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QinetiQ (LSE:QQ.) saw its stock rise over 2% on Thursday after the defense technology company reiterated its financial guidance for fiscal year 2026 in its first-quarter trading update, despite offering few new specifics on revenue visibility.

The firm upheld its previous forecast, which includes around 3% organic revenue growth, an operating margin near 11%, and earnings per share growth ranging from 15% to 20%. Strong cash conversion is also expected to continue throughout the year.

Management noted that the fiscal year has begun in line with expectations, starting with 75% revenue coverage. However, the update did not specify whether this figure had changed.

For the six-month period ending September, QinetiQ anticipates revenue will make up 46% to 48% of its annual total. The company expects its EBITA margin for the half to be close to 10%, pointing to EBITA of roughly £95 million—short of the £105 million consensus estimate, which suggests stronger second-half performance will be required to hit full-year goals.

In its U.K. defense operations, QinetiQ confirmed a five-year extension to its Long Term Partnering Agreement valued at £1.5 billion, a deal previously referenced in its annual results.

Additionally, in the U.K. intelligence sector, the company secured new contracts worth up to £110 million to deliver operational support and training services to the Ministry of Defence. These orders compare to projections of £198 million in H1 revenue and £388 million in total bookings for FY25 in that segment.

Revenue growth in the Europe, Middle East, and Africa (EMEA) services division continued to be underpinned by program execution, QinetiQ said.

In the United States, the group reported ongoing progress in its operational restructuring, with activities centered around naval systems, advanced sensor solutions, space and missile defense support, and persistent surveillance platforms.

Recent U.S. contracts include a $41 million sensor integration award for the U.S. Army, a $49.9 million IDIQ (indefinite delivery/indefinite quantity) agreement for sensor data handling, and annual funding under the Strategic Capabilities Office framework.

Commenting on the update, analysts at Jefferies noted that while the report introduced little fresh information, QinetiQ’s performance appeared broadly in line with market expectations. The £110 million in U.K. intelligence contracts was seen as a strong result within the company’s existing projections.

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.

RS Group PLC (LSE:RS1) issued a trading update Thursday ahead of its annual general meeting, highlighting continued solid operational progress while reaffirming its full-year outlook.

Despite this, the company’s shares fell 1.5% in London trading as of 08:35 GMT.

For the first quarter ending June 30, 2025, the company reported that performance in the EMEA region was affected by weaker PMI readings, whereas activity in the Americas and Asia Pacific remained more robust.

On a like-for-like basis, revenue decreased 2% year-on-year. However, RS Group emphasized that when removing temporary impacts from ongoing operational improvements—such as the digital platform upgrade in the Americas and the consolidation of a Distrelec distribution center in EMEA—trading was broadly stable.

Stifel analysts described this as “a solid performance in a volatile macro backdrop from 1 April to 30 June given the evolving global tariff environment.”

They kept their Buy rating on RS Group, highlighting valuation appeal as the stock trades at roughly a 20% discount to its 10-year EV/EBITDA average.

The analysts added, “We see upside from stabilising (then improving) trading trends and delivery against the strategic objectives set out in the September 2024 CMD.”

Looking forward, RS Group remains committed to enhancing its product offering, growing market share, and boosting operational efficiency.

The company stated, “We are confident that this will generate sustainable value and stronger returns as markets recover, in line with our medium-term financial targets.”

Following the update, Morgan Stanley analysts noted they “don’t expect consensus to move today.”

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.

Ashtead Technology Holdings plc (LSE:AT.) saw its stock climb more than 2% on Thursday after issuing a first-half 2025 trading update that highlighted stronger margins, helping ease concerns over softer-than-expected revenue and a trimmed outlook for the remainder of the year.

The subsea services and equipment rental specialist reported preliminary revenues of around £99 million for the first half, representing a 23% year-over-year increase but falling short of both market consensus and RBC Capital Markets’ projection of £110 million. According to Stifel, both revenue and EBITA came in roughly 10% below its estimates.

Despite the top-line shortfall, adjusted EBITA margins expanded to 27.3%, translating into approximately £27 million in EBITDA. The margin improvement was driven by a more favorable revenue mix and cost benefits arising from the acquisitions of Seatronics and J2.

Cash generation remained solid and aligned with internal expectations, while net debt leverage on a pro forma basis was 1.6x at the end of June, in line with prior guidance.

Looking ahead to the second half of 2025—a typically stronger period for the group—Ashtead Technology is forecasting high single-digit percentage growth in revenue. However, this updated guidance is around 8% below current consensus expectations. The company attributed the softer outlook to persistent geopolitical uncertainty and tariff-related pressures affecting demand.

Management now anticipates full-year 2025 adjusted EBITA to fall slightly below earlier projections, though the forecast for adjusted profit before tax remains unchanged, bolstered by lower interest expenses.

Ashtead also noted a strategic pivot toward higher-margin rental business and a planned scale-back of lower-yielding cross-hire operations.

In addition, the company reiterated its intention to move its listing to the Main Market of the London Stock Exchange in 2025, with further details to follow later in 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.

U.S. stock futures showed little movement Thursday following a turbulent session in which markets reacted sharply to rumors that President Donald Trump intended to remove Federal Reserve Chair Jerome Powell. Trump later denied these reports but left the door open to a possible future dismissal. Meanwhile, a survey of U.S. companies revealed a pickup in economic activity, even as uncertainties related to tariffs continue to cloud the broader outlook.

Futures hold steady

As traders awaited a fresh wave of corporate earnings, U.S. stock futures were mostly flat on Thursday. By 03:30 ET, Dow and S&P 500 futures were essentially unchanged, while Nasdaq 100 futures edged up by 28 points, or about 0.1%.

The major indexes ended the day higher after a volatile trading session. Shares initially dropped, the dollar weakened, and gold surged following reports suggesting Trump might dismiss Powell. However, markets rebounded after Trump stated he had no plans to fire the Fed Chair.

“For less than an hour yesterday, it looked as if Trump was about to remove […] Powell,” ING analysts commented in a client note. “After yesterday’s scare, markets have probably built even more resistance to headlines on this topic.”

Investor sentiment was also supported by June’s producer price data, which showed no month-over-month change, easing some concerns sparked earlier in the week by reports of accelerating consumer inflation.

Trump denies plans to oust Powell

Much attention remains focused on Trump’s ongoing tensions with Powell. The Fed Chair has been a frequent target of Trump’s trade-related criticism, with the president faulting him for not acting swiftly to cut interest rates. Powell, citing uncertainty linked to Trump’s tariffs, has favored a cautious wait-and-see approach regarding future rate adjustments.

On Wednesday, Trump denied plans to remove Powell but stopped short of ruling out the possibility altogether. He said it was “highly unlikely” Powell would be dismissed over fraud allegations, referencing GOP complaints about the $2.5 billion renovation of the Fed’s Washington headquarters—a project defended by the Fed.

In an interview, Trump later said he would “love” to see Powell resign but acknowledged the decision ultimately rests with Powell himself. Powell, appointed by Trump in 2017, intends to complete his term, which expires in May 2026.

Beige Book shows growth amid tariff concerns

The Federal Reserve’s Beige Book report indicated that economic activity in the U.S. expanded in June and early July, though uncertainty remains due to the impact of Trump’s aggressive tariff policies.

The report, which compiles input from businesses across the country, showed that while recent weeks saw increased activity, companies remain “neutral to slightly pessimistic” about the broader economic outlook.

“Contacts in a wide range of industries expected cost pressures to remain elevated in the coming months, increasing the likelihood that consumer prices will start to rise more rapidly by late summer,” the Beige Book noted. It gathered feedback from contacts of each of the Fed’s 12 regional banks.

All districts reported seeing the effect of tariffs, often manifesting as price hikes, although some firms have benefited from the reshoring of overseas operations.

Netflix earnings in focus

Thursday will see a series of corporate earnings reports, with Netflix (NASDAQ:NFLX) grabbing particular attention after markets close.

Analysts at Vital Knowledge expect Netflix to deliver “very healthy results as its dominance” in streaming “expands,” but warn that near-term expectations may be “too frothy.”

Ahead of the opening bell, GE Aerospace (NYSE:GE), Pepsico (NASDAQ:PEP), Elevance Health (NYSE:ELV), and Cintas Corporation (NASDAQ:CTAS) are also scheduled to report their latest earnings.

According to Vital Knowledge, a recent streak of positive earnings and guidance has helped fuel optimism in equity markets.

TSMC posts record Q2 profit

Taiwan Semiconductor Manufacturing Co (NYSE:TSM) announced record second-quarter profits Thursday, beating market forecasts thanks to strong demand driven by artificial intelligence.

CEO C.C. Wei expressed confidence that AI-related demand will remain robust but urged caution about the fourth quarter of 2025 amid tariff-related uncertainties.

TSMC’s net income surged 60.7% to T$398.27 billion ($13.52 billion) for the quarter ending June 30, surpassing Reuters’ estimate of T$377.4 billion and equating to earnings per share of T$15.36.

Revenue jumped 38.6% to T$933.79 billion, propelled largely by AI-driven demand for the company’s advanced 3nm and 5nm wafer technologies—key components in cutting-edge AI processors.

These gains helped offset weaker revenue from smartphone and device chips, as well as negative currency effects.

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 declined modestly in Asian trading on Thursday, buoyed by a slight pickup in risk appetite after U.S. President Donald Trump minimized fears of an imminent dismissal of Federal Reserve Chair Jerome Powell.

Other metals also showed restrained movements, pressured by a firming dollar that held close to a three-week peak following persistent inflation data from June.

Still, demand for gold as a safe haven remained solid amid rising uncertainty surrounding Trump’s upcoming tariff measures, set to begin in just over two weeks. Platinum and silver continued to outperform gold for the most part.

Spot gold edged down 0.2% to $3,342.09 per ounce, while September gold futures slipped 0.3% to $3,348.40 by 00:49 ET (04:49 GMT).

Trump: firing Powell ‘highly unlikely’

On Wednesday, Trump stated it was “highly unlikely” that he would fire Fed Chair Powell, though he left open the possibility if evidence of fraud surfaced related to the Fed’s renovation project.

Concerns around Powell’s potential removal had escalated after Trump intensified his criticism of the Fed Chair, and several Republican allies called for Powell’s immediate ouster.

Trump has accused Powell of acting too slowly on cutting U.S. interest rates, urging swift action to avert economic harm. Meanwhile, Powell and other Fed officials have indicated rates are likely to stay steady until the effects of Trump’s tariffs on inflation become clearer.

Trump’s recent downplaying of his efforts against Powell helped lift market sentiment slightly, dampening some short-term gold demand and providing a boost to U.S. stocks.

Dollar steady as rate cut bets fade; focus shifts to retail and unemployment data

Markets widely anticipate the Fed to maintain current interest rates at its upcoming meeting, particularly after inflation figures released this week showed price pressures remained sticky in June.

This outlook supported the dollar, which hovered near three-week highs following steady gains over the last week.

Attention now turns to retail sales and jobless claims data expected later Thursday, which will offer fresh insights into the health of the U.S. economy.

Among metals, spot platinum inched up to $1,424.55 per ounce, with analysts at ANZ noting the metal’s close above $1,400 on Wednesday could signal further gains.

Spot silver rose 0.2% to $37.9945 per ounce.

Copper futures on the London Metal Exchange were steady at $9,629.75 per ton, while U.S. COMEX copper futures ticked up slightly to $5.5267 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.

The U.S. dollar rebounded on Thursday following the previous day’s slump, buoyed by remarks from President Donald Trump that eased concerns over a potential early dismissal of Federal Reserve Chair Jerome Powell.

By 04:40 ET (08:40 GMT), the Dollar Index, which measures the greenback against a basket of six major currencies, gained 0.3% to reach 98.405. This followed a break in its six-day winning streak, which had ended amid sharp losses in the prior session.

Powell’s Future Fuels Dollar Volatility

Wednesday saw a brief but sharp drop in the dollar after market speculation surged that Trump might remove Powell from his Fed role. However, the president later clarified he had no immediate plans to fire the Fed chief.

Trump remarked it was “highly unlikely” that Powell would be removed over allegations of fraud, responding to Republican concerns about the Fed’s $2.5 billion renovation costs for its Washington headquarters—an issue the Fed has defended vigorously.

Powell has frequently been targeted by Trump’s criticism related to trade policies, especially for not cutting interest rates more aggressively. A Trump-led removal of Powell would be unprecedented, as no sitting president has ever formally dismissed a Fed Chair.

“In that hour, we saw the reaction we would have expected: a steepening in the U.S. yield curve, and the dollar sharply lower,” ING analysts noted in their report.

“However, it never looked like markets fully priced in Powell’s exit yesterday afternoon. Pricing for a September Fed cut didn’t go beyond 20bp, and EUR/USD failed to get beyond 1.1720 even before Trump’s denial caused an unwinding of all market moves.”

Adding to the calmer tone, June producer prices showed no significant month-on-month change, helping to ease earlier concerns stirred by an accelerating consumer price report released earlier in the week.

Sterling Dips Amid Weak UK Jobs Data

In Europe, EUR/USD dropped 0.4% to 1.1699 ahead of the final eurozone consumer price index data for June, expected to confirm last month’s 2.0% annual inflation rate, up from 1.9%.

The European Central Bank hinted after its June meeting that interest rates would likely remain steady at its upcoming session. However, President Trump’s threat to impose a 30% tariff on EU imports complicates the economic outlook.

GBP/USD declined 0.3% to 1.3390 following UK data that revealed a sharper-than-expected rise in unemployment for May, alongside a slight slowdown in wage growth—factors that could encourage the Bank of England to cut rates again next month.

The unemployment rate climbed to 4.7% for the three months through May, the highest since June 2021, while wage growth excluding bonuses eased to 5.0% year-on-year, down from 5.3%.

Australian Dollar Weakens

Elsewhere, USD/JPY gained 0.5% to 148.64 as election polls suggested Prime Minister Shigeru Ishiba’s coalition may lose its majority in the upper house.

Meanwhile, AUD/USD dropped 1% to 0.6472, hitting a three-week low after job data for June showed much weaker-than-expected employment growth in Australia and a surprising uptick in unemployment, signaling slower hiring momentum.

The USD/CNY rate was mostly flat at 7.1798.

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.

Empyrean Energy PLC (LSE:EME) has finalized an important Gas Sales Agreement through its operator Conrad Asia Energy Ltd for the Mako Gas Field. The contract, inked with PT PLN Energi Primer Indonesia (PLN EPI)—a subsidiary of Indonesia’s state electricity provider—ensures that all natural gas output from the Mako field will be sold to PLN EPI until January 2037. Covering a total volume of 392 TBtu, the deal links gas pricing to the Indonesian Crude Price, aligning with rising domestic demand for natural gas within Indonesia. This agreement represents a strategic advancement for Empyrean and its partners, securing a consistent revenue stream and reinforcing their footprint in the Asian energy sector.

However, Empyrean Energy’s financial outlook remains challenging. The company continues to face significant losses and negative equity, with technical indicators showing a downward stock trend. Valuation metrics suggest elevated risk, compounded by ongoing negative earnings. Recent corporate moves to raise capital and pursue new strategies have yet to fully offset the substantial financial and operational hurdles, leaving the stock with a modest overall rating.

Company Overview

Empyrean Energy PLC operates as an oil and gas development firm with assets in Australia, Indonesia, and the United States. The company’s portfolio includes natural gas and oil exploration and production, with a notable focus on the Mako Gas Field in Indonesia.

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 climbed in Asian trading on Thursday, breaking a three-day downward trend after data from the U.S. showed a larger-than-expected drop in crude stockpiles, signaling tightening supply. However, investors remained cautious ahead of potential new U.S. tariff announcements.

By 21:35 ET (01:35 GMT), September Brent crude futures had risen 0.6% to $68.94 per barrel, while West Texas Intermediate (WTI) futures gained 0.8% to $66.92 per barrel.

Earlier this week, oil had declined by as much as 4% over three sessions after U.S. President Donald Trump paused immediate action against Russia, instead granting a 50-day deadline to end the conflict in Ukraine.

US crude inventories fall more than expected – EIA

According to the U.S. Energy Information Administration (EIA) report released Wednesday, crude oil stocks dropped by 3.9 million barrels to 422.2 million barrels for the week ending July 11, 2025. This drawdown exceeded analysts’ forecasts of a 1.8 million-barrel decline, reflecting tightening market conditions.

Refinery utilization remained robust, with roughly 93.9% of available refining capacity in operation. Despite the decline in crude stocks, gasoline inventories increased by 3.4 million barrels, and distillate fuel supplies rose by 4.2 million barrels.

Strong refinery throughput combined with increased imports helped tighten the domestic crude supply balance, supporting prices.

Investors weigh tariff risks amid trade tensions

President Trump announced on Wednesday plans to notify over 150 countries of new tariff rates as part of his ongoing trade policy. He told White House reporters that all affected nations would face the same tariffs, noting most are smaller economies with limited trade volume.

This follows Trump’s recent threat to impose a 30% tariff on imports from the European Union starting August 1, a move European officials deem unacceptable and potentially disruptive to trade between two of the world’s largest markets.

Reports indicate the European Commission is preparing to retaliate with tariffs on $84.1 billion (€72 billion) worth of U.S. goods if trade negotiations with Washington fail.

While some signs of easing in U.S.-China trade tensions emerged, investors remain cautious, concerned that tariff escalations could dampen oil demand and broader economic growth.

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.

Big Yellow Group (LSE:BYG) saw its stock increase by 2.4% on Thursday following the release of its first-quarter update, which showed higher occupancy rates and steady revenue growth.

The UK self-storage company reported a closing occupancy rate of 79.4%, up 0.7 percentage points from 78.7% at the end of March, though still 2.4 points below the June 2024 level.

Net closing rent reached £35.75 per square foot, marking a 5% year-on-year increase, while quarterly revenue grew by 3% compared to the same period last year.

Big Yellow has introduced cost-saving initiatives, including greater automation to reduce staffing levels and expenses without compromising customer service. The firm also benefits from investments in solar energy and energy efficiency, alongside lower property tax rates.

Store operating costs on a like-for-like basis remained unchanged from the previous year’s quarter, though the company expects a 2-3% rise for the full fiscal year. The group is positioned to gain from declining short-term interest rates due to its £223 million floating-rate debt, accounting for 54% of total borrowings.

CEO Jim Gibson commented, “We saw some improvement in demand through the quarter, which has continued into July, with improved yoy occupancy performance. Our customer base remains stable with move-outs lower than last year.”

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

EasyJet (LSE:EZJ) revealed a rise in third-quarter profits driven by increased passenger traffic and higher revenues, yet its shares dropped 7% amid worries that consensus forecasts may be trimmed.

The British budget airline announced a headline pretax profit (PBT) of £286 million ($383.3 million), marking a £50 million increase compared to the same quarter last year, matching analysts’ forecasts.

This improvement was buoyed by a 2.2% growth in passenger numbers, reaching 25.9 million, along with the advantageous timing of Easter, which boosted April’s results.

Overall revenue climbed 10.9% year-over-year to £2.92 billion, with passenger revenue rising 9.7% to £1.76 billion. The airline’s load factor slightly improved to 90.2%, up from 90% in the prior year.

EasyJet reaffirmed its expectation for steady profit growth in fiscal 2025 but highlighted challenges from increased fuel prices and recent strikes by French air traffic controllers.

Approximately 67% of its fourth-quarter capacity has already been booked, though the full-year outcome will hinge on late summer sales momentum.

The company confirmed its minimum pretax profit target of £235 million for the year and announced plans to reveal a new medium-term target later this year.

Jefferies analysts noted that EasyJet’s Q3 results were largely consistent with their projections, although they pointed out the lack of a definitive consensus benchmark.

They anticipate the stock will face pressure as full-year 2025 (FY25) earnings estimates are revised downward, predicting consensus to fall to around £665 million—“a c.5.5% cut to consensus”—due to the impact of French air traffic control strikes and rising fuel expenses.

The analysts also observed that EasyJet raised its second-half fuel CASK guidance to -7% from -8%, suggesting “some cost control within Q4 as well.”

“We see a re-rating opportunity as easyJet benefits from a growing package holiday business, fleet renewal and self-help opportunities through optimising winter trading and ancillaries,” Jefferies’ team wrote.

Meanwhile, RBC Capital Markets analysts echoed a similar view, highlighting a “~5-7% downside risk to FY25E consensus headline PBT.”

On a more optimistic note, RBC added that easyJet is “well positioned to exceed expectations in FY26E, given continued fuel tailwinds and scope for an increased contribution from easyJet’s own measures to increase profitability.”

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.