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  • European semiconductor shares retreat after Samsung triggers sector-wide selloff

    European semiconductor shares retreat after Samsung triggers sector-wide selloff

    European semiconductor stocks moved lower on Tuesday after Samsung Electronics (USOTC:SSNHZ) shares fell sharply despite the company delivering record preliminary earnings, prompting investors to reassess expectations for the artificial intelligence-driven rally in chipmakers.

    ASML (EU:ASML) declined 4.2% in Amsterdam by 07:42 GMT, while STMicroelectronics (BIT:STMMI) and Infineon (TG:IFX) each lost more than 4%. ASM International (EU:ASM) and BE Semiconductor (EU:BESI) dropped over 3%, and Soitec recorded losses of as much as 10.4%, mirroring the weakness seen in Asian markets.

    Samsung results fail to satisfy investors

    Samsung shares fell around 7% after the company released its preliminary second-quarter figures, while rival SK Hynix lost 6%, contributing to an almost 5% decline in South Korea’s KOSPI index.

    The technology group forecast second-quarter operating profit of 89.4 trillion won (US$58.44 billion), representing an almost 19-fold increase from a year earlier and exceeding the combined profit generated over the previous three years. The result also surpassed the LSEG SmartEstimate of 87.3 trillion won. Revenue is expected to increase by 129% to 171 trillion won.

    AI growth concerns remain in focus

    Despite the record figures, analysts suggested the market reaction reflected expectations that had already been incorporated into share prices, alongside concerns about how long exceptionally strong AI-related demand can continue.

    “Samsung’s strong earnings were widely expected and had largely been priced in after its shares rallied ahead of the results,” Albert Yong, managing partner at Petra Capital Management, said in comments reported by Reuters.

    He added that investors remain focused on “the sustainability of the AI boom and the risk of slower AI infrastructure spending by major U.S. technology firms.”

    Samsung’s preliminary results include one-off costs related to employee bonus provisions. Earlier this year, the company agreed to remove its cap limiting bonuses to 1,000% of base salary and earmarked 10.5% of operating profit for employee bonuses following several weeks of union-led protests seeking a larger share of company profits.

    Another factor weighing on sentiment has been the sharp rise in memory chip prices over the past year, raising questions about the durability of demand across the semiconductor industry.

    Samsung is expected to publish its full second-quarter results, including divisional performance, on 30 July.

  • Market Open: Shell Q2 Trading Update, Capita Pension Administration

    Market Open: Shell Q2 Trading Update, Capita Pension Administration

    FTSE 100 opens steady as Shell upgrades second-quarter trading outlook, Capita addresses pension concerns and Brent crude edges lower.

    Market Overview

    The FTSE 100 opened broadly unchanged at 10,651.30, while the Euronext 100 edged 0.07 per cent higher and Germany’s DAX slipped 0.21 per cent at the open. Overnight, the Nasdaq closed higher at 26,121.16 and the S&P 500 gained to 7,537.43 as investors balanced improving UK housing data, the start of the NATO summit and expectations for upcoming Federal Reserve policy signals.

    Commodity markets were mixed, with copper, gold, Brent crude and natural gas all trading lower at the open, while Bitcoin fell against sterling. Sterling was broadly steady against the major currencies as oil markets continued to weigh renewed Strait of Hormuz security concerns against Saudi price cuts and higher OPEC+ supply expectations.

    Market Numbers

    FTSE 100: Down (-0.00%), 10,651.30

    Euronext 100: Up (+0.07%), 1,935.63

    DAX: Down (-0.21%), 25,764.94

    NASDAQ: Up, 26,121.16

    S&P 500: Up, 7,537.43

    In the Headlines

    Trading Update – Shell (LSE:SHEL)

    Shell said second-quarter trading and refining performance is expected to be stronger than previously guided, signalling resilient earnings despite ongoing volatility across global energy markets. The update may support investor confidence ahead of the company’s full quarterly results.

    Pension Administration – Capita (LSE:CPI)

    Capita responded to concerns surrounding its administration of the Civil Service Pension Scheme, seeking to reassure stakeholders over service delivery and operational performance. The update is relevant as investors continue to monitor execution and contract quality across the outsourcing business.

    Currencies (vs GBP)

    USD: Down (-0.00%), $1.3394

    CHF: Up (+0.00%), Fr.1.0784

    EUR: Up (+0.00%), €1.1707

    JPY: Up (+0.00%), ¥217.113

    AUD: Down (-0.03%), $1.9259

    Bitcoin (BTC/GBP): Down, £47,131.58

    Commodities

    Copper: Down

    Gold: Down

    Brent Crude: Down

    Natural Gas: Down

  • FTSE 100 rises as UK house prices recover and investors monitor NATO summit

    FTSE 100 rises as UK house prices recover and investors monitor NATO summit

    The FTSE 100 traded higher on Tuesday, recovering from the previous session’s losses as investors welcomed an improvement in UK house prices while closely following developments at the NATO summit in Ankara and ongoing tensions in the Middle East.

    The UK’s benchmark index gained 0.25% after Monday’s 0.3% decline. Elsewhere in Europe, Germany’s DAX slipped 0.22%, while France’s CAC 40 advanced 0.58%. Sterling edged 0.07% lower against the US dollar to 1.3379.

    Fresh housing data showed the UK property market returned to growth in June, with the Lloyds House Price Index recording a 0.2% monthly increase. The average home price rose to £299,330 from £298,812 in May, while annual house price growth edged up to 0.6% from 0.5%. Northern Ireland remained the strongest-performing region, posting annual growth of 7.4%, whereas London recorded a 1.1% year-on-year decline, leaving the average property price at £534,831.

    Commenting on the market, Amanda Bryden, Head of Mortgages at Lloyds, said:

    “Mortgage rates have eased from their recent highs, offering some encouragement to those considering a move.”

    She added:

    “The outlook for house prices will depend largely on inflation continuing to ease and household confidence gradually improving.”

    Meanwhile, geopolitical risks remained firmly in focus after a tanker caught fire in the Strait of Hormuz following a reported projectile strike, marking the latest disruption to commercial shipping since the outbreak of the conflict between the United States and Iran.

    Diplomatic negotiations between Washington and Tehran remained suspended during the funeral period for Iran’s Supreme Leader, Ali Khamenei. Speaking at the White House before departing for Ankara, US President Donald Trump said the United States would prevail in the conflict “one way or the other,” adding that Washington could destroy Iran’s electricity infrastructure in the “small part of an afternoon.”

    Attention also turned to the two-day NATO summit in Ankara, where alliance leaders are expected to discuss plans to implement last year’s commitment to increase defence spending from 2% to 3.5% of GDP by 2035. The meeting coincides with a major defence industry exhibition aimed at securing multi-billion-dollar procurement agreements, while President Trump is also expected to hold bilateral talks with the presidents of Ukraine and Syria.

    In commodity markets, Brent crude climbed 1.28% to $72.91 a barrel and US West Texas Intermediate crude gained 1.20% to $69.37. Gold prices moved lower, with futures falling 0.63% to $4,141.31 an ounce and spot gold declining 0.84% to $4,129.42.

    UK corporate highlights

    Shell (LSE:SHEL) increased its guidance for second-quarter integrated gas production, although it cautioned that output will remain well below first-quarter levels following the shutdown of its Pearl GTL facility in Qatar after the Ras Laffan attack.

    HSBC (LSE:HSBA) is scaling back higher-risk private credit lending in favour of lower-risk funds, according to a Financial Times report, as concerns grow over underwriting standards in the private credit market.

  • Rentokil shares advance after Goldman Sachs upgrades stock to Buy (RTO)

    Rentokil shares advance after Goldman Sachs upgrades stock to Buy (RTO)

    Shares of Rentokil Initial PLC (LSE:RTO) moved higher on Tuesday after Goldman Sachs upgraded the pest control specialist to Buy from Neutral, citing improving performance in North America and the potential for stronger long-term growth.

    Rentokil’s shares rose 2.1% to 453.5 pence in London trading, outperforming a broadly flat FTSE 100.

    Goldman Sachs also increased its 12-month price target to 590 pence from 515 pence, indicating around 33% upside from the previous closing price. The investment bank said improving operational execution in North America, Rentokil’s largest market, should support a gradual recovery in organic growth through 2027 following several years of integration work after the acquisition of Terminix.

    According to Goldman Sachs, organic growth in North America has strengthened since the third quarter of 2025. The broker believes continued investment in branch expansion, local sales performance, customer retention initiatives and marketing will help drive further improvement. It forecasts the business will return to mid-single-digit organic growth by 2027, reducing the performance gap with competitor Rollins.

    The broker also noted that the completion of the most significant stages of the Terminix integration has reduced operational disruption, allowing management to concentrate on improving execution while gradually expanding profit margins. Goldman Sachs expects the group’s EBITA margin to increase to 17.1% by 2027, supported by stronger revenue growth and ongoing efficiency savings.

    In addition, Goldman Sachs slightly increased its earnings forecasts for 2027 and 2028, arguing that the recent weakness in Rentokil’s share price provides an attractive entry point for investors. The broker also expects continued deleveraging to strengthen the company’s ability to pursue further bolt-on acquisitions in the highly fragmented global pest control market.

    More about Rentokil Initial PLC

    Rentokil Initial PLC is a global provider of pest control, hygiene and workplace wellbeing services, operating across North America, Europe, Asia Pacific and other international markets. The company serves residential, commercial and industrial customers through a broad network of local operations and has significantly expanded its North American presence following the acquisition of Terminix.

    Its strategy focuses on combining organic growth with targeted acquisitions while improving operational efficiency and customer service to strengthen its position in the global pest control industry.

  • Porvair shares rise after Deutsche Bank starts coverage with Buy rating (PRV)

    Porvair shares rise after Deutsche Bank starts coverage with Buy rating (PRV)

    Shares in Porvair PLC (LSE:PRV) moved higher on Tuesday after Deutsche Bank initiated coverage of the industrial technology group with a Buy recommendation, citing the company’s resilient business model, recurring revenue streams and long-term earnings growth potential.

    Porvair’s shares gained almost 2% to 834 pence in London trading, outperforming the FTSE 100, which was up around 0.3%.

    Deutsche Bank assigned the stock a price target of 1,050 pence, implying significant upside from Monday’s closing price of 818 pence. The broker described Porvair as a high-quality industrial business specialising in filtration, laboratory equipment and metal melt technologies, serving a broad range of mission-critical applications across multiple industries.

    According to Deutsche Bank, many of the company’s products are integrated into customers’ manufacturing and testing processes, generating recurring demand through consumable sales, maintenance requirements and replacement cycles. The broker also highlighted strict regulatory standards and product certification requirements as key barriers to entry that help support long-term recurring revenue.

    The research note added that Porvair’s decentralised operating structure and well-established acquisition strategy have enabled the company to expand its technology portfolio while consistently growing earnings through disciplined acquisitions.

    Deutsche Bank noted that Porvair has delivered compound annual earnings per share growth of around 15% over the past 15 years, significantly outperforming the wider UK engineering sector. The only year in which earnings declined was during the COVID-19 pandemic.

    Looking ahead, the broker expects Porvair to continue delivering long-term earnings growth, supported by resilient end markets, disciplined margin management and further acquisition opportunities, reinforcing its positive investment case within the European industrial sector.

    More about Porvair PLC

    Porvair PLC is a UK-based specialist engineering company focused on filtration, laboratory and molten metal technologies. Its products are used across a wide range of industries, including aerospace, environmental services, healthcare, energy and industrial manufacturing, where high-performance filtration and testing solutions are essential.

    The company has built its business through a combination of organic growth and strategic acquisitions, creating a diversified portfolio of specialist technologies with a strong emphasis on recurring revenue and high-value industrial applications.

  • Victrex shares jump as strong third-quarter growth supports full-year outlook (VCT)

    Victrex shares jump as strong third-quarter growth supports full-year outlook (VCT)

    Victrex (LSE:VCT) shares climbed more than 15% on Tuesday after the high-performance polymer manufacturer reported stronger-than-expected third-quarter revenue growth and reiterated its full-year profit guidance.

    The UK-based group posted third-quarter revenue of £84.5 million, an 18% increase from a year earlier, as sales volumes rose 17%. Growth was led by continued strength in the aerospace and electronics sectors, while demand in the medical business showed signs of recovering following a weaker period.

    The shares rose 15.4% to 671.40 pence, their highest level since early March, as investors welcomed the trading update.

    Commenting on the results, analysts at Jefferies said:

    “3Q was clearly strong, with some help from a weaker comp for Aerospace—we note we have in 6% revenue growth for 2H26.”

    Victrex also reaffirmed its guidance for underlying pre-tax profit of between £42 million and £44 million for the full financial year, with the Board saying the outlook reflects confidence in the company’s medium-term earnings prospects.

    The business continues to implement its profit improvement programme, which includes reducing headcount by around 10% and delivering annualised cost savings of at least £10 million by the 2027 financial year. Management expects the first benefits from these initiatives to begin emerging during the fourth quarter.

    Looking ahead, Victrex said it anticipates initial savings from the Profit Improvement Plan in the final quarter of the financial year but remains “mindful of normal seasonality and wider macroeconomic conditions including the potential implications for global demand and energy costs.”

    More about Victrex plc

    Victrex plc is a UK-based manufacturer of high-performance polymer solutions, specialising in PEEK-based materials used across aerospace, automotive, electronics, energy, industrial and medical markets. Its advanced polymers are designed for demanding applications where strength, durability and lightweight performance are essential, supporting customers across a wide range of global industries.

  • Young’s reports strong start to the year as sporting events and sunshine lift trading (YNGA)

    Young’s reports strong start to the year as sporting events and sunshine lift trading (YNGA)

    Young’s (LSE:YNGA) has reported a strong opening to its new financial year, with favourable weather and a packed summer sporting calendar helping to drive higher sales despite ongoing pressures across the hospitality sector.

    The London and south-east-focused pub and hotel operator said total revenue increased by 9.4% during the 14 weeks to 31 March compared with the same period last year. On a like-for-like basis, which excludes the contribution from newly acquired venues, sales rose by 5.5%.

    The company said trading was particularly strong over the late May bank holiday weekend, describing performance as “exceptional”, especially at pubs with outdoor gardens and riverside locations that benefited from the warm weather.

    Young’s also pointed to increased customer demand generated by the FIFA World Cup, with England’s progress in the tournament encouraging higher footfall. Extended licensing hours for later evening matches allowed a number of venues to remain open into the night for supporters. The Wimbledon Championships also contributed to trading, with the group operating several pubs close to the tournament.

    Chief executive Simon Dodd said the business had made a positive start to the financial year.

    “This was supported by favourable weather, a busy summer of sport, with England’s success in the World Cup so far, a welcome boost and contributions from our expanded estate, as we integrate the Cubitt House pubs.”

    Young’s recently completed the acquisition of eight gastropubs and pubs with rooms from Cubitt House London Pubs, further expanding its portfolio.

    Commenting on the outlook, Dodd added:

    “While the backdrop remains challenging, we are well-positioned and looking ahead to the rest of the year with confidence.”

    The wider hospitality sector continues to face rising operating costs, with businesses citing increases in the National Living Wage, higher employer National Insurance contributions, additional regulatory costs and renewed pressure from higher energy prices.

    The chief executive of rival pub operator Fuller’s recently criticised what he described as “government interference, additional taxes and regulations”, warning that rising costs “come with consequences” including pub closures and fewer employment opportunities.

    More about Young’s

    Young & Co.’s Brewery PLC is a premium pub, hotel and hospitality operator focused primarily on London and the south-east of England. The company owns and operates a portfolio of traditional pubs, gastropubs and boutique hotels, with a strategy centred on premium food, drink and accommodation offerings in high-quality locations. Recent acquisitions, including the Cubitt House estate, form part of Young’s long-term expansion strategy.

  • Keller upgrades 2026 expectations as record order book supports growth (KLR)

    Keller upgrades 2026 expectations as record order book supports growth (KLR)

    Keller Group plc (LSE:KLR) has raised its outlook for 2026 ahead of publishing its interim results, citing stronger-than-expected trading across the business, led by exceptional performance in North America. Demand for infrastructure and data centre projects in the United States and Canada has continued to accelerate, driving record activity levels and offsetting weaker conditions in the south Florida residential market.

    The group’s Europe and Middle East division also delivered a solid performance, with strong trading in Scandinavia, Central Europe and the Middle East compensating for softer markets in western Europe. In Asia Pacific, trading remained broadly in line with expectations as strong results from Austral balanced pricing pressures affecting the Australian foundations business. Supported by robust tendering activity and a record order book of approximately £1.9 billion, the Board now expects both full-year revenue and underlying operating profit for 2026 to come in materially ahead of current market forecasts, reflecting confidence in the group’s growth strategy and long-term prospects.

    Keller’s outlook continues to be supported by improving financial performance and an attractive valuation, with a relatively low price-to-earnings ratio. Recent management commentary has also highlighted strong free cash flow generation, a net cash balance sheet and enhanced returns to shareholders. Technical indicators remain positive, although elevated RSI and stochastic readings suggest the shares could be vulnerable to a short-term pullback after their recent gains.

    More about Keller Group plc

    Keller Group plc is the world’s largest geotechnical engineering contractor, specialising in advanced foundation engineering and ground improvement solutions for the global construction industry. The company employs around 10,000 people across five continents and completes approximately 5,500 projects each year, generating annual revenue of around £3 billion from infrastructure, commercial and large-scale construction developments.

    North America is Keller’s largest market, contributing around 60% of group revenue, with continued investment in infrastructure and data centre construction providing significant growth opportunities. The company’s diversified international operations and expertise in complex engineering projects underpin its long-term strategy for sustainable growth in geotechnical services.

  • Capita addresses concerns over Civil Service Pension Scheme administration (CPI)

    Capita addresses concerns over Civil Service Pension Scheme administration (CPI)

    Capita (LSE:CPI) has responded to criticism of its administration of the Civil Service Pension Scheme following a statement from the Paymaster General, acknowledging that service standards have fallen below expectations. The company said performance has been particularly disappointing in handling bereavement, retirement and pension quotation cases, and apologised to affected scheme members for the disruption and distress caused.

    The outsourcing group said it is working closely with the Cabinet Office to improve operations and resolve outstanding issues as quickly as possible. According to Capita, new processes and automation have already been introduced to help reduce the backlog and improve service delivery. The company is reviewing the implications of the ministerial statement and said it will provide a further market update if necessary. It also confirmed that a scheduled trading update later this week will outline progress against its wider strategic objectives.

    Capita’s outlook continues to be affected by weak financial performance, including losses during 2025, pressure on margins, inconsistent and negative free cash flow, and a highly leveraged balance sheet with limited equity. These factors are partly offset by positive technical indicators, with the shares trading above key moving averages and maintaining strong momentum, although overbought signals suggest there may be increased risk of a short-term pullback. Valuation remains challenging due to ongoing losses and the absence of a dividend.

    More about Capita plc

    Capita plc is a UK-listed outsourcing and business services company that provides technology-enabled services to organisations across the public and private sectors. Operating in eight countries, with a primary focus on the UK and Europe, the company helps clients manage complex operational processes while improving customer and citizen experiences.

    Its services span areas including government administration, customer management, digital transformation and business process outsourcing, supporting millions of people through essential public and commercial services.

  • Victrex keeps full-year outlook unchanged after strong third-quarter revenue growth (VCT)

    Victrex keeps full-year outlook unchanged after strong third-quarter revenue growth (VCT)

    Victrex (LSE:VCT) has maintained its full-year guidance after reporting an 18% increase in third-quarter revenue to £84.5 million, supported by a 17% rise in sales volumes. Demand from the aerospace and electronics sectors continued to drive growth, while conditions in the medical market showed signs of stabilisation. For the year to date, revenue has increased by 7% and volumes are up 10%, with the average selling price remaining stable at £68 per kilogram, reflecting continued strength across the company’s Sustainable Solutions markets.

    The company is continuing to implement its profit improvement programme, which includes reducing its workforce by around 10% and delivering annualised cost savings of at least £10 million by the 2027 financial year. Victrex expects the first benefits from these measures to begin flowing through during the fourth quarter. Net debt stood at £43 million following payment of the interim dividend, while the Board reaffirmed its guidance for underlying pre-tax profit of between £42 million and £44 million for the full year, highlighting confidence in the group’s medium-term earnings outlook.

    Victrex’s outlook continues to be supported by a strong balance sheet with relatively low levels of debt. However, this is partly offset by weaker recent operating performance and cash flow trends, while technical indicators remain broadly neutral. Valuation presents a mixed picture, combining an attractive dividend yield with negative earnings metrics.

    More about Victrex plc

    Victrex plc is a global manufacturer of high-performance polymer solutions, specialising in polyether ether ketone (PEEK)-based materials for a broad range of industries. Its products are supplied to customers in the automotive, aerospace, energy, industrial, electronics and medical sectors, where advanced polymer performance is critical.

    The company’s materials are used in applications ranging from smartphones and electric vehicles to aircraft components, energy infrastructure and medical devices. Victrex continues to focus on developing sustainable, high-performance material solutions that support innovation while delivering long-term value for customers and shareholders.