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  • Diploma raises full-year outlook following strong third quarter and US acquisition (DPLM)

    Diploma raises full-year outlook following strong third quarter and US acquisition (DPLM)

    Diploma PLC (LSE:DPLM) has upgraded its full-year guidance after delivering another strong quarter, supported by double-digit organic growth and the completion of a strategic acquisition in the United States. The company reported continued strength across its Controls division, improving trends in Seals, and resilient demand in Life Sciences despite mixed market conditions.

    Strong trading supports higher guidance

    Organic revenue increased 15% during the third quarter, extending the momentum established in the first half of the financial year. Controls remained the standout performer, while Seals recorded a modest improvement and Life Sciences continued to perform steadily despite more challenging end markets.

    Diploma also completed the acquisition of CDM, strengthening its position in the US interconnect market with a platform focused primarily on the defence sector. The deal expands the group’s presence in an attractive niche and supports its long-term acquisition strategy.

    Reflecting the strong performance, the company now expects full-year organic revenue growth of approximately 14%, an operating margin of around 26.5%, and operating profit growth of roughly 42%. The revised guidance represents another upgrade to market expectations and highlights the group’s confidence in its trading outlook, acquisition pipeline and financial flexibility.

    Growth strategy continues to deliver

    The latest update demonstrates the strength of Diploma’s model of combining sustained organic expansion with carefully selected acquisitions. Businesses including IS Group, Clarendon, Peerless and Windy City Wire all delivered double-digit growth, reinforcing the company’s ability to generate consistent performance across its portfolio.

    Management also pointed to favourable trading conditions within Controls and resilient demand across the wider business, giving investors greater confidence that earnings momentum can continue while the company pursues further acquisition opportunities supported by a strong balance sheet.

    Investment outlook

    Diploma’s latest trading update reflects a business benefiting from robust revenue growth, expanding margins and healthy cash generation. The upgraded guidance and continued operational execution provide additional confidence in the group’s earnings trajectory, while its active acquisition strategy remains a key driver of long-term growth.

    Although the shares continue to trade on a relatively demanding valuation with a high price-to-earnings multiple and a modest dividend yield, the company’s consistent execution and positive trading momentum help support its premium rating.

    About Diploma

    Diploma PLC is an international value-added distribution group supplying specialised products and services across a wide range of industries. Operating throughout the US, Canada, the UK, Europe and Australia, the FTSE 100 company employs around 3,500 people. Over the past five years, it has delivered average adjusted earnings per share growth of approximately 26% annually through a combination of organic expansion and strategic acquisitions.

  • U.S. futures advance as softer inflation data boosts market sentiment: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. futures advance as softer inflation data boosts market sentiment: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. stock futures traded higher on Wednesday after another encouraging inflation report strengthened hopes that the Federal Reserve may not need to raise interest rates in the near term. Investors, however, remained cautious as rising oil prices and escalating tensions in the Middle East continued to cloud the broader outlook.

    Producer prices fall more than expected

    Markets reacted positively after the U.S. Labor Department reported that producer prices declined by 0.3 percent in June, exceeding expectations for a 0.1 percent decrease.

    The annual producer inflation rate also slowed to 5.5 percent from a revised 6.0 percent in May, adding to evidence that inflationary pressures may be easing.

    The figures followed Tuesday’s weaker-than-expected consumer inflation report, reinforcing expectations that the Federal Reserve could adopt a more patient approach to monetary policy.

    Rising oil prices limit optimism

    Despite the softer inflation data, gains across equity futures remained measured as crude oil prices continued to climb.

    During an interview with Fox News, President Donald Trump warned that further military action against Iran remained possible.

    “unless they get to the table and negotiate.”

    Higher energy prices have raised concerns that inflation could prove more persistent, potentially delaying any future reduction in interest rates.

    Technology stocks lead Wall Street higher

    U.S. markets closed higher on Tuesday, led by gains in technology shares.

    The Nasdaq Composite climbed 0.9 percent, while the S&P 500 added 0.4 percent. The Dow Jones Industrial Average finished only slightly higher after being weighed down by a sharp decline in IBM (NYSE:IBM).

    IBM falls while chip stocks rebound

    IBM shares plunged more than 25 percent after the company released preliminary quarterly results that disappointed investors.

    Meanwhile, semiconductor stocks recovered strongly, with the Philadelphia Semiconductor Index rising 2.5 percent and the NYSE Arca Computer Hardware Index gaining 2.7 percent.

    Steel, networking and gold-related shares also posted solid gains, while healthcare, pharmaceutical and airline stocks underperformed.

    Investors are continuing to monitor incoming economic data and geopolitical developments for further direction.

  • European markets trade cautiously as Middle East tensions outweigh strong corporate earnings: DAX, CAC, FTSE100

    European markets trade cautiously as Middle East tensions outweigh strong corporate earnings: DAX, CAC, FTSE100

    European equity markets were little changed on Wednesday as investors balanced another round of encouraging corporate earnings against rising geopolitical risks in the Middle East.

    Government bond yields across the euro area remained close to multi-year highs amid concerns that tensions between the United States and Iran could escalate further, keeping investors cautious despite several positive company updates.

    Major indices remain under pressure

    Germany’s DAX declined 0.6 percent, while the UK’s FTSE 100 slipped 0.1 percent. France’s CAC 40 traded broadly flat during the session.

    ASML leads technology sector higher

    ASML Holding (EU:ASML) was among the strongest performers after the Dutch semiconductor equipment manufacturer raised its annual sales guidance for the second time this year, reflecting continued strength in artificial intelligence-related investment.

    Corporate earnings drive individual movers

    Dr. Martens (LSE:DOCS) advanced after reaffirming its full-year outlook ahead of its annual general meeting.

    Hunting (LSE:HTG) also posted solid gains after reporting resilient first-half trading and maintaining its 2026 guidance.

    Norwegian oil producer Aker BP (FTSE:SSAK) moved higher following stronger-than-expected second-quarter results.

    Luxury goods group Richemont (TG:RITN) rallied after quarterly sales exceeded expectations, supported by robust demand for its jewellery division.

    Retail and mining stocks lag

    B&M European Value Retail (LSE:BME) came under pressure after reporting modest first-quarter sales growth.

    Mining group Antofagasta (LSE:ANTO) also traded lower after reporting a 9.5 percent decline in first-half copper production.

    Meanwhile, Delivery Hero (TG:DHER) lost ground after confirming it is in advanced discussions with Uber Technologies regarding a potential takeover proposal.

  • Gold slips as rising oil prices revive inflation concerns

    Gold slips as rising oil prices revive inflation concerns

    Gold prices moved lower on Thursday as investors shifted their focus from weaker U.S. inflation data to the recent recovery in oil prices, raising concerns that inflation could remain elevated and delay any move by the Federal Reserve to lower interest rates.

    Precious metals lose momentum

    At 04:41 ET (08:41 GMT), spot gold (XAU/USD) declined 0.63 percent to 4,027.31 dollars an ounce, while gold futures fell 0.89 percent to 4,033.35 dollars.

    Silver (XAG/USD) dropped 0.70 percent to 58.30 dollars an ounce, while platinum (XPT/USD) gained 0.34 percent to 1,638.20 dollars.

    Softer inflation provides only temporary support

    Earlier this week, gold rallied more than 2 percent after U.S. consumer price data showed the first monthly decline in inflation since 2020.

    The weaker inflation reading lowered Treasury yields and weighed on the U.S. dollar as investors reduced expectations of an immediate interest rate increase.

    However, the rally proved short-lived as attention quickly returned to the inflationary impact of rising energy prices.

    Oil keeps pressure on the Federal Reserve outlook

    Crude oil has remained close to recent highs following renewed geopolitical tensions in the Middle East, increasing concerns that higher energy costs could keep inflation above the Federal Reserve’s target.

    Although gold is often viewed as a hedge against inflation, a prolonged period of elevated interest rates generally reduces demand for non-yielding assets by increasing the attractiveness of fixed-income investments.

    Markets await producer price data

    Federal Reserve policymakers welcomed the latest inflation figures but stressed that more evidence is needed before concluding that inflation is moving sustainably back towards target.

    ANZ analysts said:

    “Gold could remain rangebound in the near term as expectations for at least one Federal Reserve rate hike this year continue to limit upside.”

    They also believe buyers are likely to return if prices weaken further because the longer-term outlook for gold remains constructive.

    Investors are now awaiting U.S. producer price data for additional guidance on inflation. CME FedWatch currently indicates a 58 percent probability of a Federal Reserve rate increase in September, down from around 76 percent before the latest CPI release.

  • Oil prices extend rally as Middle East tensions keep supply concerns in focus

    Oil prices extend rally as Middle East tensions keep supply concerns in focus

    Crude oil prices moved higher for a third consecutive session on Wednesday after U.S. President Donald Trump signalled that military operations against Iran could intensify. At the same time, the United States reinstated its maritime blockade on Iranian shipping through the Strait of Hormuz, reinforcing concerns over potential disruptions to global energy supplies.

    Brent and WTI remain close to monthly highs

    At 03:53 ET (07:53 GMT), Brent crude futures for September delivery rose 0.6 percent to 85.23 dollars a barrel, while West Texas Intermediate crude futures gained 0.4 percent to 79.67 dollars a barrel.

    Both benchmarks continued to trade near one-month highs after rallying almost 10 percent earlier in the week.

    Trump signals further military action

    The U.S. military confirmed it launched additional strikes against Iranian targets early Wednesday, focusing on capabilities linked to attacks on commercial shipping in the Strait of Hormuz.

    Speaking to Fox News, President Trump said military operations would continue unless Iran agreed to resume negotiations.

    “We will continue striking Iran until it returns to the negotiating table,”

    he said, adding that power stations and bridges could become targets as early as next week if no agreement is reached.

    Trump also stated that military and coastal infrastructure would remain legitimate targets, while energy facilities would not be attacked for the time being.

    Maritime blockade supports crude prices

    Investor concerns over oil supplies also increased after Washington officially reinstated its blockade on Iranian shipping.

    However, Trump later abandoned a proposal to introduce a 20 percent transit fee on cargo moving through the Strait of Hormuz following opposition from several Gulf allies.

    Despite that decision, traders continue to monitor developments closely, as any disruption to oil exports from the region could tighten global supply and keep upward pressure on crude prices.

  • U.S. futures edge higher as cooling inflation and ASML earnings lift investor confidence: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. futures edge higher as cooling inflation and ASML earnings lift investor confidence: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. equity futures traded slightly higher on Wednesday after inflation data came in below expectations, easing concerns over additional Federal Reserve interest rate increases. Investors also continued to monitor a busy earnings season, with strong results from ASML (EU:ASML) reinforcing optimism around artificial intelligence investment, while geopolitical tensions between the United States and Iran remained firmly in focus.

    Inflation data supports technology shares

    S&P 500 futures gained 0.2 percent in early trading, Nasdaq 100 futures advanced 0.6 percent and Dow Jones futures slipped 0.1 percent.

    The latest inflation report suggested price pressures are continuing to moderate, reducing expectations that the Federal Reserve will tighten monetary policy further in the near term. The softer inflation outlook provided support for growth sectors, particularly technology stocks, which are highly sensitive to interest rate expectations.

    Trump signals continued pressure on Iran

    Geopolitical uncertainty remained elevated after President Donald Trump said U.S. military operations against Iran would continue until Tehran agreed to negotiate.

    Speaking to Fox News, Trump said discussions had taken place with Iranian officials but warned that military action would continue.

    “They better make a deal,” he said, adding that Iran would otherwise, “not have anything left.”

    Although Trump abandoned plans to introduce a shipping protection fee for vessels passing through the Strait of Hormuz, investors remain alert to any escalation that could disrupt global oil supplies and revive inflation concerns.

    ASML highlights ongoing AI investment

    ASML (EU:ASML) raised its full-year outlook after reporting second-quarter results that exceeded expectations.

    The company now forecasts annual revenue of between 43 billion euros and 45 billion euros after second-quarter sales reached 9.33 billion euros.

    The results suggest semiconductor manufacturers continue to invest heavily in artificial intelligence infrastructure, providing further support for companies supplying advanced chipmaking equipment.

    IBM underlines changing technology spending

    IBM (NYSE:IBM) remained under pressure after warning that customer spending is increasingly shifting towards artificial intelligence infrastructure instead of traditional software.

    The sharp decline in IBM shares highlighted the growing divergence between companies benefiting from AI investment and those facing slower demand for legacy technology products.

    Investors await more earnings

    Attention now turns to another busy session of earnings releases, with BNY (NYSE:BNY), BlackRock (NYSE:BLK), Morgan Stanley (NYSE:MS) and United Airlines (NASDAQ:UAL) all scheduled to report.

    The latest earnings updates are expected to provide fresh insight into corporate profitability, consumer demand and the broader outlook for the U.S. economy.

  • European stocks trade cautiously as ASML’s strong results offset technology sector weakness: DAX, CAC, FTSE100

    European stocks trade cautiously as ASML’s strong results offset technology sector weakness: DAX, CAC, FTSE100

    European stock markets traded cautiously on Wednesday as investors balanced stronger-than-expected results from semiconductor equipment maker ASML (EU:ASML) against renewed weakness in global technology stocks following disappointing results from IBM (NYSE:IBM).

    The pan-European STOXX 600 traded close to unchanged, reflecting uncertainty as investors weighed corporate earnings alongside expectations for interest rates and upcoming economic data.

    Germany’s DAX fell almost 1 percent, France’s CAC 40 declined 0.4 percent and London’s FTSE 100 lost 0.6 percent.

    ASML provides support for European technology shares

    ASML, Europe’s largest listed technology company, rose 3.3 percent after reporting second-quarter revenue that comfortably exceeded market expectations.

    The company attributed its strong performance to continued demand for artificial intelligence chip manufacturing equipment and raised its full-year guidance, reinforcing confidence that investment in AI infrastructure remains robust.

    The upbeat results provided support for the semiconductor sector and helped limit broader market declines.

    IBM results weigh on investor sentiment

    Despite ASML’s strong performance, gains across European technology stocks were limited by the market reaction to IBM’s preliminary second-quarter results in the United States.

    IBM missed revenue expectations, prompting a sharp sell-off in its shares and raising concerns that corporate spending is shifting away from traditional software and infrastructure towards artificial intelligence hardware.

    The weaker sentiment affected several European technology companies, with SAP (TG:SAP) falling 2.1 percent and Capgemini (EU:CAP) declining 1.1 percent.

    Markets remain focused on inflation and interest rates

    Investors also continued to assess the implications of the latest United States inflation data.

    Although headline inflation eased more quickly than economists had expected, underlying inflation remained persistent enough for financial markets to continue pricing in the possibility of another Federal Reserve interest rate increase before the end of the year.

    Expectations that borrowing costs could remain elevated for longer continued to limit appetite for risk assets.

    Attention later in the session was expected to turn to eurozone industrial production data, which investors will watch closely for further signs of the health of Europe’s manufacturing sector.

    Other market movers

    Among individual stocks, Seco (BIT:IOT) gained 6.6 percent after reporting higher first-half sales.

    TomTom (EU:TOM2) fell 2.5 percent following the release of its latest quarterly results.

  • European semiconductor stocks rally after ASML raises 2026 outlook again

    European semiconductor stocks rally after ASML raises 2026 outlook again

    European semiconductor shares moved higher after ASML Holding (EU:ASML) increased its full-year guidance for the second time in 2026, reflecting continued strong demand for advanced chipmaking equipment as investment in artificial intelligence infrastructure accelerates.

    ASML lifts sales and margin forecasts

    ASML shares climbed 5.3 percent in early Amsterdam trading. The positive update also lifted the wider semiconductor sector, with Soitec (EU:SOI) gaining 3.6 percent, Jenoptik (TG:GEN) rising 5.5 percent and BE Semiconductor (EU:BESI) advancing 0.8 percent.

    The company now expects annual revenue of between 43 billion euros and 45 billion euros, compared with previous guidance of 36 billion euros to 40 billion euros. Gross margin is forecast to range between 54 percent and 56 percent, up from the earlier expectation of 51 percent to 53 percent.

    Chief Executive Christophe Fouquet said:

    “AI-related investments and continued progress in AI technologies are driving demand for advanced logic and memory chips, further strengthening the semiconductor industry’s growth outlook.”

    Third-quarter guidance exceeds expectations

    ASML expects third-quarter revenue of 11.5 billion euros, around 11 percent above the Visible Alpha consensus forecast of 10.37 billion euros.

    The company also projected a gross margin of 56 percent for the quarter, comfortably ahead of analysts’ expectations of 52.1 percent.

    According to Bank of America, the updated guidance implies fourth-quarter revenue of 14.41 billion euros, compared with the market consensus of 11.62 billion euros. Gross profit is projected at 8.08 billion euros with a 56 percent margin, exceeding consensus estimates of 6.11 billion euros and a 53 percent margin.

    The bank’s analysts said ASML delivered:

    “robust 2Q results driven by stronger Installed Base Management (IBM) sales & margins.”

    AI demand continues to support expansion

    Strong demand for memory and storage chips has continued as artificial intelligence investment outpaces supply.

    Fouquet said memory-related revenue is expected to increase by 75 percent this year, highlighting continued demand for ASML’s manufacturing equipment. He also noted that the company is close to securing all the orders required for next year’s extreme ultraviolet lithography systems and is considering increasing production capacity.

    ASML is evaluating a roughly 30 percent increase in EUV system output during 2027, followed by a further 30 percent expansion in 2028, after customers placed substantial orders well in advance.

    For the second quarter, ASML reported revenue of 9.33 billion euros, up from 7.69 billion euros a year earlier and above analyst expectations of 8.83 billion euros.

  • European luxury shares climb after Richemont delivers stronger-than-expected quarterly sales

    European luxury shares climb after Richemont delivers stronger-than-expected quarterly sales

    European luxury stocks moved higher after Richemont (TG:RITN) reported first-quarter revenue that exceeded market forecasts, sending the Swiss luxury group’s shares up more than 7 percent and putting them on course for their strongest daily performance since April.

    Jewellery division powers revenue growth

    The owner of Cartier reported first-quarter sales of 6.33 billion euros at constant exchange rates, representing a 20 percent increase from a year earlier and comfortably ahead of the 5.90 billion euros forecast by analysts surveyed by Visible Alpha.

    Richemont’s jewellery division, its largest business, generated quarterly revenue of 4.73 billion euros, an increase of 24 percent year on year. The performance marked the seventh consecutive quarter of double-digit growth for the division.

    Luxury sector benefits from upbeat results

    Richemont’s strong update lifted sentiment across the European luxury sector.

    Hermes (EU:RMS), Kering (EU:KER) and LVMH (EU:MC) advanced between 2.4 percent and 2.9 percent during early trading. Swatch (TG:UHR) gained almost 4 percent, while Burberry (LSE:BRBY) rose 1.6 percent and Moncler (BIT:MONC) added 0.7 percent.

    Analysts see further upside

    Deutsche Bank said Richemont’s better-than-expected results, together with lower gold prices, are likely to drive meaningful upgrades to market earnings forecasts. The broker expects the shares to deliver a high single-digit percentage gain following the update.

    Citi also highlighted the strength of the company’s core jewellery business across every major region, stating that it:

    “continue to view one of the sector’s undisputed growth leaders as offering attractive upside potential.”

    Richemont’s watchmaking division also delivered a solid performance, with quarterly sales increasing 8 percent.

    Growth broadens across global markets

    The company reported particularly strong momentum in the Americas and Asia-Pacific.

    Revenue in the Americas increased 27 percent, accelerating from 18 percent growth in the previous quarter. Sales across Asia-Pacific, including China, rose 21 percent compared with 14 percent previously.

    European sales grew 11 percent, while the Middle East returned to growth despite disruption linked to the conflict involving Iran, as stronger local demand helped offset weaker tourist spending.

  • Bank of America upgrades Imperial Brands on improving outlook and attractive valuation (IMB)

    Bank of America upgrades Imperial Brands on improving outlook and attractive valuation (IMB)

    Bank of America has upgraded Imperial Brands (LSE:IMB) from Neutral to Buy, arguing that investor concerns over the tobacco group’s earnings outlook have become overdone. The broker believes improving conditions in Australia, combined with the company’s valuation, create an attractive opportunity for investors.

    Price target increased

    Bank of America raised its price target for Imperial Brands to 3,200 pence from 2,675 pence, suggesting potential upside of around 17 percent from current trading levels.

    Shares in Imperial Brands rose 0.6 percent during Tuesday’s trading session in London, outperforming the wider FTSE 100 index, which declined 0.7 percent.

    Australia concerns seen as overestimated

    The broker said recent worries about earnings growth in the 2026 financial year have largely centred on developments in Australia, where changes to tobacco excise duties and tighter enforcement measures have affected industry sales volumes.

    However, Bank of America believes the market has placed too much emphasis on these challenges. The broker noted that Australia contributes only around 4 percent of Imperial Brands’ earnings before interest and tax and expects stronger pricing and market share gains to offset near-term weakness. It also forecasts that the Australian business will make a positive contribution to earnings again from the 2027 financial year.

    Pricing power and valuation support investment case

    Beyond Australia, the broker highlighted Imperial Brands’ continued pricing strength across its traditional tobacco portfolio, while next-generation products remain an additional source of growth.

    Bank of America also expects foreign exchange movements to become more supportive from the second half of 2027 if current currency trends continue.

    The broker concluded that Imperial Brands is trading on an attractive valuation compared with its peers despite delivering consistent earnings before interest and tax growth of between 3 percent and 5 percent. It believes this provides investors with an appealing entry point ahead of the company’s 2026 annual results later this year.