The FTSE 100 Index continued its downtrend in the past few days, moving from the year-to-date high of £9,358 to a low of £9,160. This crash may continue as the UK bond yield continues soaring to their highest point in a while. 

UK bond yields are soaring

The FTSE 100 Index pulled back as UK’s bond yields surged. The yield of the 10-year government bonds jumped to 4.80 %, its highest level since May, up from the year-to-date low of 4.381%.

Similarly, the longer-term bond yields rose to 5.688%, the highest level since 1998. The yield has been on a constant uptrend after bottoming at 0.386% in 2019.

The stock market tends to underperform when government bond yields are in a strong uptrend. In theory, this often leads to rotation from equities to high-yielding bonds. 

UK bonds are surging because of the rising expectation that the Bank of England (BoE) will maintain interest rates steady in the coming meetings as inflation steadies. The most recent data showed that the headline Consumer Price Index (CPI) rose to 3.6% in July, moving further away from the target of 2.0%.

The yields are also soaring as the market price in higher by the Keir Starmer administration, which faces a multi-billion-pound hole. 

One of the potential tax cut could be a windfall tax on banks, which a lobby argued would raise billions of dollars and leave some money to spare for the government. 

The 30-year gilt rate also jumped as demand for long-dated bonds continued waning globally. Consequently, the GBP/USD pair slumped to 1.3400, its lowest level since August 7 and 3% below the highest point this year. 

Top gainers and laggards in the Footsie

Most interest rate-exposed companies were among the top laggards in the FTSE 100 Index. Taylor Wimpey, a major player in the housebuilding industry, dropped by 3% to 93.15p, down by over 42% from its highest point this year. 

Marks and Spencer, a top UK retailer, plunged to 332p, down by almost 20% from the year-to-date high. Other top laggards in the index were companies like Land Securities, United Utilities, Sainsbury, Barratt Redrow, and Persimmon, all of which plunged by over 2.4%.

On the other hand, Fresnillo’s stock price rose by 0.75% as gold and silver prices continued their upward trajectory. Unilever, Scottish Mortgage, GSK, BP, and Antofagasta stocks were among the top gainers in the index. 

FTSE 100 Index analysis

FTSE 100 chart | Source: TradingView

The daily timeframe shows that the FTSE 100 Index continued its strong downtrend today, moving to its lowest point in weeks. It slumped from a high of £9,355 to £9,145. 

The Relative Strength Index (RSI) has moved from the overbought level of 72 to 49 today. Also, the two lines of the Percentage Price Oscillator have formed a bearish crossover pattern and are pointing downwards. 

These oscillators are yet to get to their pivotal levels, meaning that the index has more downside to go in the coming weeks. If this happens, the nxt point to watch will be at £9,000. A move above the year-to-date high at £9,354 will invalidate the bearish outlook.

Read more: FTSE 100 Index top gainers and losers of 2025 revealed

The post FTSE 100 Index forecast as the UK Gilt market implodes appeared first on Invezz

Global oil markets are operating within a narrow band, with traders closely watching two key developments: the upcoming OPEC+ meeting on production levels and Washington’s next steps in targeting Russian energy supplies.

Brent crude hovered near $69.00 a barrel, edging higher after a 1% gain in the November contract during the previous session, while West Texas Intermediate (WTI) traded close to $65.00.

The market has been waiting for fresh catalysts, as crude has been stuck between $65.00 and $70.00 in recent weeks, about 8% lower year-to-date.

OPEC+ set to decide October output

The Organisation of the Petroleum Exporting Countries and its allies (OPEC+) will convene this weekend to finalise output for October.

Market observers widely expect the group to keep supply steady, after earlier meetings saw supply curbs eased in an effort to claw back market share.

That decision raised concerns of a looming surplus, especially as demand growth remains uncertain amid a US-led trade war that risks slowing energy consumption.

This weekend’s decision will set the tone for the rest of the year, particularly as oil has struggled to break out of its narrow price range.

Traders are positioning for signals that could either confirm stability or raise fresh worries about oversupply.

US pressure on Russian crude flows

Russian oil exports remain central to geopolitical tensions, as the US continues to pressure Moscow by targeting India, one of the largest buyers of Russian crude.

Prime Minister Narendra Modi met President Vladimir Putin in a cordial exchange on Monday, where New Delhi rejected US calls to curb imports.

Washington, however, has not stepped back. Treasury Secretary Scott Bessent confirmed that new sanctions could be announced this week, aiming to push Moscow towards peace in Ukraine.

The measures may weigh further on Russian supply, although the global market impact will depend on how India and other major importers respond.

Indian tariffs and Trump’s statement

Alongside US sanctions, trade tensions added another layer of uncertainty.

President Donald Trump said India had offered to cut tariffs on US goods to zero, following Washington’s imposition last week of 50% levies as punishment for New Delhi’s continued purchase of Russian oil.

While it is unclear when the offer was made or if it will reopen talks, the announcement comes ahead of Trump’s scheduled address at 2 pm Washington time on Tuesday.

India’s role remains critical in shaping oil demand and trade balances. Its refusal to halt Russian imports highlights the limitations of US sanctions when weighed against domestic energy needs.

Any tariff cuts, however, could signal a recalibration of trade relations between the two nations.

Supply risks keep prices rangebound

Despite geopolitical uncertainty, analysts suggest that crude prices are being held in check by two competing forces: risks to supply and fears of oversupply.

Ukrainian strikes on Russian oil facilities have provided a floor for prices, while expectations of a glut have capped gains.

The balance has left oil “rangebound” in recent weeks, with the Brent benchmark unable to break out decisively.

As sanctions debates continue and OPEC+ finalises its October output, traders are braced for volatility.

With Brent stuck near $69.00 and WTI at $65.00, any new policy announcement could push prices beyond their current band.

The post Oil prices edge higher as OPEC+ meeting and US sanctions loom appeared first on Invezz

Gazprom, Russia’s state-owned gas company, has agreed to a slight increase in gas supplies to China through an existing pipeline. 

Additionally, a memorandum was signed for the construction of the large-scale Power of Siberia 2 pipeline, according to state news agencies. 

However, the prices for these supplies to China are lower than those charged to European customers, the reports claimed.

Russia is looking to strengthen its energy collaboration with China, its primary trading partner. This initiative follows a significant loss of market share in Europe due to sanctions imposed after the 2022 Ukraine conflict.

Last month, Reuters reported that China was looking to purchase additional Russian gas via an existing pipeline. This comes after negotiations between the two nations to construct a new pipeline failed to advance significantly.

On Tuesday, Alexei Miller, CEO of Russia’s state-controlled Gazprom, announced agreements to boost natural gas supplies to China.

The existing Power of Siberia pipeline, which connects Eastern Siberia to China, will see its annual capacity increase from 38 billion cubic metres (bcm) to 44 bcm.

New deal

Additionally, Russia and China reached a deal to build the Power of Siberia 2 pipeline. This new pipeline will transport 50 bcm of gas per year from the Bovanenkovo and Kharasavey gas fields in Yamal, through Mongolia, to China.

Miller said, Russian news agencies reported:

Today, a legally binding memorandum was signed on the construction of the Power of Siberia 2 gas pipeline and the Soyuz Vostok transit gas pipeline through Mongolia.

Miller further stated that gas supplies to China are priced lower than those charged to European buyers by Russia. This is attributed to the extensive distances and challenging terrain required for pipeline construction. 

He also noted that Power of Siberia 2 would be the world’s largest and most capital-intensive gas project. The builders of the pipeline and the final investment figures remain undisclosed.

Following a meeting in Beijing between Russian President Vladimir Putin, Chinese President Xi Jinping, and Mongolian President Ukhnaagiin Khurelsukh, Miller announced that gas prices for deliveries via the Power of Siberia 2 pipeline would be determined through separate negotiations, as reported by Russian news agencies.

Additionally, Xinhua, China’s state news agency, reported on Tuesday that the two heads of state engaged in in-depth discussions and signed more than 20 bilateral cooperation agreements, including those in the energy sector.

China purchases

Since Western nations imposed severe sanctions on Russia due to the war in Ukraine, the “no limits” alliance between China, the world’s largest energy consumer, and Russia, the world’s largest producer of natural resources, has become more robust.

According to the Kremlin, China has become Russia’s largest trading partner. China is also the primary buyer of Russian crude oil and gas, the second-largest purchaser of Russian coal, and the third-largest buyer of Russian LNG.

In late 2019, Gazprom initiated natural gas deliveries to China via the 3,000 km (1,865 mile) Power of Siberia pipeline. This supply is part of a 30-year agreement valued at $400 billion.

Exports were approximately 31 billion cubic meters (bcm) in 2024, according to a Reuters report. This year, supplies are projected to reach their intended capacity of 38 bcm.

By approximately 2026-2027, China is set to purchase up to 10 billion cubic meters (bcm) of gas annually from Russia’s Sakhalin Island. This agreement, facilitated by a pipeline, was established in February 2022.

An agreement has been reached to increase gas supplies via the Far Eastern route from 10 bcm to 12 bcm, according to Miller.

Russia’s gas exports to China remain significantly lower than the record 177 bcm it supplied to Europe annually between 2018 and 2019.

Europe has significantly reduced its reliance on Russian energy since 2021. Russian gas now constitutes only 18% of European imports, a sharp decline from 45%, and Russian oil imports have plummeted from approximately 30% to just 3%. 

The European Union aims to completely eliminate Russian energy imports by 2027.

The post Russia’s Gazprom boosts gas supplies to China, plans new pipeline appeared first on Invezz

Nestle’s shares dropped nearly 3% as the markets opened on Tuesday after the Swiss food and beverage giant dismissed its chief executive, Laurent Freixe, following an internal probe into an undisclosed relationship with a subordinate.

However, the stock was able to recover some losses by 10 am, and was down by about 1.5% at 10:15 am.

The company said the affair breached its code of business conduct, prompting his immediate removal late on Monday.

The abrupt ouster deepened concerns over leadership instability at the Vevey-based group, which has now replaced its top executive twice in little over a year.

The latest upheaval comes as Nestlé continues to struggle with weak sales and persistent investor dissatisfaction with its shares, having lost almost a third of their value over the past five years.

Nestlé named Philipp Navratil, head of its Nespresso business since July 2024 and a company veteran since 2001, as the new chief executive.

Freixe’s leadership: a turbulent chapter for Nestlé

Freixe had been appointed only the previous year, following the sudden departure of long-serving Chief Executive Mark Schneider.

However, his brief tenure failed to stem Nestlé’s slide, with the group’s shares declining a further 17% during his leadership.

Maurizio Porfiri, chief investment officer at Maverix, said Freixe’s tenure was marked by delays in restructuring.

“Another fresh start is needed, and it is time for more stability to return to the management at this global corporation,” he told Reuters.

“The market did not particularly like Freixe, and the restructuring goals were also put on the back burner,” Porfiri added.

The turmoil comes just months after Nestle launched a review of its vitamins and supplements business, signalling that divestments could be on the horizon following disappointing first-half results.

“Nestle has received much unwanted scrutiny over the past 13 months after the departure of Freixe’s predecessor—also unexpected—and the poor share performance of the preceding 2.5 years,” Bernstein analysts wrote in a note.

Investor sentiment remains cautious

The latest change is likely to leave questions unanswered about Nestle’s mid-term direction and “keep a lid on the equity story until we hear more about Mr Navratil’s plan,” JPMorgan analysts said in a research note.

They added that the latest move was unlikely to reassure investors, noting that it was the second time in a year that the company had chosen a new chief without a wide search process.

They also cautioned that Navratil risked being “boxed in” by his predecessor’s turnaround plans at a time when the market remained unconvinced about the group’s prospects.

Bernstein also expressed concern that Navratil would inevitably seek to put his own stamp on strategy despite initially signalling alignment with the company’s current direction.

“This adds an element of uncertainty around the future direction of the business in the near term, which is unlikely to be helpful toward investor sentiment,” the analysts said.

Analysts hope for a ‘generational reset’ with Navratil’s appointment

At 48, Navratil represents a generational shift in leadership and will be tasked with restoring investor confidence in a company whose shares have lost almost a third of their value over the past five years.

Analysts at Baader Helvea described Navratil’s appointment, alongside the planned succession of chair Paul Bulcke by former Inditex executive Pablo Isla in 2026, as a long-awaited generational handover.

“We see Mr. Navratil’s appointment–born 1976–, together with the change at the chairman position next year with Mr. Pablo Isla as the real generational step that should probably have happened 12 months earlier,” Baader Helvea’s Andreas von Arx said.

He added that Navratil could bring fresh ambition to underperforming divisions such as frozen foods, infant nutrition, generic milk products, and water.

“The reasons for these issues seem structural, but Freixe’s view was that they were due to mismanagement,” the analyst says.

The post Nestle CEO ouster: shares fall; doubts over Navratil’s strategy to weigh on sentiment appeared first on Invezz

The Nio stock price rebounded in Hong Kong and in the premarket after the company published strong delivery numbers. It jumped to a high of $6.50, up by 120% from its lowest level in April this year, making it one of the best-performing companies in the EV space.

Nio deliveries are soaring 

Nio stock price jumped on Tuesday, helped by its strong vehicle delivery numbers as customers continued to buy its newly launched vehicles.

In a report, the company said that it delivered 31,305 vehicles in August, a record high that was a 55.2% increase from the same period last year. This surge brought its cumulative deliveries so far this year at 166,472, up by 30% from the same period last year.

Nio’s business has done well because of the recent product launches that have been received well by its customers. Its premium Nio brand sold 10,525 vehicles, while Onvo sold 16,434 vehicles, and Firefly had 4,346.

These numbers mean that customers are embracing its new vehicles, a trend that will continue in the coming months.

Most importantly, the deliveries came a few days after its top competitor like Byd published weak financial results, in which it blamed the rising competition and pricing factors for the weakness.

Nio is also doing well as the Chinese EV market becomes highly saturated. Some of the top companies in the country like Li Auto, XPeng, SAIC, and Cherry are all selling thousands of vehicles a month, with most of them relying on discounting.

Read more: Nio stock surges 11% as Morgan Stanley reaffirms bullish view after ES8 launch

Nio earnings ahead 

The next important catalyst for the Nio stock price is the upcoming earnings, which will come out shortly before the US market opens.

Its business delivered 72,056 vehicles in the quarter, up by 25.6% from the same period last year.

Therefore, using these numbers, analysts expect the upcoming results to show that its revenue rose by 13% YoY to CNY 19.74 billion, a higher growth rate than other companies like Tesla and Byd. 

Analysts also expect the upcoming results to show that its losses narrowed slightly during the quality. In this, the loss-per-share is seen coming in at CNY 2.0, down from CNY 2.21.

Nio’s guidance is that its revenue for the current quarter will be CNY 89.7 billion, up by 36.50% from the same period last year. This will lead to an annual revenue of CNY 89.72 billion last year, and will then be followed by CNY 116.25 billion next year.

Nio stock price technical analysis 

Nio stock chart | Source: TradingView

The daily chart shows that the Nio share price has been in a strong bullish trend in the past few months, moving from a low of $3 to $6.50 today, in line with we had predicted here and here.

The stock has moved above the upper side of the inverse head-and-shoulders pattern at $5.48. This is one of the most popular bullish reversal signs in technical analysis.

It has also formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) have crossed each other.

Also, the Relative Strength Index (RSI) and the MACD indicators have continued rising, a sign that it is gaining momentum.

Therefore, the stock will likely continue rising as bulls target the next key resistance level at $7.67, up by 17% from the current level. A drop below the support at $6 will invalidate the bullish outlook.

The post Here’s why Nio stock price may surge after earnings appeared first on Invezz