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European equities edged lower Wednesday, following overnight declines on Wall Street amid rising concerns over valuations and uncertainty about the future trajectory of U.S. interest rates.

At 07:05 GMT, Germany’s DAX fell 0.2%, France’s CAC 40 slipped 0.1%, and the U.K.’s FTSE 100 eased 0.1%.

Wall Street Losses Weigh on Sentiment

Investor sentiment was dampened overnight after U.S. Federal Reserve Chair Jerome Powell warned of mounting economic risks and uncertainty around interest rates. Speaking at Rhode Island’s Greater Providence Chamber of Commerce on Tuesday, Powell described the Fed’s position as “challenging,” citing the simultaneous risks of faster-than-expected inflation and weak job growth raising questions about labor market health.

Earlier this month, the Fed cut rates for the first time this year, but Powell gave little guidance on the timing of any further monetary easing. He also noted that “equity prices are fairly highly valued,” as U.S. benchmark indices recently reached all-time highs.

With the S&P 500 up more than 13% year-to-date and Germany’s DAX over 18% higher, analysts warn of the potential for a sharp pullback.

Focus on German Ifo Business Climate

In Europe, eurozone flash PMIs released Tuesday showed business activity growing at the fastest pace in 16 months for September. However, the data also highlighted a divergence between the bloc’s largest economies: Germany saw acceleration, while France was held back by political uncertainty.

Later Wednesday, the German Ifo business climate index is expected to confirm an improvement in sentiment.

Corporate Highlights

JD Sports Fashion (LSE:JD.) reported a 13.5% fall in first-half profit, largely due to weak U.S. operations. The U.K.-based retailer maintained its full-year guidance but flagged caution over the trading environment.

Ferrari (BIT:RACE) posted a first-half EBITDA margin of 26.6%, up 20 basis points from a year earlier, as productivity gains offset higher staff and digital investment costs.

Oil Prices Gain on Inventory Decline

Crude futures rose Wednesday as a drop in U.S. inventories eased concerns about softening demand. At 03:05 ET, Brent crude advanced 0.1% to $67.72 a barrel, while West Texas Intermediate climbed 0.1% to $63.48 a barrel.

Both benchmarks gained over $1 on Tuesday after a delay in resuming exports from Iraq’s Kurdistan reduced worries about additional supply entering global markets. Data from the American Petroleum Institute showed U.S. crude stocks fell by 3.82 million barrels, while gasoline inventories dropped by 1.05 million barrels in the week ending September 19. Official U.S. government energy data is expected later Wednesday.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Shares in European defense companies rose Wednesday after U.S. President Donald Trump signaled stronger support for Ukraine’s efforts to reclaim lost territories.

Trump expressed optimism that Ukraine could recover all regions taken by Russia, including Crimea as well as parts of Donetsk and Luhansk, with backing from NATO and the European Union. This represents a notable shift from his previous, more cautious statements regarding territorial issues.

At 08:20 GMT, shares of Saab (BIT:1SAAB), Hensoldt (BIT1HENS), Renk Group (TG:R3NK), Leonardo (BIT:LDO), Thales (EU:HO), Rheinmetall (TG:RHM), Dassault Aviation (EU:AM), QinetiQ (LSE:QQ.), and BAE Systems (LSE:BA.) were up between 1.6% and 4.7%.

The European aerospace and defense index increased 0.8%, contrasting with a 0.45% decline in the broader STOXX 600 index.

Trump also criticized Russia’s military capabilities, calling them a “paper tiger,” and highlighted NATO’s critical role in deterring further aggression. European leaders, including French President Emmanuel Macron, welcomed the comments as an opportunity to increase pressure on Russia amid ongoing economic and military challenges.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Ferrari NV (BIT:RACE) reported a first-half 2025 EBITDA margin of 26.6%, up 20 basis points from the same period last year, with productivity gains helping to offset higher costs from staff and digital investments.

Adjusted EBITDA increased 4.4% to €47.7 million, in line with Jefferies’ expectations. Revenue rose 3.8% to €179.6 million, slightly above the €179.2 million forecast, driven by 4% organic growth. Growth was supported by Europe and other regions, while Asia faced headwinds from weakness in China, despite stronger performance in Korea, Japan, and Thailand.

Management confirmed full-year 2025 guidance, targeting revenue growth of 4.7%—matching 2024 levels—and maintaining an EBITDA margin of 26.5% or higher. The company anticipates faster growth in the second half, bolstered by planned new openings in Southeast Asia.

Ferrari Group, which listed on Euronext Amsterdam in February, is trading approximately 6% below its listing price, according to Jefferies. The brokerage set a price target of €10.5, reflecting a 20% discount to its €13.0 fair value estimate, and valuing the company at 8.2 times forecast 2025 EV/EBITDA, compared with 9.5 times for peers.

In 2024, Ferrari Group posted revenue of €348.8 million and adjusted EBITDA of €92.4 million, achieving a margin of 26.5%. Total shipments exceeded €190 billion, with Europe accounting for 58% of revenue, Asia 17%, North America and Brazil 14%, and other regions 11%.

Jefferies highlighted potential risks, including a weaker luxury market, customer concentration, cost inflation, concentrated end-market exposure, and possible pricing pressure from major clients.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Atos (EU:ATO), a global leader in AI-driven technology, has been awarded a significant cybersecurity contract by the European Commission, valued at up to €326 million, the company announced Wednesday.

The contract falls under Lot 1 (Technical Operations Services) of the European Commission’s CLOUD II Dynamic Purchasing System Mini-Competition 17 for Cybersecurity, making it one of the largest cybersecurity service agreements in Europe.

As the first provider in the “cascade” mechanism, Atos will have priority in delivering critical cybersecurity services to EU institutions, agencies, and bodies. Managed by the Directorate-General for Digital Services, the contract emphasizes operational support, advisory guidance, and cybersecurity capability development.

“This award is a strong recognition of Atos’ trusted partnership with the European Commission and our long-standing track record of delivering secure, resilient digital services across Europe,” said Punit Sehgal, Head of Atos Belux, Netherlands & Nordics.

The framework agreement may last up to 48 months and includes technical operations services such as incident response, digital forensics, threat intelligence, monitoring, malware analysis, and offensive security measures like vulnerability management and penetration testing.

Atos will act as the lead contractor alongside Leonardo as a consortium partner, combining Atos’ cybersecurity expertise with Leonardo’s capabilities to ensure operational excellence and high resilience standards.

David Dewulf, Cybersecurity Director at Atos Belux, Netherlands & Nordics, highlighted that the contract extends cybersecurity services Atos has been delivering to European Institutions for many years.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

JD Sports Fashion PLC (LSE:JD.) reported a 13.5% decline in first-half profit, as weaker performance in its U.S. operations weighed on results. The retailer confirmed its full-year outlook but noted continued caution regarding the trading environment.

For the 12 months, JD Sports expects profit before tax and adjusting items to be in line with market expectations, ranging from £853 million to £914 million ($1.15–$1.23 billion), with the consensus at £878 million.

First-half profit totaled £351 million for the six months to 2 August, down from £405.6 million a year earlier, consistent with guidance issued last month. Revenue rose 18% to £5.94 billion, with organic sales up 2.7% amid what the company described as “a tough trading environment.”

JD Sports, which derives nearly 40% of its sales from the U.S. through its JD Sports, Hibbett, DTLR, and Shoe Palace chains, said it expects only a limited impact from U.S. President Donald Trump’s tariffs this year. Like-for-like sales, published last month, fell 2.5% overall, with declines of 3.8% in North America and 3.3% in the U.K.

“We remain cautious on the trading environment for the second half,” CEO Regis Schultz said.

The board declared an interim dividend of 0.33 pence, unchanged from the same period last year.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Gresham House Energy Storage Fund plc (LSE:GRID), the UK’s largest investor in utility-scale battery energy storage systems, reported a 76.9% year-on-year increase in underlying portfolio revenues to £31.7 million for H1 2025. Underlying portfolio EBITDA surged 97.6% to £20.5 million compared with the same period in 2024.

The fund confirmed it will prioritize reinvesting cash flow into growth rather than paying dividends over the next two years, with only minimal dividend distributions planned. GRID expects a small dividend of 0.11p per share in November 2025 and at least 0.25p per share in 2026. More meaningful dividend increases are anticipated from 2027 onwards, following the completion of its expansion initiatives. Net Asset Value (NAV) fell slightly by 1.5% to 107.71p per share during the period.

“This half-year period has been a critical step in delivering against the three-year strategic plan we set out in November 2024,” said John Leggate CBE, Chair of Gresham House Energy Storage Fund. “The Board believes that the growth opportunities we see represent the best future total return for investors.”

GRID has reached a milestone as the first and only Gigawatt-scale operational portfolio in Great Britain, with 1,072MW/1,701MWh of operational capacity. The company completed 330MWh of initial augmentations, increasing the portfolio’s average duration to 1.6 hours, with a further 350MWh augmentation program currently underway.

Long-term contracted revenues are in place, with 88% of the operational portfolio secured through revenue floor contracts alongside two-year revenue tolls with Octopus Energy. Post-period, GRID completed a key refinancing, unlocking capital to support further growth.

“We are very pleased with the progress made so far in 2025 and delivering on the initial steps of our Three-year Plan. We’re also delighted to be the first BESS investor to have passed the symbolic 1GW milestone for operational projects,” said Ben Guest, Fund Manager.

The company plans to double installed battery capacity over the next two years from 1.7GWh to 3.5GWh, with total installed capacity expected to increase 65% from 1.1GW to 1.8GW. Once construction spending is complete and the portfolio reaches 1.8GW, GRID estimates it could generate excess cash flows of approximately 10p per share at current merchant revenue levels.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Shares of On The Beach Group PLC (LSE:OTB) dropped 14.6% after the online travel company projected full-year profit below analyst expectations, despite posting strong growth in its core operations.

The company now anticipates adjusted profit before tax for the year ending 30 September 2025, excluding its B2B operations, to be between £34.5 million and £35.5 million. This falls short of the £38.4 million forecast by analysts. The guidance reflects plans to wind down the loss-making B2B division, Classic Collection.

Even with the profit shortfall, On The Beach reported a third consecutive year of record growth, with total transaction value (TTV) hitting £1.23 billion—up 11% year-on-year. Summer 2025 bookings rose 12% compared to last year, which the company described as “significantly ahead of the package holiday market” that grew only 3%, according to ATOL data.

“I am pleased to report another year of significant growth with record TTV of £1.23bn, representing a 11% increase on FY24. Our core B2C business has again outperformed the market, underpinned by the Group’s asset light, cash generative model and balance sheet strength,” said Shaun Morton, Chief Executive of On the Beach.

The company also highlighted operational efficiencies, projecting an EBITDA margin of roughly 34%, up from 31.7% the previous year. Customer satisfaction improved as well, with Net Promoter Score rising 17% to around 55.

RBC analysts noted that the lower-than-expected PBT will likely be a key focus for investors, linking the shortfall to an industry-wide challenge with summer holiday re-bookings.

“We would flag though that the group continues to trade well ahead of the market by c.10% and with the winding down of B2B, the full energy of the group can be put behind its fastest growth areas,” they said in a note.

On The Beach has also unveiled a new £25 million share buyback program, adding to the £30 million already returned to shareholders this fiscal year. The company secured a new four-year credit facility of £120 million, with a £30 million accordion option, replacing its previous facility due to expire in 2027.

Looking ahead, Winter 2025 bookings are reported to be 12% higher than the same period last year, while Summer 2026 bookings reflect the broader market trend of later reservations.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Saga plc (LSE:SAGA) has reported strong interim results for the first half of 2025, with significant growth in its Travel segment driving performance above expectations. Revenue rose 9%, while profit before tax more than doubled, increasing 103% compared to the prior year. Strategic initiatives are progressing well, including the successful refinancing of debt and the divestment of its Insurance Underwriting business to Ageas. The company remains on track to achieve long-term goals of reducing leverage and improving profitability, with continued focus on Travel and Insurance operations.

The outlook is supported by strong technical indicators and recent corporate developments. However, high leverage and negative net income continue to weigh on financial performance, while valuation metrics remain weak due to a negative P/E ratio and absence of dividends, resulting in a moderate overall outlook.

About Saga plc

Saga plc is a UK-based company providing products and services for customers aged 50 and over. Its offerings include cruises, holidays, insurance, personal finance, and publishing, and the company is recognized for delivering exceptional customer service.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Petro Matad Limited (LSE:MATD) has completed acidisation operations at the Heron-2 well in Block XX and is continuing efforts to clean the well and assess its productive capacity. The company is also mobilizing equipment to the Gazelle-1 well for a testing program, with operations expected to begin by the end of September. These initiatives are part of Petro Matad’s strategic plan to enhance operational capabilities and potentially increase oil production, supported by PetroChina’s provision of essential equipment.

About Petro Matad

Petro Matad Limited is an AIM-listed oil company focused on exploration and production activities in Mongolia. The company’s operations are centered on advancing its portfolio of wells to realize growth in oil output.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Genedrive PLC (LSE:GDR) has completed a fundraising round, raising approximately £3.2 million via the issuance of 1,598,750,000 new shares at a discounted price. The placing, which includes both firm and conditional elements, is designed to strengthen the company’s financial position and support strategic initiatives. Completion of the placing is subject to shareholder approval at an upcoming general meeting, with further investments and retail offers under consideration. Participation by company directors underscores confidence in Genedrive’s future prospects.

While Genedrive faces ongoing profitability challenges, it continues to benefit from strong revenue growth and a solid balance sheet. Technical indicators suggest bearish momentum, and valuation metrics are constrained by the lack of profitability. Nevertheless, recent corporate developments provide a positive outlook, potentially enhancing market positioning and future growth opportunities.

About Genedrive

Genedrive PLC operates in the healthcare sector, specializing in point-of-care pharmacogenetic testing. The company develops and commercializes rapid genetic testing solutions that enable personalized medicine and improve patient outcomes.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.