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UK's FTSE 100 Closes Higher; Vodafone, easyJet Surge

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British equities ended the week higher, with the FTSE 100 rising 0.24% on Friday, as investors digested corporate developments and geopolitical tensions in the Middle East.

Vodafone Group (VOD.L) led gains on the blue-chip index, with its shares climbing 12.67%, after the British telecommunications company reached a $5.95 billion agreement that will see Emirates Telecommunications Group, d/b/a e&, sell its remaining 16.21% stake in Vodafone to the Niel family group's Vega acquisition vehicle.

EasyJet (EZJ.L) shares also surged, ending the session up 14.08%, after the British budget airline agreed on the key financial terms of a potential 5.7 billion-pound-sterling takeover offer from Apollo. EasyJet's board backed the proposal and withdrew its support for an indicative offer from Castlelake, saying Apollo's bid delivers a "superior outcome" for shareholders.

"Whilst the chance of a further improved offer can't be dismissed, we note that Castlelake was already bid up by the easyJet Board from an original proposal at [GBP]5.60/share. Some peers would now screen more attractively than easyJet on P/NAV basis, in our view," commented RBC Capital Markets.

In geopolitical news, the US launched new airstrikes against Iran on Thursday. In response, Iran attacked US assets in Kuwait, Bahrain and Qatar.

Following US President Donald Trump's pronouncement that the ceasefire with Iran was "over," an unnamed US official said the country remains committed to engaging in "technical talks" with Iran in an attempt to resolve the conflict, MS Now reported, adding that some Republican lawmakers are becoming increasingly concerned about the political impact of a prolonged conflict ahead of the US midterm elections.

Investors will look ahead to a series of UK economic indicators next week, including the British Retail Consortium's retail sales monitor on July 14, followed by May gross domestic product, trade, industrial production and manufacturing output data on July 16, for fresh clues on the strength of the economy.

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Asia Markets

Update: US Equity Indexes Jump as Washington's Strikes to Prevent Iran From Controlling Hormuz Drive Crude Oil Lower

(Updates with index/price moves, macroeconomic data, and company/geopolitical news from the first paragraph.)US equity indexes rose as Washington's move to degrade Iran's ability to control the Strait of Hormuz by attacking commercial ships transiting the critical waterway sent crude oil prices lower, setting the stage for investors to refocus on technology.The Nasdaq Composite advanced 1.3% to 26,206.89, the S&P 500 climbed 0.8% to 7,543.64, and the Dow Jones Industrial Average marched 0.3% higher to 52,487.41 on Thursday. Technology and consumer discretionary led the gainers, while consumer staples and energy paced the decliners.US Central Command has hit 170 Iranian military targets over the past two nights after Tehran attacked three commercial ships transiting the Strait of Hormuz, the chokepoint for about a fifth of global crude oil flows. On Wednesday, before the second round of 90 strikes, US Vice President JD Vance said: "If Iran tries to close the strait down, there's going to be a response [from] the American military. That's the deal."The renewed tension is expected to be relatively short-lived because practical economic and political realities inhibit both the US and Iran, Vikas Dwivedi, global energy strategist at Macquarie, said in a note. The US is constrained by the risk that oil prices could rise, undermining the Federal Reserve's ability to ease inflation to its 2% target. The Fed's June 16-17 meeting minutes, released Wednesday, showed a wide diversity of views on the monetary policy path ahead."Iran has come through the negotiations with (arguably) a great deal," Dwivedi said. "We would be surprised if they overplay a good hand and test President Trump's patience and restraint for minimal remaining gain."In response to the new US strikes on infrastructure, Iran attacked US military sites in Bahrain, Kuwait, and Qatar, according to reports from Reuters and Al Jazeera, a Middle Eastern broadcaster, on Thursday. Foreign Minister Abbas Araghchi spoke with his counterparts in Saudi Arabia, Turkey, and Oman, as well as Pakistan's army chief, Field Marshal Asim Munir, to explain Tehran's rationale, the Associated Press reported Thursday, citing Araghchi's Telegram channel."The question confronting traders is whether Iran is willing to return to large-scale kinetic war with the US and its allies if necessary to strengthen its claim of control over the Strait of Hormuz, something that it has apparently not been granted by way of any diplomatic negotiations so far," Thierry Wizman, global foreign-exchange and rates strategist at Macquarie, said in a note Thursday.Front-month global benchmark North Sea Brent dropped 2.6% to $76.02 a barrel, and US West Texas Intermediate declined 2.4% to $71.78 a barrel, trading near intraday lows.The CBOE Volatility Index, also known as the fear gauge, dropped 6.3% to 15.84.Most US Treasury yields fell, with the 10-year down 1.8 basis points to 4.55% and the two-year declining 2.9 basis points to 4.17%.Gold futures advanced 1.5% to $4,142.3, and silver futures jumped 4% to $60.89.In economic news, US initial jobless claims fell sequentially to 215,000 in the week ended July 4 from an upwardly revised 217,000, compared with expectations for 217,000 in a Bloomberg-compiled survey. The four-week moving average declined by 3,750 to 218,750.In company news, Micron Technology (MU) increased its planned US investment to more than $250 billion through 2035 and outlined intentions to invest up to $3 billion to bolster the domestic semiconductor supply chain, sending the company's shares higher Thursday.

Dow JonesNasdaq CompositeS&P 500$MU
Asia Markets

Update: US Equity Indexes Rise as Washington Aims to Prevent Iran From Gaining Control of Hormuz

(Updates with index/price moves, macroeconomic data and company/geopolitical news from the first paragraph.)US equity indexes rose amid gains in technology and as crude oil fell in the aftermath of Washington degrading Iran's capability to attack commercial ships transiting the Strait of Hormuz.The Nasdaq Composite advanced 0.9% to 26,109.6, the S&P 500 climbed 0.7% to 7,531.4, and the Dow Jones Industrial Average marched 0.3% higher to 52,498.1 after midday Thursday. Technology and financials led the gainers, while consumer staples and energy paced the decliners.US Central Command overnight hit 90 Iranian military targets, according to its social media post on X, after striking 80 on the previous night following Iran's attacks on three commercial ships transiting the Strait of Hormuz, the chokepoint for about a fifth of global crude oil flows.On Wednesday, before the second round of strikes on Iran, US Vice President JD Vance said: "If Iran tries to close the strait down, there's going to be a response [from] the American military. That's the deal."Tehran on Thursday said it had attacked US military sites in Bahrain, Kuwait, and Qatar in response to the new US strikes on infrastructure, according to reports from Reuters and Al Jazeera, a Middle Eastern broadcaster. Iran fired 10 ballistic missiles at Jordan's Azraq military base, Al Jazeera reported, citing the Islamic Revolutionary Guard Corps. The IRGC launched the missile strike targeting the "US command-and-control center," Al Jazeera cited an IRGC statement carried by Iran's semi-official news agency, Fars."The question confronting traders is whether Iran is willing to return to large-scale kinetic war with the US and its allies if necessary to strengthen its claim of control over the Strait of Hormuz, something that it has apparently not been granted by way of any diplomatic negotiations so far," Thierry Wizman, global foreign-exchange and rates strategist at Macquarie, said in a note Thursday.The front-month global benchmark North Sea Brent slid 2.1% to $76.35 a barrel, and the US West Texas Intermediate declined 2.1% to $72.00 a barrel.The CBOE Volatility Index, also known as the fear gauge, dropped 5.1% to 16.04.Most US Treasury yields fell, with the 10-year down 2.4 basis points to 4.54% and the two-year declining 3.1 basis points to 4.17%. Investors are weighing a worsening geopolitical environment and the Federal Reserve's meeting minutes released Wednesday, which showed diversity in views on the monetary policy path ahead.Gold futures advanced 1.5% to $4,142.3, and silver futures jumped 4% to $60.89.In economic news, US initial jobless claims fell sequentially to 215,000 in the week ended July 4 from an upwardly revised 217,000, compared with expectations for 217,000 in a Bloomberg-compiled survey. The four-week moving average declined by 3,750 to 218,750.In company news, PepsiCo (PEP) reported fiscal Q2 results above Wall Street's estimates on Thursday, although soft consumer spending in the US weighed on its North American performance. Shares fell 3.3%, among the laggards on the Nasdaq.Paramount's (PSKY) $110 billion acquisition of Warner Bros. Discovery (WBD) could face lawsuits from US states to block the deal as soon as next week, Reuters reported, citing two sources familiar with the matter. Shares of Paramount dropped 4.8%, the worst performer on the S&P 500.

Dow JonesNasdaq CompositeS&P 500$PEP$PSKY$WBD
Asia Markets

Exchange-Traded Funds Higher as US Equities Rise After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV rise. Actively traded Invesco QQQ Trust (QQQ) added 1.5%.US equity indexes were higher after midday Thursday, with technology sector rising and crude oil prices lower amid worries over renewed US-Iran tensions.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each lost about 1%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) rose 2.4%; iShares US Technology ETF (IYW) added 1.6%, and iShares Expanded Tech Sector ETF (IGM) was up 2.2%.The State Street SPDR S&P Semiconductor (XSD) climbed up 5%, and iShares Semiconductor (SOXX) gained 4.9%.FinancialThe State Street Financial Select Sector SPDR (XLF) rose 1.2%. Direxion Daily Financial Bull 3X Shares (FAS) advanced 3.5%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), declined 3.6%.CommoditiesCrude oil dipped 2%, and the United States Oil Fund (USO) fell 2.7%. Natural gas lost 6%, and the United States Natural Gas Fund (UNG) was down 6.2%.Gold on Comex rose 1.5%, and the State Street SPDR Gold Shares (GLD) added 1.2%. Silver was up 4%, and iShares Silver Trust (SLV) was 3.4% higher.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) slipped 1.1%. The Vanguard Consumer Staples ETF (VDC) fell 1.1%, and iShares Dow Jones US Consumer Goods (IYK) was down 1.2%.The State Street Consumer Discretionary Select Sector SPDR (XLY) rose 0.8%. VanEck Retail ETF (RTH) shed 0.7%, and the State Street SPDR S&P Retail (XRT) gained 0.9%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) fell 0.4%, iShares US Healthcare (IYH) lost 0.2%, and Vanguard Health Care ETF (VHT) was down 0.3%. IShares Biotechnology ETF (IBB) was up 0.2%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) rose 0.8%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were also higher.CryptocurrencyIn midday activity, bitcoin (BTC-USD) added 0.7%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) gained 0.6%, ProShares Ether ETF (EETH) rose fractionally, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 2.6% lower.

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