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Barclays has upgraded its recommendations on LVMH (EU:MC) and Kering (EU:KER), saying both luxury groups are well positioned to outperform a slowing sector through internal restructuring efforts and brand recovery initiatives.

The bank raised its rating on LVMH to Overweight from Equal Weight and increased its price target to €600 from €575. Kering was upgraded to Equal Weight from Underweight, while its target price was lifted to €300 from €255.

Shares in both companies advanced in Paris trading, with LVMH gaining 1% and Kering rising 1.3%.

Barclays also announced that analyst Viktoria Petrova has taken over primary coverage of the two luxury groups.

Barclays Sees Moderate Luxury Market Growth Ahead

The bank expects the broader luxury sector to expand by around 3% in 2026 before stabilising near 4% growth levels in the longer term.

Against that backdrop, Barclays said it is favouring companies capable of outperforming the sector through brand-specific and operational improvements rather than relying solely on industry-wide demand recovery.

For LVMH, Barclays highlighted recovery potential at Tiffany and Dior, which together represent more than 15% of group revenue.

The bank expects Tiffany to generate annual revenue growth of roughly 10% through 2029, eventually reaching around €7 billion in sales, supported by store renovations and product assortment improvements.

Dior, meanwhile, is projected to return to its 2023 sales peak of €8.9 billion by 2029 as the brand’s creative repositioning gains momentum.

Barclays also noted that after falling 26% since the start of the year — compared with a 5% gain for MSCI Europe — LVMH is currently trading at roughly 20 times forward earnings, representing an estimated 16% discount to its historical valuation average.

“With near-term potential catalysts pointing to an acceleration in growth, we see current levels as an attractive buying opportunity,” Petrova wrote.

The analyst added that she expects growth momentum to improve from the second quarter of 2026 as year-on-year comparisons become more favourable.

Barclays Expects Gucci Restructuring to Support Kering Recovery

Barclays’ outlook for Kering is centred more heavily on cost control measures and operational restructuring at Gucci.

The bank forecasts revenue compound annual growth of around 8% between fiscal years 2027 and 2029, implying annual outperformance of roughly four percentage points relative to the wider luxury sector.

Barclays also expects Kering’s EBIT margin to almost double from fiscal 2025 levels to 21.7% by fiscal 2029, reaching that target a year earlier than management’s own guidance.

According to the bank, store closures and restructuring efforts are expected to reduce fixed costs related to staffing, leases and administrative expenses.

Petrova also projected earnings per share compound annual growth of approximately 55% over the same period, while noting that Barclays’ 2030 forecasts still assume sales productivity, revenues and margins below previous peak levels.

At the same time, the analyst warned that market expectations for Kering in fiscal years 2026 and 2027 remain “too high,” indicating that additional downward revisions may still be necessary before a broader recovery takes hold.

“We see ’26E as a reset year as the company needs to stabilise performance,” Petrova said.

Shares in Intertek (LSE:ITRK) climbed more than 5% on Tuesday after Swedish private equity firm EQT AB submitted a fourth and final takeover proposal for the British testing and certification group, valuing the company at approximately £9.4 billion ($12.7 billion).

The London-listed company confirmed it is reviewing the latest approach after previously rejecting three earlier offers from EQT.

Under the revised proposal, Intertek shareholders would receive 60 pounds per share in cash, alongside a potential fiscal 2025 dividend of 1.1 pounds per share. EQT’s previous proposals had been set at 51.5 pounds, 54 pounds and 58 pounds per share respectively.

The latest cash offer alone represents a premium of roughly 59% compared with Intertek’s share price before market speculation around a possible takeover first emerged, although the valuation remains below the stock’s highs reached during the pandemic period.

EQT said the proposal provides “certain and accelerated cash value at a full valuation for Intertek shareholders, superior to the range of outcomes associated with Intertek’s standalone prospects.”

EQT Faces Deadline Under UK Takeover Rules

Under UK takeover regulations, EQT has until Thursday to either submit a formal bid or withdraw its interest.

If Intertek rejects the latest proposal, the private equity group would generally be prevented from making another offer for at least six months, except under limited conditions.

Analysts at RBC Capital Markets said shareholders may now push the company’s board to engage more actively with EQT.

“We believe ITRK investors, some of whom have expressed that any offer would need to start with a ’6’, should encourage the board to seriously engage with EQT,” the analysts wrote.

“We see EQT’s bid as a fair balance between compensating ITRK shareholders for future upside potential, and creating a cushion of safety for EQT as it likely plans to prepare ITRK for the next stage on it strategic journey,” they added.

Strategic Review Continues Despite Bid Interest

Intertek has repeatedly rejected EQT’s approaches over recent weeks while continuing with its own strategic review process, which could potentially lead to a breakup of the business into separate units.

The company has argued that a full takeover could involve considerable execution risks and has also indicated that it has received encouraging interest in its energy and infrastructure operations.

Meanwhile, two shareholders — PrimeStone Capital and Palliser — have publicly urged Intertek’s board to open discussions with the buyout group.

Copper prices surged on Tuesday, touching their strongest levels in over three months as concerns over constrained supply and bullish technical signals continued to support the market.

Three-month copper contracts on the London Metal Exchange climbed 2.7% to $13,943 per metric ton by 1013 GMT, following Monday’s record settlement.

The advance came despite ongoing geopolitical uncertainty linked to the conflict involving Iran. U.S. President Donald Trump said Tuesday that the ceasefire with Tehran was “on life support,” dampening hopes that a peace deal could be reached quickly.

Gold prices moved lower in Asian trading on Tuesday as investors closely followed developments surrounding the fragile ceasefire between the United States and Iran, while also awaiting a highly anticipated meeting between Donald Trump and Chinese President Xi Jinping later this week.

Spot gold declined 0.7% to $4,702.84 per ounce by 02:52 ET (06:52 GMT), while U.S. gold futures slipped 0.4% to $4,710.66 per ounce.

Other precious metals also traded lower, with spot silver falling 2.4% to $84.03 per ounce and platinum declining 3.2% to $2,067.19 per ounce.

Trump Says Iran Truce Remains Under Pressure

Market sentiment remained cautious after Trump criticised Iran’s latest response to a U.S.-supported peace proposal, calling it “a piece of garbage” and warning that the ceasefire remained at risk after weeks of indirect negotiations.

The U.S. president described the truce as being on “massive life support,” raising concerns that tensions in the Gulf could intensify again.

Iranian officials responded by saying the country’s military was prepared to respond forcefully to any “act of aggression.”

Tehran also defended its negotiating position, arguing that demands related to sanctions relief, restoring oil exports and recognition of Iran’s authority over the Strait of Hormuz were justified.

Oil prices stayed elevated on Tuesday amid concerns that additional disruption around the Strait of Hormuz could impact global crude supply flows.

Higher energy prices have limited support for gold, as investors worry that persistent inflationary pressure could prompt the Federal Reserve to keep interest rates elevated for an extended period. Higher rates generally reduce the attractiveness of non-yielding assets such as bullion.

Focus Turns to U.S. Inflation Figures and Trump-Xi Discussions

Investors are also watching closely for Trump’s expected meeting with Xi Jinping in Beijing later this week.

The discussions are expected to cover a range of geopolitical and economic topics, including Iran, Taiwan, trade disputes, artificial intelligence and energy security.

Attention is also shifting toward upcoming U.S. inflation data, especially the Consumer Price Index report due later Tuesday, which could offer additional clues about the Federal Reserve’s future monetary policy direction.

The U.S. Dollar Index gained 0.2% during Asian trading hours, making gold more expensive for investors using foreign currencies.

In base metals trading, benchmark copper futures on the London Metal Exchange slipped 0.3% to $13,848.13 per ton, while U.S. copper futures declined 0.6% to $6.45 per pound.

Oil prices moved higher on Tuesday as investors grew less confident that a near-term agreement could bring an end to the conflict involving the United States, Israel and Iran, pushing supply risks back into focus.

Brent crude futures climbed $2, or 1.9%, to $106.21 per barrel, while U.S. West Texas Intermediate crude rose $2.31, or 2.4%, to $100.38 by 0726 GMT. Both contracts had already gained nearly 2.8% in Monday’s trading session.

Market sentiment shifted after U.S. President Donald Trump suggested that negotiations with Tehran remained deadlocked. Trump said Monday that the ceasefire with Iran was “on life support,” citing unresolved disagreements over several core issues.

Among the sticking points are demands related to ending military operations across all fronts, removing the U.S. naval blockade, restarting Iranian crude exports and compensation for damage caused during the conflict.

Iran also reaffirmed its control over the Strait of Hormuz, the strategically important shipping corridor that handles around 20% of global oil and liquefied natural gas flows.

“Optimism regarding an imminent (peace) deal seems to be fading again and if we don’t see a deal by the end of May, then upside risks for oil prices are definitely on the table,” said DBS Bank energy sector team lead Suvro Sarkar.

Supply disruptions linked to the near shutdown of the Strait of Hormuz have already forced some producers to reduce exports. A Reuters survey released Monday showed OPEC oil production in April dropped to its lowest level in more than two decades.

“A genuine breakthrough toward a peace deal could trigger a sharp $8-$12 correction, while any escalation or renewed blockade threats would quickly push Brent back toward $115+,” said Tim Waterer, chief market analyst at KCM Trade.

Saudi Aramco chief executive Amin Nasser warned Monday that interruptions to oil shipments through the Strait of Hormuz could delay a return to balanced market conditions until 2027, potentially disrupting roughly 100 million barrels of oil per week.

Lower U.S. Crude Inventories Add Pressure to Markets

Concerns around tightening supply were also supported by expectations of declining U.S. crude stockpiles.

Analysts surveyed by Reuters expect U.S. oil inventories to have fallen by roughly 1.7 million barrels last week.

The expected decline comes amid “a backdrop of continued strong net waterborne export flows for crude and products, across the next several weeks,” said Walt Chancellor, energy strategist at Macquarie Group.

Investors Watch Trump-Xi Talks and China Sanctions

Markets are also monitoring the upcoming meeting between President Trump and Chinese President Xi Jinping, scheduled for Thursday and Friday.

The talks follow recent U.S. sanctions targeting three individuals and nine companies accused of helping facilitate Iranian oil shipments to China.

At the same time, tariffs introduced during the U.S.-China trade dispute have effectively halted most Chinese imports of U.S. crude oil and liquefied natural gas. Those imports were valued at approximately $8.4 billion in 2024, the year before Trump returned to office for his second term.

U.S. equity futures traded lower on Tuesday as investors remained cautious over the lack of progress in negotiations between Washington and Tehran, while also awaiting a closely watched U.S. inflation report.

As of 03:28 ET, Dow Jones futures were down 71 points, or 0.1%. Futures tied to the S&P 500 fell 25 points, or 0.3%, while Nasdaq 100 futures declined 193 points, or 0.7%.

Wall Street finished Monday’s session slightly higher, helped largely by continued strength in semiconductor and artificial intelligence-related shares. Investor appetite for AI-linked companies has remained firm despite ongoing geopolitical uncertainty.

Still, analysts at Vital Knowledge argued that broader market conditions appeared less robust beneath the surface.

“[W]e continue to think the price action in chips/components is extremely extended and unsustainable while an Iran deal, to the extent one arrives, is more likely to trigger a sell-the-news response than spur material additional gains (since it’s already assumed that an agreement will be struck),” the analysts wrote in a note.

They also noted that the equal-weight version of the S&P 500 lagged during Monday’s session, while rising government bond yields and higher oil prices added pressure to broader market sentiment.

Iran Negotiations Show Little Sign of Progress

Investor hopes for a near-term breakthrough in U.S.-Iran negotiations weakened further after comments from President Donald Trump suggested talks remained deadlocked.

Speaking to reporters on Monday, Trump said the ceasefire between the two countries was on “massive life support” after dismissing Iran’s latest response to a U.S. peace proposal.

Trump described the Iranian counteroffer as “unacceptable” and later referred to it as “a piece of garbage,” adding that he did not believe it was worth reading in full.

At the same time, concerns about renewed military escalation resurfaced. CNN reported that Trump is seriously considering restarting large-scale combat operations amid frustration over the slow pace of diplomatic discussions.

Some market participants believe Trump’s upcoming trip to China and expected meeting with Chinese President Xi Jinping could potentially help revive negotiations. China remains a major buyer of Iranian crude oil and may play a role in supporting any future peace arrangement.

For now, however, uncertainty surrounding the conflict continues to weigh heavily on the global economic outlook.

Oil Extends Rally Above $105 Per Barrel

Energy prices continued climbing as geopolitical risks remained elevated.

Brent crude futures rose 2.0% to $106.30 per barrel, staying far above pre-conflict levels near $70 earlier this year.

Much of the increase in oil prices has been linked to ongoing disruption in the Strait of Hormuz, the strategically critical shipping route off Iran’s southern coast that normally handles roughly 20% of global oil flows.

The waterway has effectively remained blocked for weeks because of military tensions involving both Iran and the United States, disrupting supply chains and fueling concerns over a broader energy shock.

Trump’s latest remarks reinforced expectations that any resolution could take time, providing further support for crude prices.

Investors Await Key U.S. CPI Report

The surge in oil prices has intensified concerns that inflationary pressures could remain elevated, increasing the likelihood that central banks maintain restrictive monetary policy.

Markets are now focused on Tuesday’s U.S. consumer price index report for further signals on inflation trends.

Economists expect headline CPI for April to rise 3.7% year-on-year, compared with 3.3% in March, largely reflecting higher gasoline prices. On a monthly basis, CPI growth is expected to slow to 0.6% from 0.9%.

Investors will also closely monitor core CPI, which excludes food and energy prices and is widely viewed as the Federal Reserve’s preferred inflation gauge. Core inflation is expected at 2.7% annually and 0.3% monthly, versus 2.6% and 0.2% previously.

The core reading is “ultimately what matters most” for the Federal Reserve, ING strategists said in a note.

“Still, it is probably too early to expect clear evidence of second round effects,” they added.

Sam Altman Faces Growing Republican Scrutiny

Separately, Sam Altman is reportedly facing increasing scrutiny from Republican lawmakers and several Republican state attorneys general ahead of a potential public listing of OpenAI later this year.

According to the Wall Street Journal, the Republican-led House Oversight Committee has launched an investigation into potential conflicts of interest involving Altman’s personal investments and OpenAI’s business relationships.

The committee has reportedly requested documents concerning OpenAI’s governance practices and ties to companies backed by Altman.

The newspaper also said Republican attorneys general from Florida, Montana, Nebraska, Iowa, West Virginia and Louisiana have urged the U.S. Securities and Exchange Commission to review OpenAI’s governance structure before any IPO proceeds.

The scrutiny follows earlier reports that Altman had encouraged OpenAI to support companies in which he held personal stakes, including nuclear fusion startup Helion and aerospace company Stoke Space.