4,000 an ounce, as easing U.S.–China trade tensions reduced the metal’s appeal as a safe haven. Spot gold fell 1.6% to $3,915.67 per ounce, while U.S. gold futures declined 2.3% to $3,928.26.

The metal fell more than 3% on Monday to a two-week low and is now down about 10% from its record high of $4,381.29 reached just last week.

“Even after [Monday’s] correction, gold is still up more than 50% this year, underpinned by strong ETF demand and central bank buying amid diversification,” ING Group analysts said. “The recent price pullback could even be seen by some central banks as a chance to increase their holdings,” they added.

Markets are now focused on the Fed’s two-day policy meeting, which is expected to conclude Wednesday with a 25 basis-point rate cut. While lower rates typically support gold by reducing real yields, much of the move appears already priced in, limiting near-term upside.

European equity markets were mixed on Tuesday as investors weighed a wave of corporate earnings against the backdrop of a highly anticipated monetary policy meeting by Federal Reserve System.

At 08:05 GMT, Germany’s DAX was down 0.3%, France’s CAC 40 slipped 0.2%, while the FTSE 100 in London edged 0.2% higher.

Markets look to Fed

The main focus of the week is the Fed’s two-day policy meeting, which begins later today. The U.S. central bank is widely expected to lower interest rates by 25 basis points on Wednesday, following last week’s inflation report showing annual inflation slowing to 3% in September — below expectations.

According to the CME FedWatch tool, traders are pricing in a 96% probability of a rate cut this week. Markets are also awaiting signals from Fed Chair Jerome Powell regarding the likelihood of another policy easing in December amid signs of a cooling labor market.

Other major central banks are also in the spotlight this week, with meetings scheduled at Bank of Japan, Bank of Canada and European Central Bank.

The ECB is expected to keep its policy rates unchanged, as inflation remains near its 2% target and growth appears steady. Meanwhile, sentiment in Germany is showing signs of weakening, with the GfK consumer confidence index falling to -24.1 points for November, from -22.5 points in October.

Trade talks in focus

Global trade developments also remain a key market driver. U.S. President Donald Trump is set to meet Chinese President Xi Jinping in South Korea on Thursday, where the two are expected to finalize a trade deal. Optimism has grown after negotiators in Kuala Lumpur reached a draft agreement aimed at avoiding new tariffs.

Trump also met Japan’s new Prime Minister Sanae Takaichi in Tokyo on Monday to discuss defense cooperation, trade, and a $550 billion U.S. investment package announced earlier this year.

HSBC hit by legal charge, earnings roll in

The earnings season continued to generate headlines across Europe. HSBC Holdings plc (LSE:HSBA) reported a 14% drop in pretax profit for Q3, mainly due to a $1.1 billion legal provision. However, the bank raised its income outlook for the year, citing expectations of slower-than-expected rate cuts in key markets like Hong Kong and the U.K.

BNP Paribas (EU:BNP) reported a 6.1% rise in profit, supported by strong trading gains and the first contribution from AXA Investment Managers.

Novartis AG (BIT:1NOVN) posted higher Q3 sales and earnings, reaffirming its annual guidance as demand for key prescription drugs and late-stage pipeline progress remained robust.

Amundi S.A. (EU:AMUN) also beat profit expectations but noted that its 2028 strategy will factor in the uncertainty tied to the expiration of its distribution agreement with UniCredit S.p.A. in 2027.

Miner Anglo American plc (LSE:AAL) reaffirmed its full-year guidance despite mixed operational results — stronger manganese and diamond output offset weaker iron ore volumes.

Capgemini SE (EU:CAP) raised its 2025 growth outlook after a better-than-expected quarter, driven by solid North American demand and expansion in cloud, data and AI services.

Oil slides on OPEC+ production outlook

Crude prices fell Tuesday as investors reacted to reports of planned production hikes by OPEC+. Brent futures were down 1.3% at $64.03 a barrel, while U.S. West Texas Intermediate slid 1.5% to $60.40.

According to Bloomberg, OPEC+ is considering increasing output in December, with discussions pointing to a third monthly hike of 137,000 barrels per day. The move would aim to regain market share amid persistently weak oil prices.

C&C Group (LSE:CCR), the owner of Tennent’s and Bulmers, saw its shares edge up 1.4% on Tuesday after reporting a 4% increase in operating profit to €41.9 million for the six months ended August 31, despite a 4% decline in net revenue to €825.7 million.

The revenue dip was mainly attributed to the transfer of Budweiser Brewing Group volume in the Republic of Ireland. Profit growth, however, was driven by improved operating margins in both the Branded and Distribution divisions. The operating margin rose 0.4 percentage points to 5.1%, supported by tight cost discipline and the exit from low-margin contracts.

The company highlighted a “challenging market backdrop” for the hospitality sector in the UK and Ireland but delivered a strong performance. Underlying free cash flow more than doubled to €41.7 million, and the half-year leverage ratio was held at 1.1x.

“We have delivered a solid first-half performance against a challenging market backdrop,” said Roger White, Chief Executive Officer. “We continue to invest in initiatives to support improved business performance — building brands, delivering service, range and value to customers and consumers.”

C&C’s flagship brands proved resilient, with Tennent’s and Bulmers achieving both net revenue growth and market share gains. Tennent’s outperformed the broader lager category in the Scottish On-Trade, adding 0.6 percentage points of market share, while Bulmers strengthened its position in Ireland’s Off-Trade segment.

The company declared an interim dividend of 2.08 cents per share, a 4% increase year over year, and completed a €15 million share buyback in September as part of its €150 million capital return program.

Looking ahead, the company reaffirmed its full-year earnings guidance. “We believe we are well prepared for the all-important festive trading period, and whilst we expect challenging economic conditions to persist, we remain committed to the delivery of our full-year earnings targets,” White added.

BT Group (LSE:BT.A), the UK’s largest broadband provider, is reportedly evaluating the launch of a budget mobile brand as competitive pressures in the telecom sector intensify, according to a Financial Times report published Tuesday.

Sources familiar with the matter told the newspaper that the company is considering multiple strategic avenues for the expansion, including the creation of a new brand or the acquisition of an existing mobile virtual network operator (MVNO).

BT’s potential move into the low-cost mobile market comes as new players, including fintech firms Revolut and Monzo, expand their offerings beyond financial services into telecommunications. This trend is creating what the Financial Times described as a “rising threat” to established telecom operators.

The development underscores BT’s efforts to remain competitive in a rapidly evolving market, where pricing and bundled digital services are becoming key differentiators.

Altona Rare Earths Plc (LSE:REE) has announced major exploration progress at its Monte Muambe project in Mozambique, including the identification of three new fluorspar targets and significant gallium mineralisation at the Python target. These findings mark an important step in the company’s efforts to expand its resource base and strengthen its role in the critical raw materials sector.

In response to the discoveries, Altona is expanding its drilling program to further assess the potential of the newly identified zones. The operational update highlights the company’s strategic focus on developing high-grade fluorspar veins and evaluating the recovery of gallium as a by-product — a move that aligns with growing market demand for essential industrial commodities.

More about Altona Rare Earths Plc

Altona Rare Earths Plc is a London Main Market-listed exploration and development company focused on critical raw materials across Africa. Its diversified asset base includes the Monte Muambe Project in Mozambique, which hosts rare earths, fluorspar, and gallium mineralisation, as well as the Sesana Copper-Silver Project in Botswana. The company’s strategy emphasizes advancing projects with strong monetisation potential and long-term growth opportunities.

B.P. Marsh & Partners Plc (LSE:BPM) has completed the sale of its 28.2% shareholding in Stewart Specialty Risk Underwriting Ltd. to Ryan Specialty, LLC for CAD $51.9 million, securing a strong return on its initial investment.

The company stated that proceeds from the sale will be allocated to pursuing both new and follow-on investment opportunities, consistent with its strategy of backing early-stage financial services ventures. This divestment is part of B.P. Marsh’s broader portfolio management approach, aimed at recycling capital into high-potential growth opportunities.

B.P. Marsh continues to maintain a solid financial footing, with strong profitability and growth prospects supporting its overall outlook. The stock’s attractive valuation further strengthens its investment case. However, technical indicators remain weak, signaling limited short-term momentum despite solid fundamentals.

More about B.P. Marsh & Partners plc

B.P. Marsh & Partners Plc is a specialist venture capital investor focused on early-stage financial services businesses. Its investment portfolio spans insurance distribution, underwriting, and advisory markets in the UK and internationally. The company’s strategy centers on identifying and supporting entrepreneurial ventures with strong growth potential.

Nuformix plc (LSE:NFX) has unveiled an underwritten Open Offer to raise approximately £228,081 through the issuance of 114,040,535 Open Offer Shares at an Issue Price of 0.2p per share. CMC Markets UK Plc will underwrite the offer, ensuring full subscription.

The fundraising aims to give all qualifying shareholders an opportunity to participate while providing Nuformix with capital to advance its drug repurposing strategy. The company plans to use the proceeds to accelerate the development of new product opportunities in fibrosis and oncology—two therapeutic areas with significant unmet medical needs. These initiatives could strengthen its market position and create early-stage licensing opportunities.

Despite these strategic steps, Nuformix continues to face serious financial headwinds, including limited revenue generation and ongoing losses. While recent corporate progress and improving technical momentum are encouraging, they remain overshadowed by persistent financial instability and weak valuation metrics.

More about Nuformix plc

Nuformix plc is a pharmaceutical development company focused on drug repurposing to address unmet needs in fibrosis and oncology. By discovering and patenting new forms of existing drugs with improved physical properties, the company aims to develop differentiated, commercially attractive therapies with strong licensing potential.

RWS Holdings (LSE:RWS) reported a notable improvement in adjusted profit before tax for the second half of fiscal year 2025, reaching approximately £60 million—fully in line with company guidance. Although total reported revenue fell 4% year over year to £690 million, the company achieved growth in its Language Services division, with particularly strong momentum in its AI services business, TrainAI.

As part of its strategic initiatives, RWS refinanced and expanded its revolving credit facility to $285 million, providing greater financial flexibility. It also introduced a new organizational structure designed to streamline operations, enhance efficiency, and strengthen its growth trajectory. Recent leadership appointments support these changes and are expected to help drive execution in key areas.

The company maintains a solid balance sheet with strong equity and operational efficiency, complemented by an attractive dividend yield and reasonable P/E ratio. However, neutral technical indicators and declining revenue and cash flow highlight areas where further improvement is needed.

More about RWS Holdings

RWS Holdings is a leading global content solutions provider combining advanced technology with human expertise to enhance the value of ideas, data, and content. The company holds over 45 AI patents and operates in more than 60 locations worldwide. Listed on AIM, the London Stock Exchange’s regulated market, RWS serves a broad range of industries, helping clients accelerate innovation and expand their global reach.

IG Design Group PLC (LSE:IGR) issued a trading update for the first half of 2025, reaffirming its confidence in meeting full-year revenue guidance of $270–280 million. The company acknowledged a 13% year-over-year revenue decline, reflecting persistent market headwinds and competitive pressures, but emphasized the strength of its order book, which stands at 91% visibility.

IG Design expects adjusted operating profit margins to remain within the 3–4% range. It also highlighted improvements in cash and working capital management, finishing the period with a $2 million net cash position. Progress on the sale of its DG Americas business is ongoing, part of a broader strategic effort to refocus resources and drive sustainable growth.

Despite this operational progress, the company faces financial and technical challenges. Profitability and cash flow constraints, combined with bearish technical momentum, a negative P/E ratio, and lack of dividend yield, make its valuation outlook more complex and risk-sensitive.

More about IG Design Group PLC

IG Design Group PLC is a global designer, innovator, and manufacturer specializing in the celebration and creative product categories. The company operates in the UK, continental Europe, and Australia, with strong partnerships with major retailers and a trading presence in 70 countries. Its business model centers on design, innovation, and a diversified international market footprint.