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Shares of British homebuilder Taylor Wimpey (LSE:TW.) dropped over 6% on Wednesday following a revision to its annual operating profit forecast, which was reduced by £20 million due to unexpected expenses linked to remediation work at a historic site.

The company now anticipates operating profits of £424 million for 2025, down from earlier market expectations of £444 million, after reporting an adjusted operating profit of £161 million for the first half of the year.

Despite the revised profit projection, Taylor Wimpey upheld its UK housing delivery forecast, expecting between 10,400 and 10,800 units excluding joint ventures, and reaffirmed its average selling price target of £340,000.

During the first six months, the company delivered 5,264 homes, accounting for 46% of the midpoint of its full-year target.

The average selling price in the UK declined 1.3% to £313,000, falling short of the prior estimate of £330,000. Taylor Wimpey attributed this decrease to delayed London deliveries pushed into the second half and a greater share of affordable housing in the mix.

Sales velocity has softened recently, with weekly sales per site dropping to 0.59 units for the four weeks ending July 27, marking a 7.8% decline compared to last year. This contrasts with a 4% rise year-on-year to 0.77 units per week seen in the January-April period.

As of July 27, the company’s order backlog rose 4.2% in value but contracted 2.8% in volume relative to the same timeframe last year. This reflects a deceleration from April, when backlog growth stood at 11.5% in value and 5.3% in volume.

Taylor Wimpey reported net cash reserves of £326 million in the first half and expects this to reach £350 million by year-end 2025. The firm approved land acquisitions totaling about 3,000 lots during this period and declared an interim dividend aligned with its dividend policy.

Additionally, the company boosted its fire safety provision by £222.2 million but clarified that cash outflows related to remediation efforts in 2025 would remain unchanged.

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.

European stock markets edged down modestly on Wednesday as investors processed a wave of corporate earnings and awaited critical regional growth figures alongside the wrap-up of the latest Federal Reserve meeting.

By 07:02 GMT, Germany’s DAX slipped 0.2%, France’s CAC 40 fell by 0.2%, and the UK’s FTSE 100 declined 0.4%.

Second-quarter earnings roundup

The recently announced trade deal between the U.S. and the European Union over the weekend has provided a boost to sentiment among European companies. However, uncertainty tied to the Trump administration’s unpredictable trade tactics has already influenced corporate profits in Q2.

Switzerland’s largest bank, UBS (NYSE:UBS), saw its second-quarter earnings more than double compared to last year, benefiting from heightened trading volumes amid turbulent markets.

HSBC (LSE:HSBA) posted a 27% drop in first-half profits, impacted by one-time charges linked to its investment in China’s Bank of Communications, though it also unveiled a new $3 billion share buyback program.

Adidas (TG:ADS) revealed that increased U.S. tariffs are expected to add about €200 million ($231 million) in costs during the second half of the year, noting the impact had already shaved “double-digit” millions of euros from its Q2 results.

Mercedes-Benz (TG:MBG) projected a 4% to 6% profit margin for its automotive division this year, down from its April forecast in the company’s first estimate of losses caused by the U.S. trade conflict.

Porsche (BIT:1PORS) revised downward its full-year profit forecast after reporting a €400 million ($462 million) tariff-related hit in the first half.

Luxury car maker Aston Martin (LSE:AML) lowered its profit expectations, citing “evolving and disruptive” U.S. tariffs and now anticipates adjusted operating profit will roughly break even.

France’s Danone (EU:BN) beat expectations with second-quarter sales growth, fueled by strong demand for infant formula and medical nutrition in China, which offset weaker performance in the competitive U.S. coffee creamer market.

French luxury brand Hermès (EU:RMS) posted a 9% increase in quarterly sales, reflecting continued strong demand for its iconic Birkin handbags among wealthy buyers.

Mining giant Rio Tinto (LSE:RIO) reported its smallest first-half underlying profit in five years, as soft iron ore prices driven by oversupply and weaker Chinese demand offset gains from its copper segment.

French IT consultancy Capgemini (EU:CAP) narrowed its full-year outlook, expressing caution amid a slowdown in Q2 demand.

Investors will also keep a close watch on major U.S. tech earnings, with Microsoft (NASDAQ:MSFT) and Meta (NASDAQ:META) set to release their results after markets close Wednesday.

Eurozone growth data in spotlight

Economically, the key focus in Europe is the preliminary estimate of second-quarter GDP growth for the eurozone, as markets look for clues on the European Central Bank’s future rate moves.

Earlier Wednesday, data showed France’s economy expanded by 0.3% in Q2, surpassing forecasts thanks to a rebound in household spending, strengthening the eurozone’s second-largest economy.

Meanwhile, German retail sales rose 1.0% in June compared to the previous month, beating expectations ahead of the release of Germany’s Q2 GDP figures.

Last week, the ECB kept its main interest rate steady at 2%, pausing after a year of easing to await greater clarity on Europe’s trade ties with the U.S.

Across the Atlantic, the Federal Reserve is expected to keep rates unchanged as its policy meeting concludes later today.

Oil prices steady amid Russia sanctions watch

Oil markets paused on Wednesday after sharp gains the previous day, as traders awaited developments on potential new sanctions against Russia aimed at pressuring an end to the Ukraine conflict.

At 03:02 ET, Brent crude futures ticked up 0.1% to $71.77 a barrel, with U.S. West Texas Intermediate crude futures also rising 0.1% to $69.29 a barrel.

Both benchmarks had closed Tuesday at their highest levels since June 20, jumping over 3% following President Trump’s announcement that he would impose additional sanctions on Russia if progress toward ending the war was not made within 10 to 12 days, shortening the earlier 50-day deadline.

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 edged slightly higher Wednesday as investors braced for a series of significant events, including the Federal Reserve’s upcoming interest rate announcement, key economic reports, and earnings releases from leading tech giants. The Fed is widely expected to hold rates steady despite growing pressure from President Donald Trump to lower borrowing costs swiftly. Meanwhile, investors are keenly watching earnings reports from two “Magnificent Seven” tech leaders, Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT), with particular attention on their AI development plans.

Futures show mild gains

By early Wednesday, Dow futures held steady, S&P 500 futures gained about 0.1%, and Nasdaq 100 futures were up approximately 0.2%. This came after the major indexes dipped on Tuesday, with the S&P 500 and Nasdaq Composite retreating from record highs.

Several Dow components, including Merck (NYSE:MRK), UnitedHealth (NYSE:UNH), and Boeing (NYSE:BA), declined following their earnings reports. United Parcel Service (NYSE:UPS) notably dropped over 10% after once again withholding annual revenue and margin forecasts, fueling concerns about the impact of volatile U.S. trade policies on its performance.

Consumer goods company Procter & Gamble (NYSE:PG) slid after issuing lower-than-expected annual guidance, also warning of imminent price increases on select products to offset tariff effects. Appliance manufacturer Whirlpool (NYSE:WHR) cut its full-year outlook, sending shares down more than 13%, attributing some of the pressure to tariffs.

Trade talks yield limited progress

A new round of trade discussions between the U.S. and China in Sweden ended without any major breakthroughs after two days of talks. Still, both parties described the exchanges as constructive efforts to extend the current 90-day trade truce.

U.S. Treasury Secretary Scott Bessent noted after the meetings, “It’s just that we haven’t given the signoff.” Officials indicated that President Trump will ultimately decide whether to extend the truce, which expires on August 12. Without an extension, U.S. tariffs on China could jump back to triple-digit levels.

Trade negotiations have remained a central focus of the Trump administration, highlighted by a recent framework agreement with the European Union. On Tuesday, Trump stated that a deal with India was still pending, after Reuters reported India is preparing to accept tariffs between 20% and 25% on exports to the U.S.

Despite some agreements, many trade deals remain unresolved, with the August 1 deadline for Trump’s elevated “reciprocal” tariffs fast approaching.

Fed decision takes center stage

Attention now turns to the Federal Reserve, expected to keep interest rates unchanged at the end of its two-day meeting on Wednesday. Several Fed officials have suggested a more cautious stance on future rate changes, citing the need to assess the effects of Trump’s aggressive tariff policies on the broader economy.

Concerns persist that tariffs may drive inflation higher and hamper growth. So far, price increases have been modest, and economic activity remains relatively resilient, though there is apprehension that businesses will pass rising costs on to consumers.

The Fed has maintained borrowing costs between 4.25% and 4.5%, a policy defended publicly by Chair Jerome Powell but criticized by Trump, who has urged a swift rate cut to stimulate growth.

Economic data in focus

This week brings a stream of economic reports offering insights into the U.S. economy. On Wednesday, markets will digest the first estimate of second-quarter GDP, expected to show growth of 2.5% after a 0.5% contraction in Q1.

July’s private payrolls are projected to increase by 77,000 following a 33,000 decline in June, with ADP data serving as a lead indicator ahead of Friday’s crucial nonfarm payrolls report.

Investors have also noted rising consumer confidence this month, though job openings and hiring figures have decreased, hinting at some labor market cooling.

Tech earnings spotlight on Microsoft and Meta

Wednesday’s earnings calendar is highlighted by results from key members of the “Magnificent Seven” tech group.

Microsoft’s AI initiatives will receive close scrutiny, especially since partner OpenAI has recently relied on cloud services from competitors such as Google (NASDAQ:GOOGL), CoreWeave (NASDAQ:CRWV), and Oracle (NYSE:ORCL). OpenAI’s success has fueled growth in Microsoft’s Azure cloud business, making the company a major beneficiary of the AI boom.

Artificial intelligence will also be a key theme in Meta Platforms’ earnings. CEO Mark Zuckerberg has made massive AI investments a cornerstone of the company’s strategy, aiming to spend around $55 billion on new AI data centers over the last three quarters of 2025. How Meta plans to monetize these investments remains a critical focus for investors.

In addition to Microsoft and Meta, other earnings releases expected after the bell include chip designer Arm Holdings (NASDAQ:ARM) and trading platform Robinhood Markets (NASDAQ:HOOD).

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 stabilized during Wednesday’s Asian trading session, easing after sharp gains seen earlier in the week. Market attention shifted toward a surprising increase in U.S. crude stockpiles and the Federal Reserve’s imminent interest rate announcement.

Earlier this week, crude surged on news that the U.S. planned sanctions targeting key purchasers of Russian oil, aiming to pressure Moscow over the Ukraine conflict. Additionally, positive momentum came from improved U.S.-EU trade relations following a recently finalized agreement.

However, the upward trend lost some steam after industry figures revealed an unexpected rise in U.S. oil inventories. Market participants also exercised caution ahead of the Fed’s policy meeting scheduled for Wednesday, alongside expectations of several important economic data releases throughout the week.

September Brent crude futures edged up 0.2% to $72.68 per barrel, while West Texas Intermediate (WTI) futures increased slightly by 0.1% to $69.28 per barrel as of 20:53 ET (00:53 GMT).

US crude stocks rise unexpectedly — API data

The American Petroleum Institute reported on Tuesday evening that U.S. crude inventories expanded by roughly 1.5 million barrels in the week ending July 25. This rise contrasted with forecasts predicting a 2.5 million barrel decline and reversed the modest drawdown seen the prior week.

The API figures often precede official government inventory reports due later Wednesday. An inventory build raises concerns about demand strength in the world’s largest oil consumer amid ongoing economic uncertainties.

A series of crucial U.S. economic indicators is expected this week, culminating with the Fed’s two-day meeting wrap-up on Wednesday, where interest rates are widely anticipated to remain steady.

Meanwhile, a robust U.S. dollar ahead of the Fed announcement put mild downward pressure on crude prices.

Friday’s calendar includes the all-important nonfarm payrolls report, a key gauge of labor market health. The same day also marks the deadline for President Trump’s steep trade tariffs, coinciding with Washington’s recent signing of limited trade agreements.

Asia eyes China PMIs and Bank of Japan decision

In Asia, attention turns to the purchasing managers’ index (PMI) data from China, the world’s top oil importer, due on Thursday. This release is expected to shed light on China’s economic outlook following the recent easing of trade tensions with the U.S.

The Bank of Japan is also scheduled to announce its interest rate decision on Thursday, with expectations favoring no change amid uncertainty surrounding trade developments and Japan’s political leadership.

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 remained mostly flat during Wednesday’s Asian trading session as investors navigated ongoing uncertainty over U.S. trade relations and awaited the Federal Reserve’s policy decision expected later in the day.

Spot gold dipped slightly by 0.1% to $3,323.66 per ounce, while gold futures also edged down 0.1% to $3,378.62 per ounce as of 02:18 ET (06:18 GMT).

The metal had recorded modest gains in the previous session, buoyed by concerns around trade tensions ahead of the August 1 tariff deadline set by President Donald Trump.

However, gold has softened over recent weeks, as progress in U.S. trade negotiations has dampened demand for traditional safe-haven assets.

Gold pressured by trade developments and a robust dollar

Last weekend, a U.S.-EU trade framework was announced, reducing tariffs on most European goods to 15%, down from the originally threatened 30%. This easing of trade tensions has lessened fears of an intensifying trade war but has simultaneously strengthened the U.S. dollar.

A firmer dollar tends to weigh on gold prices by increasing the metal’s cost for buyers using other currencies. The Dollar Index maintained its strength on Wednesday following notable gains earlier this week.

Despite some trade progress, markets remain cautious ahead of the August 1 tariff deadline. This uncertainty limits broad market optimism but continues to support gold’s appeal as a haven, albeit mildly.

Analysts noted that trade deals linked to tariffs usually favor the dollar, reducing gold’s attractiveness as risk appetite improves.

Precious metals dip ahead of Fed decision

Investor attention is focused on the conclusion of the Federal Reserve’s two-day policy meeting on Wednesday, where interest rates are expected to be held steady within the 4.25%–4.50% range.

Market participants will closely examine the Fed’s commentary for clues about possible rate changes later this year, with some speculating a rate cut in September.

In addition, a wave of U.S. economic data is scheduled for release this week, including PCE inflation figures and the monthly jobs report, which will further influence market sentiment.

Meanwhile, platinum futures declined 0.3% to $1,415.05 per ounce, and silver futures fell 0.4% to $38.15 an ounce.

Copper prices also retreated, with benchmark copper futures on the London Metal Exchange dropping 0.3% to $9,781.45 per ton, and U.S. copper futures down 0.5% to $5.64 per pound.

This week, U.S. copper prices were hit by sharp declines after Chile’s finance minister announced the country would seek an exemption from the planned U.S. tariff on copper imports.

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 edged down modestly on Wednesday, retreating from earlier gains recorded this week ahead of the Federal Reserve’s upcoming policy decision. Meanwhile, the euro is poised to record its first monthly loss of 2025.

At 03:00 ET (08:00 GMT), the Dollar Index, which measures the greenback against six major currencies, slipped 0.1% to 98.542. The index remains close to a one-month peak and is on track for its first monthly advance this year.

Fed’s Policy Meeting Nears Conclusion

The dollar has enjoyed strong momentum this month, supported by the U.S.-EU trade agreement, strategic positioning shifts, and month-end market flows. Yet, analysts at ING caution, “these factors should start to fade now, shifting all the attention to data and the Fed.” They add, “Before diving into the U.S. calendar, it’s worth noting that the positioning squeeze means the dollar is in a less oversold position and therefore faces more balanced risks.”

The Federal Reserve wraps up its two-day meeting later Wednesday. While interest rates are widely expected to remain steady, investors will closely scrutinize Chair Jerome Powell’s remarks for clues on future policy direction — especially amid persistent pressure from U.S. President Donald Trump for rate cuts.

Data released Tuesday revealed declines in U.S. job openings and hiring for June, suggesting a cooling labor market ahead of the critical July jobs report due Friday. Later Wednesday, markets will digest private payrolls figures for July and the flash estimate of Q2 GDP. Economists forecast a rebound with growth near 2.5% for April to June, following a 0.5% contraction in Q1.

Euro Faces Pressure for Monthly Loss

In European markets, EUR/USD inched up 0.1% to 1.1553, trading just above its one-month low from the previous session, and set for its first monthly decline in 2025. Although the euro has gained more than 11% this year, buoyed by dollar weakness tied to Trump’s unpredictable trade policies, it now faces some headwinds.

The flash Q2 growth estimate for the eurozone, due later Wednesday, will be closely watched for signals on the European Central Bank’s next moves. Earlier data showed the French economy expanded 0.3% in Q2, beating expectations as household spending surged. Conversely, Germany’s economy, the eurozone’s largest, contracted 0.1% over the same period.

Overall, the eurozone is expected to report flat growth for Q2 as the export boost seen in Q1 fades. ING analysts note, “The stark divergence in growth news between the US and Europe should underpin EUR/USD bearish momentum in our view, and there is a good chance of a break below 1.150.”

GBP/USD climbed 0.1% to 1.3363, with sterling holding just above a two-month low.

BOJ Meeting in Focus

USD/JPY fell 0.4% to 147.87 after recent sharp gains, as attention turns to the Bank of Japan’s Thursday meeting. The BOJ is widely anticipated to keep rates unchanged and maintain a cautious stance on tightening amid economic and political uncertainties.

AUD/USD eased 0.1% to 0.6510 following slightly cooler-than-expected inflation figures for Q2. The data showed further easing in inflation from the previous quarter, with core inflation remaining within the Reserve Bank of Australia’s 2%-3% target range. June’s monthly CPI also dropped more than expected. Softer inflation pressures provide the RBA with additional room to cut rates, following its surprise decision to hold steady in July.

USD/CNY moved marginally lower to 7.1764, with Thursday’s PMI data expected to reflect some improvement after recent de-escalation in U.S.-China trade tensions.

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.

Rio Tinto plc (LSE:RIO) delivered resilient financial results for the first half of 2025, with copper equivalent production rising 6% year-on-year. Despite a 13% drop in iron ore prices, the company’s diversified asset base—particularly its aluminum and copper operations—helped drive an underlying EBITDA of $11.5 billion and operating cash flow of $6.9 billion.

The company declared an interim dividend of $2.4 billion and celebrated key project milestones, including accelerated shipments from the Simandou mine and the opening of the Western Range iron ore project. Rio Tinto remains focused on safety, decarbonization initiatives, and strengthening ties with Indigenous communities, all while maintaining a robust balance sheet to support future growth.

Outlook

Rio Tinto’s strong financial performance, positive technical indicators, and strategic corporate initiatives underpin a constructive outlook. Although valuation metrics and earnings call commentary highlight some challenges, the company’s diversified portfolio and growth strategy provide a solid foundation for continued success.

About Rio Tinto

Rio Tinto is a leading global mining group engaged in the discovery, extraction, and processing of mineral resources. Its operations span iron ore, aluminum, copper, and other key minerals, with a commitment to sustainable development and technological innovation.

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.

GlaxoSmithKline plc (LSE:GSK) reported robust financial results for Q2 2025, fueled by strong sales growth in its Specialty Medicines and Vaccines divisions, with total revenues reaching £8.0 billion. The company marked key advancements in its R&D pipeline, including new product approvals and continued progress in developing treatments for oncology and respiratory conditions.

Reflecting this momentum, GSK has upgraded its 2025 financial guidance, anticipating growth toward the upper range of its previous forecasts. The company also remains committed to enhancing shareholder value through dividends and an ongoing share buyback program.

Investment Outlook

Positive earnings call feedback and an attractive valuation support a favorable view of GSK’s shares. However, neutral technical indicators and concerns over financial leverage add a note of caution.

About GlaxoSmithKline

GlaxoSmithKline is a global pharmaceutical leader specializing in specialty medicines, vaccines, and general healthcare products. The company holds strong positions in respiratory, immunology, oncology, inflammation, and HIV treatment markets.

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.

Aberdeen Group PLC (LSE:ABDN) delivered solid half-year results for 2025, reflecting notable strides in its ongoing strategic transformation. The company reported an adjusted operating profit of £125 million alongside a 45% rise in IFRS profit before tax. The interactive investor division experienced record net inflows and a 25% increase in profits, while the Adviser segment is actively addressing net flow improvements despite lower profitability due to strategic pricing adjustments. The Investments division sustained steady profits driven by operational efficiencies.

Overall, Aberdeen remains well-positioned to achieve its 2026 goals, with promising growth prospects across its core businesses.

Investment Outlook

The company’s strong financial performance and positive technical indicators underpin an optimistic stock outlook. Confidence is further bolstered by a robust balance sheet and encouraging earnings call commentary. Nonetheless, valuation considerations and challenges in select business areas introduce some caution.

About Aberdeen Group

Aberdeen Group PLC is a UK-based wealth and investment firm specializing in investment management and advisory services. The company aims to establish itself as a leading player in the UK wealth sector, focusing on credit, specialist equities, and real assets.

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.