In European equities on Friday, the CAC 40 in Paris ended down slightly, while the DAX 40 in Frankfurt rose 0.6%.
asserted
DAX → end → Frankfurt
Brent oil was quoted at 106.21 dollars a barrel in London on Friday at the time of the equity market close, down from 107.25 dollars late on Thursday on hopes of progress between the US and Iran.
asserted
oil → quote → US
Iran’s foreign minister said it had submitted an offer to Washington that could reopen the Strait of Hormuz to tanker traffic within seven days.
uncertain
that → say → days
“If certain conditions are met, the strait will be open within seven days and talks will start,” Abbas Araghchi told media outlets on the sidelines of a UN gathering.
asserted
Araghchi → meet → gathering
But analyst Stephen Innes said while Iran’s seven-day roadmap sounds “fresh enough” on the headline, “once you strip away the packaging it is basically the same [memorandum of understanding] that has been sitting on the table for weeks, only now compressed into a tighter timetable”.
asserted
that → say → timetable
“He risks taking heavy political fire for returning to a deal critics would portray as too favourable to Iran, without necessarily getting enough immediate relief at the pump to make the concession look worthwhile,” he said.
asserted
he → risk → pump
The pound was quoted at 1.3238 dollars on Friday, up from 1.3214 dollars at the same time on Thursday.
asserted
pound → quote → Thursday
Against the euro, sterling ebbed to 1.1616 euros from 1.1628 euros.
asserted
sterling → ebb → euros
A report in the UK offered some encouragement for economic prospects, with consumer confidence continuing its gradual recovery.
asserted
confidence → offer → recovery
GfK’s long-running consumer confidence index rose one point in September, continuing the slow recovery seen since April, but remains firmly in negative territory at minus 13.
asserted
index → run → minus
It marks the first time since summer 2024 that the index has recorded three consecutive overall monthly increases.
asserted
index → mark → increases
The largest gains this month came from perceptions of the wider economy over the past year – up four points to minus 36 – and personal finances over the same period – up three points to minus three.
asserted
gains → come → minus
The euro rose to 1.1396 dollars from 1.1367 dollars.
asserted
euro → rise → dollars
Against the yen, the dollar was trading at 157.36 yen, down from 158.98 yen.
asserted
dollar → trade → yen
After a calmer start to the day, bond yields spiked once more as the trading session headed to the close.
asserted
session → spike → close
The yield on the US 10-year Treasury was quoted at 5.21%, stretched from 5.11%.
asserted
yield → quote → %
The yield on the US 30-year Treasury was quoted at 5.52%, widened from 5.45%.
asserted
yield → quote → %
Barclays analyst Emmanuel Cau said rates are near levels where buying equities is “no longer a no-brainer”.
asserted
buying → say → equities
He thinks while equities have weathered the storm reasonably well so far, the key question is “where is the breaking point?”.
“With next week looking particularly heavy on the data front, expect some further volatility,” he said.
asserted
he → think → volatility
Mr Cau said one reason why equities have held up relatively well so far, based on recent client conversations, is likely that many remain hopeful of US-Iran de-escalation.
asserted
many → say → escalation
“That would arguably come as a welcome relief to both the bond and equity markets, but remains elusive at this stage.
asserted
That → come → stage
Without tangible progress on that front, markets are likely to stay on edge, until at least the Q3 earnings season, which will be key for equities to reconnect with sound fundamentals,” Mr Cau added.
asserted
Cau → stay → fundamentals
On the FTSE 100, Computacenter rallied 3.2% after Thursday’s falls when the stock traded ex dividend, while Glencore firmed 2.2% as UBS upgraded to ‘buy’ from ‘neutral’.
asserted
UBS → rally → neutral
In the red, oil stocks BP, Shell and Ithaca Energy were down 2.3%, 0.8% and 3.6% respectively, reflecting the lower oil price.
asserted
stocks → reflect → price
On the FTSE 250, Harworth Group rose 5.1% after Peel Holdings raised its takeover offer to a “best and final” 187 pence per share in cash, valuing the property regeneration company at around £631.7 million.
asserted
Holdings → rise → million
The new offer is 8.4% above Peel’s previous 177.5p bid and represents a 30% premium to Harworth’s closing share price on August 5, before the offer period began.
asserted
period → represent → August
At the other end of the mid-cap index, Raspberry Pi Holdings tumbled 5.8%, reversing some of Thursday’s 20% jump.
asserted
Holdings → tumble → jump
The stock had rallied after Raspberry Pi said it was well placed for further rapid growth following a record first-half performance driven by strong demand, increased unit shipments and a favourable product mix.
asserted
it → rally → demand
Among smaller caps, Safestay plunged 32% after swinging to a first-half pre-tax loss of £2.1 million from a profit of £436,000 a year earlier.
asserted
Safestay → plunge → 436,000
The hostel operator said the trading environment remained challenging and it continued to be mindful of cost pressures.
asserted
it → say → pressures
Meanwhile, Capricorn Energy jumped 14%, while Genel Energy shares were down 1.8%.
asserted
shares → jump → ?
Capricorn Energy, an oil and gas company with operations in Egypt, withdrew its support for its takeover by DNO Bidco, as it instead recommended a higher offer by Genel Energy.
asserted
it → withdraw → Energy
Genel on Friday offered 4.75 dollars in cash plus a special dividend of 99 US cents, valuing Capricorn Energy at 5.74 dollars per share in total, or 436 million dollars.
asserted
Genel → offer → total
Gold was quoted at 4,282.86 dollars an ounce, up from 4,252.84 dollars.
asserted
Gold → quote → dollars
Monday’s local corporate calendar has half-year results from Christie Group, Tullow Oil and Likewise Group.
asserted
calendar → have → Group
Monday’s global economic calendar sees the start of the Reserve Bank of Australia meeting and the Dallas Fed manufacturing index.
asserted
calendar → see → meeting
Later in the week, US nonfarm payrolls and euro area inflation data will be released.
asserted
payrolls → release → week
The Aporia
