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Severn Trent Plc (LSE:SVT) has launched its AMP8 regulatory period on a strong note, delivering solid financial results in line with forecasts and anticipating £25 million in Outcome Delivery Incentives (ODIs) for fiscal year 2026. The company has achieved a 65% year-on-year reduction in storm overflow incidents and boosted its capital spending by 19% compared to the previous year. It now plans to invest between £1.7 billion and £1.9 billion in capital projects during FY26.

While Severn Trent benefits from healthy revenue expansion and improved operational efficiency, challenges remain. The firm’s high debt levels and negative free cash flow pose ongoing financial risks. Additionally, subdued market sentiment and elevated valuation metrics limit broader investor appeal, though recent strategic milestones suggest firm leadership conviction.

About Severn Trent

Severn Trent Plc is a key player in the utilities sector, specializing in water and wastewater management. The company is recognized for its commitment to enhancing water infrastructure and minimizing both leakage and storm-related overflows.

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. stocks ended at all-time highs Wednesday, led by a strong tech rally after Nvidia became the first semiconductor company to top a $4 trillion valuation. The surge helped markets shake off concerns over President Donald Trump’s latest tariff moves.

At the close, the Nasdaq 100 Futures jumped 0.95% to a record 20,611.34. The Dow Jones Industrial Average added 217 points (0.5%) and the S&P 500 gained 0.6%.

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Nvidia Hits $4 Trillion, Fuels AI-Driven Tech Rally

Nvidia (NASDAQ: NVDA) rose 2%, lifting its market value above $4 trillion and reaffirming its lead in AI chip dominance. The rally sparked broader gains in the tech sector.

“This is a historic moment,” said Wedbush analysts. “It reflects the AI Revolution entering its next phase, powered by Nvidia’s chips.”

Meta Platforms (NASDAQ: META) and other major tech names also traded higher.

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Fed Minutes: Rate Cuts Still Likely This Year, but Divisions Emerging

Minutes from the Fed’s June 17–18 meeting show most officials expect rate cuts later in the year, though opinions are beginning to diverge. Some policymakers favor cuts as early as July, while others see no need to ease policy just yet.

President Trump has been vocal in criticizing the Fed’s caution, again calling for lower rates and even for Chair Jerome Powell’s resignation. He recently cited a study claiming tariffs have not fueled inflation.

According to The Wall Street Journal, Trump’s adviser Kevin Hassett has emerged as a leading candidate to replace Powell, overtaking former Fed governor Kevin Warsh.

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Copper Becomes Latest Target in Trump’s Trade War

Markets started the week on shaky ground after Trump issued new tariff threats to major global partners. Although the effective date was pushed from July 9 to August 1, the president insisted no further delays are coming.

Trump also raised the possibility of a 50% tariff on imported copper, spotlighting his administration’s sector-specific trade strategy. Copper is vital to industries like electric vehicles, military, and infrastructure.

More tariffs—potentially on pharmaceuticals and semiconductors—may soon follow. Treasury Secretary Scott Bessent claimed tariffs have generated $100 billion so far in 2025, with a target of $300 billion by year-end.

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Goldman Sachs: Limited Upside for Stocks in the Near Term

Despite the recent surge, Goldman Sachs warned of limited near-term upside in equities due to stretched valuations and macroeconomic risks.

While neutral over the next three months, strategists led by Christian Mueller-Glissmann remain optimistic over the next year, citing long-term structural drivers, policy support, and strong shareholder returns.

Still, they caution: “In late-cycle phases, valuations tend to overshoot, and with weakening inflation trends abroad, the risk of a market pullback is now greater than that of a major rally.”

U.S. stock futures are signaling a modest rise at Wednesday’s market open, suggesting investors may push equities higher after a mostly flat and volatile session on Tuesday.

The cautious optimism on Wall Street appears linked to progress in trade talks between the United States and the European Union.

According to the Financial Times, EU negotiators are nearing an agreement with the U.S. that would establish tariffs higher than those currently applied to the U.K.

However, early trading could remain tentative due to renewed trade tensions, as President Donald Trump announced a hefty 50% tariff on copper imports and warned of even steeper tariffs on other sectors, including a possible 200% duty on pharmaceuticals.

In a post on Truth Social Tuesday night, Trump stated he will “be releasing a minimum of 7 Countries having to do with trade” this morning, with “an additional number of Countries being released in the afternoon.”

Attention also turns to the Federal Reserve, which will publish minutes from its latest policy meeting later today.

These minutes may provide further insights into the Fed’s interest rate outlook before its next gathering on July 29-30.

Currently, CME Group’s FedWatch Tool shows a 93.3% probability that the Fed will keep rates steady later this month.

After a sharp retreat on Monday, markets remained indecisive on Tuesday, oscillating around the unchanged line before closing mixed.

The Nasdaq inched up slightly by 5.95 points, less than 0.1%, to 20,418.46; meanwhile, the S&P 500 slipped 4.46 points (0.1%) to 6,225.52, and the Dow dropped 165.60 points (0.4%) to 44,240.76.

Investors held back from making bold moves amid ongoing uncertainty over Trump’s trade stance.

On Monday, Trump extended the suspension of reciprocal tariffs on U.S. trading partners through an executive order.

The order extends the 90-day tariff suspension, initially set to expire Wednesday, until August 1, citing “additional information and recommendations from various senior officials.”

Trump told reporters the new deadline is “not 100 percent firm,” but on Truth Social this morning he declared “No extensions will be granted,” adding to market uncertainty.

The deadline extension follows a series of letters Trump posted on Truth Social threatening higher tariffs on at least 14 countries.

With little major U.S. economic data expected before the Fed minutes release, some traders remained on the sidelines.

Despite the muted market tone, energy stocks showed notable strength, with the Philadelphia Oil Service Index surging 5.3% and the NYSE Arca Oil Index climbing 3.4%.

Semiconductor stocks also performed well, as the Philadelphia Semiconductor Index gained 1.8%.

Biotech and steel sectors demonstrated solid gains, while gold stocks dropped sharply, tracking the fall in precious metal prices.

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 equities largely gained ground on Wednesday amid growing anticipation over developments in the U.S.-EU trade negotiations.

Reports from the Financial Times suggest that the European Union and the United States are nearing a trade agreement, which would impose tariffs higher than those applied to the U.K.

Among major indices, the German DAX rose 1.2%, while France’s CAC 40 increased by 1.3%. The U.K.’s FTSE 100 also advanced modestly, up 0.2%.

In corporate updates, Galliford Try Holdings (LSE:GFRD) rallied following its projection that full-year 2025 revenue and adjusted pre-tax earnings will slightly surpass market expectations.

Energy services company Hunting Plc (LSE:HTG) surged after releasing robust half-year figures and announcing a $40 million share buyback initiative.

EssilorLuxottica (EU:EL) gained significantly after Meta Platforms (NASDAQ:META) acquired a minority stake in the global eyewear giant.

German manufacturer Renk (TG:R3NK) also climbed higher amid rumors it is exploring options for its civilian industrial business unit.

Conversely, shares of British advertising firm WPP (LSE:WPP) declined sharply after the company lowered its earnings outlook for both the first half and full fiscal year 2025.

Close Brothers (LSE:CBG) shares fell following the announcement of plans to downsize its premium finance division to reduce costs and sharpen its focus on business services.

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 higher early Wednesday, hovering near its strongest level in more than two weeks as global markets digested renewed trade tensions triggered by President Donald Trump’s tariff threats—including a potential 50% duty on copper imports.

As of 04:45 ET (08:45 GMT), the Dollar Index—which measures the greenback against six major currencies—was up 0.1% at 97.267, after hitting its highest level since June 25 during Tuesday’s session.

Greenback Buoyed by Safe-Haven Demand Ahead of Fed Minutes

The dollar gained ground after Trump signaled a more aggressive trade stance, announcing plans for new tariffs on copper and hinting that duties on semiconductors and pharmaceuticals could follow soon. In a social media post late Tuesday, the president said a list of countries facing new trade restrictions would be published Wednesday, with more names to come later in the day. He had already sent formal tariff letters to 14 countries—including Japan and South Korea—earlier this week.

While markets continue to monitor developments on trade, attention is also turning to the Federal Reserve, which is set to publish minutes from its June policy meeting later in the session. Investors are eager for clues about the Fed’s next steps on interest rates.

At the June meeting, policymakers left the benchmark rate unchanged in a range of 4.25%–4.50%, emphasizing caution amid growing uncertainty around how tariffs may impact the broader U.S. economy.

According to analysts at ING, “The consensus expectation is probably that two members, Bowman and Waller, will have flagged their dissent at the meeting before delivering dovish comments to the media a few days later. But if the minutes show a greater dovish front, then the dollar could take a hit as the bar for data to justify a summer cut would be lower.”

Euro Slides as Trade Uncertainty Looms

The euro slipped against the dollar, with EUR/USD falling 0.2% to 1.1703. The single currency came under pressure after Trump suggested a formal tariff notice targeting the European Union was imminent, adding tension to ongoing transatlantic trade talks.

ING strategists noted, “Tariffs on the EU would mark an important escalation that can also harm the dollar, offsetting the hit on the euro. Anyway, the market’s baseline will probably remain that a EU-US deal should be agreed by the 1 August deadline, and EUR/USD may not drift far from the 1.16-1.18 area unless U.S. data surprises in either direction.”

Sterling Rises on Trade Deal Advantage

The British pound saw modest gains, with GBP/USD up 0.2% to 1.3595. The U.K.’s existing trade agreement with the Trump administration has insulated it somewhat from the current tariff headlines, providing a slight lift to sterling.

Asian Currencies Mixed as CPI Data Hits

In Asia, the Japanese yen weakened slightly, with USD/JPY up 0.1% to 146.70, while the Chinese yuan also edged lower, with USD/CNY gaining 0.1% to 7.1813. China’s June consumer price index showed a modest rise, buoyed by government subsidies and easing trade concerns, which helped sustain consumer activity.

Meanwhile, the Australian dollar held its ground after a sharp rally on Tuesday, trading 0.1% higher. The Reserve Bank of Australia unexpectedly left interest rates unchanged, giving the currency a short-term boost.

The New Zealand dollar (NZD/USD) also moved 0.1% higher to 0.6002 after the Reserve Bank of New Zealand kept its benchmark rate steady, though officials suggested they could cut rates if inflation continues to trend lower.

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.

Tesco PLC (LSE:TSCO) revealed plans on Wednesday for a significant multi-million-pound investment to bolster its nationwide retail network.

The UK’s leading grocery retailer is set to construct a new, state-of-the-art distribution centre at DP World London Gateway, with operations slated to begin in 2029.

This initiative forms part of Tesco’s long-term strategy to scale up its logistics infrastructure in line with its growing number of stores throughout the UK.

The planned facility is designed to enhance the supermarket’s supply chain efficiency and support its ambitions for sustained expansion in the years ahead.

Tesco’s latest move underscores its commitment to modernizing its distribution framework and ensuring it remains resilient and adaptable well into the future.

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

Shares in Antofagasta PLC (LSE: ANTO) dipped sharply as markets reacted to President Trump’s surprise proposal of a 50% tariff on copper imports.

Despite a surge in U.S. copper futures—fueled by a rush to front-load shipments ahead of the potential levies—Antofagasta’s stock dropped as much as 3%. The Chilean miner, which exports significant volumes of copper to the U.S., faces heightened uncertainty under the proposed trade measure.

The tariff threat, aimed at boosting domestic production, has triggered volatility across global copper markets. While New York copper prices jumped to a strong premium over London benchmarks, analysts warned the move could dent American demand and disrupt international supply chains.

For foreign producers like Antofagasta, the risk is twofold: potential loss of market share and pressure to cut prices, which could erode margins despite the current price rally.

Investors reacted swiftly to the policy risk, sending Antofagasta shares down 44p to 1,874.25p amid broader market unease.

Disclaimer:
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.