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European stock markets are trading higher on Wednesday, as investors respond positively to hopes of an upcoming Federal Reserve interest rate cut following recent disappointing U.S. labor data. Reduced trade tensions have also helped lift market sentiment.

In France, the market remains relatively steady after Sébastien Lecornu was named the country’s new Prime Minister.

Traders are now turning their attention to the European Central Bank’s policy announcement and the upcoming U.S. consumer price inflation data later this week.

The CAC 40 in France is up 0.7%, while the FTSE 100 in the U.K. has gained 0.2%, and Germany’s DAX is higher by 0.1%.

In the U.K., DCC plc (LSE:DCC) leads gains with a nearly 4% increase. Other risers include Haleon plc (LSE:HLN), Anglo American plc (LSE:AAL), Pershing Square Holdings Ltd (LSE:PSH), Prudential plc (LSE:PRU), BAE Systems plc (LSE:BA.), Centrica plc (LSE:CNA), Imperial Brands plc (LSE:IMB), Standard Chartered plc (LSE:STAN), HSBC Holdings plc (LSE:HSBA), Admiral Group plc (LSE:ADM), Polar Capital Technology Trust plc (LSE:PCT), and Fresnillo plc (LSE:FRES), all up between 1.5% and 3%.

Meanwhile, Associated British Foods plc (LSE:ABF) has dropped more than 11% after flagging slower sales at Primark in Europe, despite strong U.S. performance.

Other decliners in London include International Consolidated Airlines Group SA (LSE:IAG), down 2.7%, with JD Sports Fashion plc (LSE:JD.), Ashtead Group plc (LSE:AHT), Next plc (LSE:NXT), Persimmon plc (LSE:PSN), Segro plc (LSE:SGRO), EasyJet plc (LSE:EZJ), Kingfisher plc (LSE:KGF), Vodafone Group plc (LSE:VOD), Marks & Spencer Group plc (LSE:MKS), and Glencore plc (LSE:GLEN) all falling between 1% and 1.7%.

In Germany, Siemens Energy AG jumped nearly 3%, with Siemens Healthineers AG, Rheinmetall AG, Sartorius AG, and Deutsche Bank AG  climbing 1.5–1.8%.

On the downside, Daimler Truck Holding AG, Deutsche Telekom AG, Vonovia SE, Porsche Automobil Holding SE, Qiagen N.V., Bayer AG, and Munich Re AG lost 1–1.6%.

In France, Thales S.A. surged almost 4%, while EssilorLuxottica S.A. rose 2.75%, and Legrand S.A., Schneider Electric S.E., and Société Générale S.A. gained 2–2.3%.

Other notable risers include ArcelorMittal S.A., Crédit Agricole S.A., Bouygues S.A., Vinci S.A., and Veolia Environnement S.A., while Pernod Ricard S.A., STMicroelectronics N.V., L’Oréal S.A., Accor S.A., Carrefour S.A., Stellantis N.V., and Edenred S.A. recorded mixed losses ranging from moderate to steep declines.

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 indicated a positive open Wednesday as investors reacted to unexpectedly soft producer price data, signaling continued optimism for equities.

The Labor Department reported that the producer price index (PPI) for final demand fell 0.1% in August, following a revised 0.7% gain in July. Economists had anticipated a 0.3% increase after the initial 0.9% jump for the previous month.

Year-over-year, the PPI slowed to 2.6%, down from 3.1% in July, defying expectations that the rate would remain steady at 3.3%. The weaker-than-expected inflation data has strengthened the case for a quarter-point interest rate cut by the Federal Reserve next week.

Adding to the bullish sentiment, Oracle (NYSE:ORCL) shares soared 32% in pre-market trading, fueled by its outlook for cloud infrastructure revenue to rise from $10.3 billion in fiscal 2025 to $144 billion by 2030, despite slightly below-forecast first-quarter earnings.

“The jobs picture keeps deteriorating and while that should make it easier for the Fed to cut rates this fall, it could also throw some cold water on the recent rally,” said Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management.

He added, “Worse still, if the CPI shows a worsening trend of higher inflation on Thursday then the market will begin worrying about stagflation. The bull market has been extremely resilient this year, but we could be approaching an inflection point where it is tested again.”

Tuesday’s trading saw stocks mostly climb, with the Dow up 196.39 points (0.4%) to 45,711.34, the Nasdaq rising 80.79 points (0.4%) to 21,879.49, and the S&P 500 gaining 17.46 points (0.3%) to 6,512.61. Investors appeared encouraged by expectations of a Fed rate cut alongside ongoing strong corporate results.

The Labor Department also revised non-farm employment for the 12 months through March 2025 down by 911,000 jobs, highlighting a cooling labor market.

However, the gains were uneven across sectors. Housing stocks slid 2.9%, reflecting the Philadelphia Housing Sector Index’s drop, while airlines fell 2% on the NYSE Arca Airline Index. Steel and gold also declined, whereas banking and networking stocks recorded notable gains.

Investors now turn their attention to Thursday’s consumer price inflation report, which could shape the Fed’s next steps and influence whether the market rally can sustain its current momentum.

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.

Consumer spending in the United Kingdom rose 2.1% year-on-year during the four weeks ending August 29, according to data from Barclays U.K. Spend Trends released Wednesday.

Although this growth is slightly slower than the 2.5% increase seen in the four weeks ending July 4, it remains above the longer-term trend of roughly 1.5% growth.

Barclays noted that the rise in spending was primarily driven by older consumers, with online purchases outperforming in-store sales. Growth was stronger in discretionary goods and services than in non-discretionary items.

Among the tracked sectors, Digital Content, Home & Electronics, and Other Retail recorded the highest growth. Clothing retail maintained positive momentum with a 2.2% increase, while Fuel, Motoring (excluding Fuel), and Hardware & DIY categories showed declines.

Looking ahead, Barclays projects consumer spending to grow 1.7% year-on-year in the four weeks ending September 26, 2025, with discretionary categories expected to continue outperforming essentials.

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.

London’s blue-chip index posted modest gains on Wednesday, lifted by company earnings reports, while the pound extended its recent strength and broader European markets also traded in positive territory.

By 11:40 GMT, the FTSE 100 was up 0.2%, with sterling climbing 0.04% against the U.S. dollar to trade at 1.35. On the continent, the DAX in Germany added 0.03%, and France’s CAC 40 advanced 0.5%.

Stock movers: AB Foods slumps, Serica and Warpaint drop, Wickes and Anglo climb

Shares in Associated British Foods PLC (LSE:ABF) fell 10% after the group unveiled full-year results showing disappointing performance at Primark, alongside weaker margins in several divisions.

Primark’s sales for the year are expected to grow just 1%, with like-for-like revenue in the second half projected to fall about 2%. That includes a 2.4% decline in Q3 and an anticipated 2% slide in Q4, compared with analyst forecasts of a 1% drop for the half-year.

Elsewhere, Serica Energy PLC (LSE:SQZ) plunged more than 11% after cutting its 2025 production outlook.

In contrast, Wickes Group PLC (LSE:WIX) rose 3% after reporting adjusted pre-tax profit of £27.3 million for the first half of 2025, up 16.7% from the prior year. Revenue climbed 5.6% to £847.9 million, with like-for-like sales gaining 4.5%. The retailer reaffirmed its full-year guidance, saying it remains “comfortable with current consensus expectations” for adjusted profit before tax of £48.2 million despite higher expected costs later this year.

Warpaint London PLC (LSE:W7L) shed 18% after lowering its full-year outlook, even as first-half revenue rose 8%.

Meanwhile, Anglo American PLC (LSE:AAL) gained over 2%, boosted by optimism surrounding its merger with Teck Resources Ltd (NYSE:TECK). Berenberg also upgraded the miner’s rating to “hold” from “sell.”

FCA considers new rules for contactless payments

Separately, the Financial Conduct Authority opened a consultation on proposals that would let card issuers set their own contactless transaction limits. The regulator said the move could allow consumers to make higher-value purchases without needing a PIN and foster greater innovation in payments by replacing the current universal cap with flexible, customer-focused thresholds.

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.

ExxonMobil (NYSE:XOM) anticipates that the European Union will enter into multi-decade agreements to purchase U.S. natural gas, reinforcing the bloc’s broader commitment to American energy, according to a Financial Times report on Wednesday.

The EU pledged in July to acquire $750 billion worth of U.S. energy by 2028 under a comprehensive trade framework with Washington.

Peter Clarke, senior vice president of Exxon’s liquefied natural gas (LNG) division, told the Financial Times that Europe’s expanding LNG infrastructure makes it “logical” for the region to pursue long-term supply agreements.

He noted that approximately 80% of Exxon’s LNG sales are currently tied to similar multi-year contracts.

Describing Europe as “the most important market” for U.S. LNG exports, Clarke added that the next step for the continent will be “to figure out how it supports long-term contracting,” according to the report.

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 ticked slightly higher on Wednesday, stabilizing after recent losses as markets prepared for crucial inflation figures that could shape the Federal Reserve’s monetary policy path in the months ahead.

At 04:45 ET (08:45 GMT), the Dollar Index, which measures the greenback against six major currencies, was up 0.1% at 97.820, following a 0.3% gain on Tuesday. Still, the index has fallen around 10% so far in 2025, with volatile U.S. trade policies and expectations of interest rate cuts weighing on the dollar.

Dollar edges up amid geopolitical concerns

The currency has recovered modestly this week after a sharp selloff late last week, while geopolitical tensions resurfaced following Poland’s scrambling of national and NATO air defenses to intercept drones during a Russian attack on western Ukraine.

However, the dollar remains pressured after weak U.S. employment data. The Bureau of Labor Statistics recently acknowledged that it overestimated payrolls by a staggering 911,000 in the 12 months to March 2025, signaling a cooling labor market.

This makes a Federal Reserve rate cut next week almost certain, although this week’s inflation reports could influence the size and trajectory of any policy easing. U.S. producer price inflation is due Wednesday, followed by consumer price inflation on Thursday.

Traders are pricing in a 25-basis-point cut next week, with a 5% probability assigned to a larger 50-basis-point reduction.

“The prospect of the Fed cutting rates by 125-150bp over the next nine months can only support leverage and demand that asset managers remain fully invested to earn their fees. This is a benign, bearish environment for the dollar,” analysts at ING said in a note.

Euro under pressure from French politics

In Europe, the euro slid 0.2% to 1.1692 against the dollar, after a 0.5% drop in the previous session, following French President Emmanuel Macron’s appointment of loyalist Sébastien Lecornu as prime minister on Tuesday.

Lecornu’s nomination signals Macron’s intent to continue with a minority government while preserving his pro-business reform agenda, a stance that has contributed to ongoing political uncertainty this year. In an unusual move, Macron instructed Lecornu to consult all parliamentary forces to seek compromises on the budget and other policies before forming his cabinet.

“Uncertainty in French politics has seen the OAT:Bund 10-year government spread settle above 80bp. French 10-year government borrowing costs now match those of Italy,” ING added.

GBP/USD held steady at 1.3524.

“Next week’s Bank of England rate meeting should, in theory, keep sterling supported unless upcoming jobs and CPI releases very much surprise on the downside,” ING said.

Yuan and Asian currencies

USD/JPY rose 0.1% to 147.48, recovering after volatility linked to the abrupt resignation of Japanese Prime Minister Shigeru Ishiba. USD/CNY slipped 0.1% to 7.1217, remaining near recent highs after a series of strong fixings.

China’s CPI declined 0.4% in August, more than expected, reflecting weakening domestic demand and private consumption as government subsidies waned. Producer prices fell 2.8% as forecast, marking the 35th consecutive month of decline. Wednesday’s data reinforced the ongoing disinflationary trend, compounded by economic uncertainty and U.S. tariff pressures.

Commodity-linked currencies supported

AUD/USD gained 0.2% to 0.6602, with the Australian dollar benefiting from higher commodity prices. Oil climbed on renewed Middle East tensions, while copper prices advanced following the closure of a major mine in Indonesia, which could tighten global supply.

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 climbed Wednesday, supported by strong Wall Street gains overnight, as investors turned their attention to global inflation trends.

By 07:15 GMT, Germany’s DAX index rose 0.5%, France’s CAC 40 advanced 0.4%, and the U.K.’s FTSE 100 added 0.2%.

Inflation Data in Focus

Investor sentiment in Europe received a lift after all three major U.S. indices closed at record highs on Tuesday, fueled by expectations of a Federal Reserve interest rate cut next week. Markets have largely priced in some easing of U.S. monetary policy, but key inflation readings later Wednesday and Thursday could influence whether the Fed opts for the traditional 25-basis-point cut or a larger 50-bps reduction.

The latest U.S. producer price index is due later in the day, preceding Thursday’s more closely watched consumer price index release. Economists anticipate monthly gains of 0.3% across the board, which would push the annual headline CPI to 2.9%, with the core rate expected to remain at 3.1%.

Meanwhile, Chinese data showed consumer prices dropped more than expected in August, as government stimulus struggled to offset persistent deflation, while producer prices declined for a 35th consecutive month.

Political Developments in France

In France, President Emmanuel Macron appointed Sebastien Lecornu as the new prime minister on Tuesday, signaling his commitment to pursuing a minority government that preserves his pro-business reforms. In an unusual move, Macron asked Lecornu to hold discussions with all parliamentary parties to seek compromises on budget and policy matters before forming his cabinet.

French markets will face another test on Friday when Fitch Ratings reviews France’s AA- rating with a negative outlook. Moody’s downgraded the country last year after the previous government fell.

Economic Data Across Europe

Spanish industrial production increased 2.5% year-on-year in July, up from the revised 1.9% in June. Italy is expected to release similar data later Wednesday, with minimal monthly growth projected.

Corporate Highlights

Retailer Inditex reported weaker-than-expected Q2 sales but noted that growth accelerated in August, as it navigates cautious consumer behavior in key markets, including the U.S. Swiss insurer Baloise (TG:BLON) posted a 25.5% rise in net profit for H1 2025, with stronger non-life results and higher investment income offsetting weaker life premiums.

Novo Nordisk (NYSE:NVO), maker of Wegovy, announced a workforce reduction of 9,000 jobs, about 11.5% of its staff, in a restructuring aimed at streamlining operations amid pressure from U.S. rival Eli Lilly. Oracle Corporation (NYSE:ORCL) shares surged after the market close on news that its Oracle Cloud Infrastructure division expects booked revenue to exceed half a trillion dollars, driven by strong demand for its cost-efficient cloud services.

Oil Markets Respond to Geopolitical Tensions

Oil prices rose as geopolitical risks in the Middle East intensified and the possibility of additional restrictions on Russian oil threatened global supply. As of 03:15 ET, Brent crude futures were up 1% at $67.02 a barrel, while U.S. West Texas Intermediate rose 1% to $63.26 a barrel.

Prices jumped in the previous session after Israel targeted Hamas leadership in Doha, prompting concerns over the stability of peace talks, while Reuters reported that President Trump urged the European Union to impose high tariffs on India and China over Russian energy purchases. Trump has already applied 50% tariffs on India and reportedly suggested 100% tariffs on both New Delhi and Beijing. While the move aims to pressure Russia to end its conflict in Ukraine, it could also constrain global supply if major buyers India and China comply, though both nations have signaled limited intention to halt Russian oil 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.

Gore Street Energy Storage Fund PLC (LSE:GSF) reported a net asset value (NAV) of 102.8p per share for the quarter ending June 30, 2025, unchanged from the previous period, as ongoing operational challenges continued to limit dividend coverage.

The company’s quarterly results revealed that an uncovered dividend reduced NAV by 0.8p per share, which was largely offset by positive adjustments in valuation assumptions, adding 0.9p per share.

Operational performance remained subdued, with net cash generation totaling just £1 million after accounting for debt and fund expenses. Dividend coverage for the quarter fell to around 0.2 times, a notable drop from the 0.42 times recorded for fiscal year 2025, despite a reduced quarterly payout of 1p per share.

The weaker performance was mainly linked to difficulties in the Texas (ERCOT) market, though a modest rebound in the third quarter is expected as operational capacity ramps up.

Gore Street’s shares are trading at a 41% discount to NAV, wider than the renewable energy peer group average of approximately 29%.

At the end of the quarter, the company reported net debt of £70.5 million, including £51.4 million in cash against £121.9 million in debt, with an additional £42.9 million of borrowing headroom. Net debt has since fallen to £64 million following the receipt of the first tranche of U.S. investment tax credits (ITCs).

The fund reiterated its fiscal year 2026 dividend guidance of 2.25p per share following the reduction announced in July. Gore Street also expects to pay a 3p per share special dividend in H2 2025 after realizing proceeds from the sale of U.S. ITCs.

The portfolio is now fully operational, with the DogFish and Big Enderby projects coming online after reporting delays had previously affected NAV by 0.4p per share.

In-house asset optimization has been extended to three ERCOT assets, with optimized capacity now representing 28% of the total portfolio. The company reported approximately 20% outperformance relative to Modo benchmarks across the optimized 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.

Gold prices edged higher in Asian trading on Wednesday, remaining just below the record peaks set in the previous session, amid mounting expectations that the Federal Reserve will lower interest rates next week.

As of 02:17 ET (06:17 GMT), spot gold was up 0.5% at $3,646.14 per ounce, following Tuesday’s all-time high of $3,674.09/oz. December gold futures were largely unchanged at $3,684.60/oz after briefly surpassing $3,700 in the prior session.

Year-to-date, gold has climbed nearly 40%, supported by safe-haven demand driven by President Donald Trump’s trade policies and strong central bank buying.

Fed Rate Cut Bets Strengthened by Jobs Revision

Recent U.S. labor data revealed that the economy added 911,000 fewer jobs over the past year than initially reported, signaling a slowdown in payroll growth and a cooling labor market. This reinforced expectations for a 25-basis-point Fed rate cut, with a smaller probability of a 50-basis-point reduction. Lower interest rates tend to lift gold and other metals by making yield-bearing bonds less attractive.

“Monetary policy expectations are now likely to become the primary driver for gold’s direction,” ING analysts commented in a recent note.

ANZ raised its year-end gold forecast to $3,800 per ounce from $3,600, projecting that bullion could reach around $4,000 by June 2026. “Macroeconomic challenges and tension arising from tariffs and sanctions are encouraging investors to hedge risks by allocating more funds to gold,” ANZ analysts added.

Other Metals Show Strength; China CPI in Focus

Precious metals also gained on Wednesday. Platinum futures rose 0.8% to $1,387.60/oz, while silver futures jumped nearly 1% to $41.725/oz, staying close to last week’s highest level since August 2011.

“Silver is also gaining traction, as investors increase their exposure to gold through silver investments,” ANZ analysts noted.

Copper markets were firmer as well, with London Metal Exchange benchmark copper up 0.3% to $9,960.50 per ton, and U.S. copper futures up 0.3% to $4.59 per pound.

Meanwhile, Chinese data highlighted ongoing deflationary pressures in the world’s second-largest economy. Consumer prices fell more than expected in August, as government stimulus failed to counter entrenched deflation, while producer prices declined for the 35th consecutive month.

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.

Cadence Minerals Plc (LSE:KDNC) has entered into a Heads of Terms arrangement with a global shipping and trading firm to finance the restart of the Azteca Plant, part of the Amapá Iron Ore Project in Brazil, the company announced Tuesday.

Under the deal, US$4.6 million will be provided through a pre-payment offtake structure, with Cadence contributing roughly 10-15% of the total. The funds will be allocated to licensing, refurbishing, and restarting the plant, as well as covering initial working capital requirements.

The Azteca Plant is expected to generate approximately 380,000 tonnes annually of 65% Fe concentrate, using around 2 million tonnes of high-grade tailings from Dyke 5 as feedstock. The company estimates operating costs at US$37 per tonne on a Free on Board basis, rising to US$79 per tonne on a Cost and Freight basis into China, compared with current market prices near US$120 per tonne.

Cadence Minerals CEO Kiran Morzaria said: “This agreement marks an important milestone in the staged development strategy at Amapá, providing a pathway to early cash flow through the restart of the Azteca Plant. Cadence will receive a direct return on its investment as production commences, while free cash flow from Azteca will support advancement of the larger 5.5 Mtpa DR-grade project.

“Restarting operations also reinforces Amapá’s social licence to operate and demonstrates to investors and partners that the project is once again a producing asset with near-term cash flow and long-term growth potential. This operational credibility is an essential step in unlocking the full value of Amapá while delivering tangible returns to our shareholders.”

The funding package is split into two portions: US$3.45 million for plant refurbishment and US$1.15 million for working capital. Cadence anticipates the structure will yield around a 70% Internal Rate of Return on its share of the investment, with repayments tied to the tonnes of iron ore shipped.

Once operational, the Azteca Plant is expected to be cash flow positive from its first shipment, supporting the development of the larger 5.5 million tonnes per annum Direct Reduction-grade project at Amapá. First production is projected about three months after license approval, following the completion of remaining studies and permits.

Cadence currently holds a 35.7% equity stake in the Amapá Project, reflecting a total investment of roughly US$15.5 million as of June 2025.

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.