- UK markets tick higher as rate cut hopes take over.
- Anglo American cuts diamond production.
- US stocks rise as trade talks finally take a breather, Nvidia in focus.
- Chinese stock indices hit one-month highs.
- Oil prices try to find a floor.
- AstraZeneca passes its annual health check with flying colours.
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“UK markets are kicking off the day with a spring in their step, as the US tariff chatter finally quietens down, letting investors zero in on a wave of big earnings reports and hopes for another Bank of England rate cut – markets are practically betting the house on a quarter-point cut today. This positive vibe is spreading across Europe, giving global markets a much-needed boost. Seems like investors may be ready to dance to the tune of good news again.
Diamonds may no longer be a girl’s best friend as Anglo American prepares to write down the value of its De Beers diamond business, which is on the chopping block amid the company’s major transformation. With lab-grown diamonds getting so good that even the biggest diamond fans are questioning the premium on natural stones, and demand from China dipping, Anglo is cutting production guidance by around half to reduce supply and manage stock. It’s clear the company’s future is no longer sparkling with diamonds but shifting to brighter prospects elsewhere.
Washington’s break from tariff talk propped up US markets, giving investors room to focus on company earnings and economic data. A stronger-than-expected jobs report and positive news from the services sector helped lift sentiment across the board. Nvidia was one of the day’s winners, benefiting from a strong spending forecast from Alphabet. While there’s been talk of AI costs dropping faster than expected, huge investment plans from cloud giants are setting Nvidia up nicely for earnings later this month, with plenty of potential for upside surprises.
Chinese stocks took a leap forward, with the Shanghai and Shenzhen indexes hitting one-month highs, fuelled by a surge in AI and robotics – DeepSeek’s groundbreaking tech is giving Western AI giants a run for their money. Easing trade war worries also helped boost investor confidence, as China’s response to US tariffs has been relatively mild.
Oil prices are having a bit of a tug-of-war, with brent oil trying to find a floor at around $74.8 thanks to Saudi Arabia hiking prices for Asia amidst rising demand from China and India, plus some worries about Russian and Iranian supply. However, a big jump in US oil stockpiles and ongoing trade tensions with China, who slapped tariffs on US energy, are keeping a lid on things – the oil market’s navigating a barrel of mixed signals right now.“
Derren Nathan, head of equity research, Hargreaves Lansdown:
““AstraZeneca’s full year results have shown that when it comes to high-octane growth in the pharmaceutical sector, obesity drugs aren’t the only game in town. Rising sales of cancer therapies and cardiometabolic medicines underpinned the performance. Within the portfolio Astra has 14 blockbuster sellers generating $1bn or more on an annual basis and its motoring hard to add to that list. 2025 saw nine positive read outs from key late-stage trials with seven more anticipated this year from new medicines alone. There are also multiple opportunities to add new labels to drugs already on the market.
Astra looks well on the way to achieving its $80bn revenue target by 2030, but there may be some disappointment that this bar hasn’t been raised. Astra looks well on the way to achieving its $80bn revenue target by 2030, but there may be some disappointment that this bar hasn’t been raised. Guidance for 2025 was also on the light side but if 2024 anything to go by upgrades aren’t out of the question as the year shapes up.
As it stands, Astra’s value on the stock market is seriously underselling its growth prospects. But one side-effect of success is further regulatory scrutiny. Investigations by the Chinese authorities on key staff members have been weighing heavy on the stock price and today Astra’s confirmed that the company itself is being probed for unpaid import-taxes for cancer immunotherapies. The release suggests a potential liability of up to $5mn, pocket change in the grander scheme of things. But investors will want more clarity on the likelihood of wider action against the company in China.”
