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European equities advanced on Thursday after the U.S. Federal Reserve lowered interest rates for the first time since December and signaled that further reductions are likely, citing growing weakness in the labor market.

In the U.K., the Bank of England left its policy rate unchanged at 4.00%, with seven members of the Monetary Policy Committee backing the hold and two voting for another cut. The central bank also announced plans to shrink its government bond portfolio by £70 billion over the next year.

On the continent, Germany’s DAX and France’s CAC 40 both gained 1.1%, while London’s FTSE 100 rose just 0.2%.

In corporate news, Bytes Technology Group (LSE:BYIT) surged after reporting solid first-half results that highlighted resilience in its IT services business.

Engineering company Renishaw (LSE:RSW) also traded sharply higher after posting record annual revenue and stronger adjusted earnings.

By contrast, retailer Next Plc (LSE:NXT) slumped after cautioning that sales growth is likely to slow in the second half of the 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.

Capricorn Energy (LSE:CNE) jumped 9% on Thursday after the oil and gas group reported progress in clawing back overdue payments from Egypt’s state-owned oil company.

The company said it collected $37 million from the Egyptian General Petroleum Corporation (EGPC) in July and August, with a further $50 million payment expected in October. That would bring the balance of outstanding receivables down to $160 million at the end of August, compared with $172 million at the end of June.

Capricorn reaffirmed its full-year production outlook of 17,000–21,000 barrels of oil equivalent per day, following first-half output of 20.3 kb/d. The company also trimmed its capital expenditure forecast to $75–85 million from earlier guidance, after pushing some non-drilling projects into 2026.

Operating costs are still projected at $5–7 per barrel of oil equivalent. As of June, Capricorn held $96 million in cash and did not declare a first-half dividend for fiscal 2025.

One key hurdle remains the parliamentary ratification of Capricorn’s revised license agreements in Egypt, which the company said is critical to securing its future operations in the country.

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.

London equities advanced on Thursday after the Bank of England left interest rates unchanged at 4%, sticking with its cautious stance on monetary policy. The pound held largely steady against the U.S. dollar.

By 11:15 GMT, the FTSE 100 had gained 0.1%, while sterling traded flat at $1.36. On the continent, Germany’s DAX rose 1.3% and France’s CAC 40 climbed 1.2%.

Bank of England keeps rates on hold

Seven members of the nine-member Monetary Policy Committee voted in favor of holding rates, while two backed another cut to support an economy that showed no growth in July. The decision followed a quarter-point cut in August, the fifth rate reduction in the past year.

Corporate updates: Pets at Home hit hard, Next dips, Renishaw shines

In company news, Pets at Home Group PLC (LSE:PETS) shares nosedived around 20% after CEO Lyssa McGowan stepped down abruptly and the group issued a profit warning. The retailer now expects fiscal 2026 profits in the £90–100 million range, citing weakness in its retail operations. Non-executive chair Ian Burke has assumed the role of executive chair until a permanent successor is appointed.

Next PLC (LSE:NXT) also slipped more than 5%, despite posting stronger-than-expected first-half results. Net sales reached £3.2 billion, beating consensus of £3.1 billion. Full-price sales advanced 10.9% year-over-year, with U.K. retail up 5.4%, domestic online sales up 9.2%, and international online sales surging 28.1%.

Engineering group Renishaw PLC (LSE:RSW) reported record annual revenue of £713 million, an increase of 3.1%. Adjusted pre-tax profit rose 3.8% to £127.2 million, despite headwinds in certain product categories.

Elsewhere, C&C Group (LSE:CCR) slid 7.05% after revenues for the half year came in 4% below the prior year. The drinks maker guided underlying operating profit for the period ending August 31 at €41.5–€42.0 million.

Inspecs Group PLC (LSE:SPEC) dropped 10.5% following weaker half-year results. Revenue slipped to £97.6 million from £100.6 million, while gross margin narrowed by 80 basis points to 51.8%.

M&C Saatchi PLC (LSE:SAA) lost more than 5% after revealing a 5.1% fall in like-for-like net revenue to £103.8 million for the first half of 2025. Operating profit also tumbled 36% to £10.3 million.

Deliveroo Holdings PLC (LSE:ROO) confirmed founder and CEO Will Shu will leave his role once DoorDash Inc. (NASDAQ:DASH) completes its takeover, expected on October 2.

In energy news, Octopus Energy Group announced plans to spin off its technology unit Kraken into a separate business. Kraken, which powers more than 70 million accounts worldwide, has secured $500 million in committed annual revenue through licensing deals with major utilities.

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 Inspecs Group PLC (LSE:SPEC) fell 10.5% following the release of its first-half results, which showed weaker revenue and shrinking profit margins.

The global eyewear company reported revenue of £97.6 million for the six months ending June 30, down from £100.6 million in the same period last year. On a constant currency basis, revenue dropped by 1.3% to £99.3 million.

Gross profit margin decreased by 80 basis points to 51.8%, while underlying EBITDA fell to £9.0 million from £11.0 million in the prior-year period. Diluted underlying earnings per share nearly halved, coming in at 2.08p compared with 3.94p a year earlier.

The company attributed the results to “widely reported macro-challenges, including ongoing tariff disruption and subdued consumer confidence.” Specifically, manufacturing exports from China to the U.S. continued to face tariff disruption, while reduced government spending on low vision products impacted the U.S. Optics division.

Despite the headwinds, INSPECS managed to lower operating expenses by 1.2% to £47.8 million and generated £11.2 million in cash from operations. The company also highlighted operational efficiencies, including a £1.1 million reduction in costs within its Frames and Optics division.

Net debt, excluding leases, edged up slightly to £23.6 million from £22.9 million at the end of December 2024, mainly due to final payments on deferred consideration from acquisitions and funding for discontinued operations.

INSPECS said trading in the first two months of the second half is slightly behind plan, but expressed confidence in achieving its full-year guidance, citing a growing order book and rising cost efficiencies.

The company continues to target medium-term objectives of organic revenue growth 40% above the market rate and double-digit underlying EBITDA margins.

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.

Anglo American (LSE:AAL) has cut a “small number” of roles in Queensland, Australia, including positions at its Brisbane office and nearby coal operations, as part of a move to optimize operations in the face of declining coal prices and rising costs, Reuters reported on Thursday.

The job reductions, mostly achieved through voluntary redundancies, come just a day after rival BHP announced the elimination of 750 roles at a coking coal mine in the same area. BHP attributed the cuts to depressed coal prices and elevated state government royalties, which had reduced returns.

“These changes are essential to secure the future of our steelmaking coal operations in Central Queensland,” said Ben Mansour, vice president for people and corporate relations at Anglo American Australia.

Although Anglo American did not disclose the precise number of roles affected, ABC News Australia reported that around 200 jobs were impacted, based on information from the Isaac Regional Council.

The decision highlights ongoing adjustments across Australia’s coal sector as companies respond to challenging market dynamics.

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.

Deliveroo Holdings PLC (LSE:ROO) confirmed on Thursday that its founder and CEO, Will Shu, will step down after the company’s acquisition by DoorDash, Inc. (NASDAQ:DASH) is finalized.

Shu, who launched the food delivery platform 13 years ago, will continue to serve as CEO until DoorDash’s offering scheme comes into effect, anticipated on October 2.

“I’ve decided that now is the right time to step aside. Transforming Deliveroo from an idea to what it is today has been extraordinary,” Shu said in a statement.

“Today, the Company’s growth and profitability are accelerating, and we are fulfilling our mission to transform the way people shop and eat, but after 13 years, I am looking forward to my next challenge.”

Deliveroo Chairman Claudia Arney lauded Shu’s contributions, describing him as “an incredible innovator” who has built “a British success story that has had a hugely positive impact on the way we eat and shop.”

The company further announced that all non-executive directors—including Arney, Peter Jackson, Karen Jones, Rick Medlock, Shobie Ramakrishnan, Tom Stafford, and Dominique Reiniche—will step down once the acquisition becomes effective.

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.

U.S. stock futures rose Thursday following the Federal Reserve’s anticipated interest rate reduction, marking the first cut since December. Fed Chair Jerome Powell emphasized the need to manage risks cautiously, noting particular concern over a weakening U.S. labor market. Analysts foresee additional cuts later this year, though projections from Fed officials indicate that debate over future moves could be heated. Meanwhile, investors are also awaiting the Bank of England’s upcoming rate decision, as gold pulls back from recent record levels.

Futures climb

By 03:00 ET, Dow futures had gained 141 points, or 0.3%, S&P 500 futures rose 28 points, or 0.4%, and Nasdaq 100 futures increased 149 points, or 0.6%, as traders digested both the Fed’s rate move and Powell’s policy comments.

On Wednesday, major Wall Street indices ended mixed, with the Dow Jones Industrial Average rising, while the S&P 500 and Nasdaq Composite fell. Market sentiment was further influenced by Nvidia (NASDAQ:NVDA) shares, which declined after reports that China’s internet regulator blocked large domestic tech firms from purchasing the company’s AI-focused chips.

Fed cuts rates

As expected, the Fed lowered borrowing costs by a quarter point to a range of 4% to 4.25% and signaled that two more reductions could occur in October and December. Powell described the move as a “risk management” adjustment, designed to balance the challenges of a softening labor market against persistent inflation.

He noted that weak jobs data recently has weighed heavily in the committee’s deliberations, saying “downside risks to employment have risen.” Meanwhile, accelerating inflation was considered a more temporary issue. Lower interest rates generally encourage investment and hiring, though they may also intensify inflationary pressures.

Wednesday’s cut did not receive unanimous support within the Federal Open Market Committee, with Stephen Miran advocating for a larger 50-basis point reduction. Miran, a recent appointee by President Donald Trump, had been confirmed to the FOMC minutes before the start of the Fed’s two-day meeting. While the reduction aligned with Trump’s repeated calls for swift rate cuts to support the economy, it was not as steep as he requested.

Responding to questions about the Fed’s independence, Powell affirmed that it is “deeply in our culture to do our work based on the incoming data and never consider anything else.”

Rate projections in focus

The Fed released updated projections showing officials expect another 0.5% in cuts by the end of 2025. If implemented, borrowing costs would fall to 3.5%-3.75%, down from prior estimates. However, seven of the 19 projections suggested fewer cuts this year, with one official advocating to maintain rates at 4.25%-4.5%. Analysts at Barclays noted that one estimate, believed to be Miran’s, envisioned a sharp drop to 2.75%-3%, “in line with calls by the Trump administration to rapidly lower interest rates.”

Markets are pricing in roughly a 90% chance of a 25-basis point cut in October and an 84% chance of a similar move in December, according to CME FedWatch. The projections also show most Fed officials expect 1.6% economic growth this year, with a year-end unemployment rate of 4.5% and underlying inflation at 3.1%. Price gains are not expected to return to the Fed’s 2% target until 2028.

BoE decision ahead

Attention now turns to the Bank of England, which is expected to announce its rate decision on Thursday. Unlike the Fed, the BoE is widely anticipated to hold rates at 4% after last month’s cut, its fifth reduction since August 2024. August inflation was 3.8%, the highest in 19 months and nearly double the BoE’s 2% target, likely prompting policymakers to pause while monitoring whether labor market pressures ease.

The Bank of Japan is also scheduled to meet Friday and is expected to maintain current rates amid political uncertainty.

Gold retreats

Gold extended losses in European trading, pulling back from record highs as the U.S. dollar rebounded. Analysts note that the Fed signaled a measured approach to easing, with two cuts projected for 2025 and only one anticipated in 2026, reflecting a cautious stance. Powell emphasized that decisions would be considered on a meeting-by-meeting basis, suggesting an aggressive cycle of rate cuts is unlikely.

Analysts at ING stated: “They think three more cuts will be enough to boost growth and prompt a revival in the jobs market, but the market is sceptical.”

Gold’s recent surge to all-time highs has been fueled by expectations of monetary easing, geopolitical uncertainty, and strong central bank purchases, which reduce the opportunity cost of holding non-yielding bullion.

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.

The U.S. dollar inched up Thursday following a turbulent trading session after the Federal Reserve’s interest rate reduction, while the British pound weakened as investors awaited the Bank of England’s policy announcement.

At 04:05 ET (08:05 GMT), the Dollar Index, which measures the greenback against a basket of six major currencies, was up 0.1% at 96.605, rebounding from Wednesday’s slide to its lowest point since February 2022.

Dollar rebounds after sharp moves

The dollar initially dropped to a three-and-a-half-year low after the Fed cut rates by 25 basis points on Wednesday, in line with market expectations, signaling a gradual path of easing for the remainder of the year.

However, the currency bounced back strongly after Fed Chair Jerome Powell described the move as a “risk-management cut” responding to the softening labor market, adding that the central bank does not need to rush further easing.

The Fed’s widely watched dot plot indicated a median of 50 additional basis points in cuts over the remaining two meetings of 2025, but only a single reduction projected in 2026.

Analysts at ING noted: “Regardless of the market’s hectic reaction, we read this as a negative event for the dollar. Despite Powell’s cautionary tone, the FOMC has clearly shifted to a dovish stance where it sees multiple cuts, and the focus is now firmly on the employment side of the mandate.”

With employment remaining the Fed’s priority, market attention Thursday will turn to the weekly initial jobless claims data, especially following last week’s spike.

Sterling eases ahead of BoE announcement

In Europe, GBP/USD slipped 0.1% to 1.3610 after briefly surging to its highest level since July 2 in the prior session.

The Bank of England is set to announce its policy decision later Thursday and is widely expected to hold rates at 4%, amid inflation at an annual 3.8% in August — the highest in 19 months and nearly double the central bank’s 2% target.

The BoE cut rates last month, marking its fifth reduction since August 2024, and economists anticipate one more cut before year-end.

EUR/USD climbed 0.2% to 1.1837, after touching 1.1918 on Wednesday — its highest since June 2021 — reacting to the Fed’s decision. The European Central Bank left rates unchanged last week but signaled it is prepared for potential future cuts due to uncertainty around trade, energy costs, and currency fluctuations.

ING commented: “We expect a return to 1.185 in EUR/USD over the coming days, and continue to target 1.20 in the fourth quarter.”

Yen, yuan, and antipodean currencies under scrutiny

USD/JPY rose 0.1% to 147.07 after sliding as much as 0.7% on Wednesday to its lowest since July 7. The Bank of Japan is widely expected to maintain rates at the conclusion of its two-day meeting on Friday, amid heightened political uncertainty following Prime Minister Shigeru Ishiba’s sudden resignation in early September.

August Japanese CPI data is expected before the BoJ’s decision, with forecasts pointing to persistent price pressures. Core inflation is also anticipated to remain well above the BoJ’s 2% annual target.

USD/CNY gained 0.1% to 7.1073, with the yuan easing slightly after rallying to near 10-month highs, supported by ongoing policy measures from Beijing. China has committed this week to additional stimulus aimed at boosting private consumption after a series of disappointing economic readings.

AUD/USD fell 0.1% to 0.6642, while NZD/USD dropped 0.9% to 0.5910 after GDP data showed New Zealand’s economy contracted in Q2, fueling expectations of steeper rate cuts later this 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.

Gold prices fell in Asian trading on Thursday, pulling back from record highs as the U.S. dollar regained strength following the Federal Reserve’s interest rate cut and cautious signals regarding future monetary easing.

Spot gold declined 0.7% to $3,635.55 an ounce by 02:24 ET (06:24 GMT), extending a nearly 1% loss from the previous session, during which it reached a new all-time high of $3,707.40 per ounce. Meanwhile, U.S. gold futures for December delivery slipped 1.3% to $3,670.45.

Fed Cuts Rates by 25 Basis Points, Signals Cautious Approach

The Fed lowered its benchmark rate by 25 basis points to a range of 4.00%–4.25% on Wednesday, marking its first reduction since December. Policymakers forecasted two additional cuts this year, with only one expected in 2026, reflecting a measured stance.

Chair Jerome Powell described the move as a “risk-management cut” in response to softening labor market conditions and heightened employment risks. He emphasized that policy decisions would now be made on a meeting-by-meeting basis, suggesting that aggressive easing is unlikely.

ING analysts commented: “They think three more cuts will be enough to boost growth and prompt a revival in the jobs market, but the market is sceptical.”

The U.S. Dollar Index rose 0.4% on Thursday, recovering from a 3½-year low reached in the previous session, which made gold more expensive for investors holding other currencies.

Gold has surged nearly 39% so far this year, fueled by expectations of monetary easing, geopolitical uncertainties, and strong central bank buying. However, the Fed’s cautious tone encouraged some investors to take profits following bullion’s record-setting rally.

Other Metals Follow Dollar Strength

The strengthening dollar also weighed on other precious and industrial metals on Wednesday.

Silver futures fell 1.1% to $41.72 an ounce, while platinum futures were largely unchanged at $1,370.80 per ounce.

Benchmark copper futures on the London Metal Exchange decreased 0.5% to $9,945.80 per ton, with U.S. copper futures similarly down 0.5% to $4.60 per pound.

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.

Oil prices declined in Asian trading on Thursday, easing after earlier gains to two-week highs as markets digested the Federal Reserve’s interest rate cut and mixed U.S. inventory reports.

Crude had been climbing steadily this week as ongoing military activity between Russia and Ukraine stoked fears of disruptions to Russian oil production. Speculation over potential additional Western sanctions on Russia’s oil sector also supported prices.

A weaker U.S. dollar earlier in the week had contributed to crude’s gains, but the dollar strengthened on Thursday, putting downward pressure on oil. Brent crude for November delivery fell 0.5% to $67.62 per barrel, while West Texas Intermediate (WTI) crude futures also dropped 0.5% to $63.37 per barrel by 22:01 ET (02:01 GMT).

Despite the recent gains, oil prices are still coping with significant losses in 2025, as concerns over slowing demand and potential oversupply continue to weigh.

Fed Rate Cut and Market Outlook

The Federal Reserve reduced interest rates by 25 basis points on Wednesday, as widely anticipated, and indicated it would continue gradual cuts in the coming months. The move largely met market expectations, with CME FedWatch showing traders pricing in a 93% probability of another 25-basis-point cut in October.

While lower rates typically support higher oil demand, markets are cautious given the Fed’s signals about increasing concern over the U.S. economy. Analysts noted that a cooling labor market appeared to be the primary driver of the Fed’s decision. However, persistently high U.S. inflation could limit further easing, especially if inflationary pressures from elevated trade tariffs become more pronounced.

Following the Fed’s announcement, the U.S. dollar strengthened, recovering from a 3½-year low reached before the rate cut. This dollar resilience added pressure on crude prices.

Mixed U.S. Inventory Data

Data from the Energy Information Administration (EIA) on Wednesday showed a surprising 9.285 million-barrel draw in U.S. oil inventories for the week ending September 12. Gasoline stockpiles also fell by 2.3 million barrels, primarily driven by strong export activity.

However, these reductions were largely offset by a 4 million-barrel increase in distillate inventories, signaling softer demand for fuels and other oil products ahead of the winter season, which typically sees weaker oil consumption.

ANZ analysts commented that “a large jump in EIA’s adjustment factor also cast doubt over the validity of the (inventory) data.”

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.