Early market roundup: European stocks down as Iran mulls US proposal

European stocks traded lower on Thursday morning, as a week-to-date rally took a breather, though geopolitical developments, Nvidia earnings and the prospect of a pair of mega US floats gave investors plenty to mull over.

The FTSE 100 index traded down 41.74 points, 0.4%, at 10,390.60. It is up more than 2% so far this week.

The FTSE 250 edged up 17.17 points, 0.1%, at 22,855.55, and the AIM all-share edged up 0.72 of a point, 0.1%, at 793.53.

The Cboe UK 100 was down 0.4% at 1,033.62, the Cboe UK 250 was up 0.1% at 19,763.83, and the Cboe small companies edged up 0.1% at 18,559.77.

In Paris, the CAC 40 was down 0.4%, while the DAX 40 in Frankfurt fell 0.3%.

Iran said on Wednesday it was examining a new US proposal to end the Middle East war, as President Donald Trump described the talks as being on the ‘borderline’ between a deal and renewed strikes.

Trump, who said earlier that negotiations were in their ‘final stages,’ later warned that the window for diplomacy could close quickly.

‘It’s right on the borderline, believe me,’ Trump told reporters at Joint Base Andrews, near Washington. ‘If we don’t get the right answers, it goes very quickly. We’re all ready to go.’

He said a deal could come ‘very quickly’ or ‘in a few days,’ but warned Tehran would have to provide ‘100% good answers.’

A barrel of Brent rose to $106.44 early Thursday from $105.26 at the time of the London equities close on Wednesday. Gold declined to $4,515.62 an ounce from $4,536.32.

Sterling fell to $1.3420 on Thursday morning from $1.3456 late Wednesday afternoon. Against the euro, it declined to €1.1563 from €1.1568.

The euro fell to $1.1601 from $1.1632. Against the yen, the buck advanced to JP¥159.06 from JP¥158.69.

‘As President Trump claims negotiations are in their ’final stages’, the FX market is trading a de-escalation with much more cautiousness than two weeks ago. The hawkish Fed backdrop is also making it harder to bet against the dollar,’ ING analysts commented.

The yield on the 10-year US Treasury stretched to 4.60% early Thursday, from 4.58% at the time of the London equities close on Wednesday. The 30-year yield widened to 5.13% from 5.11%.

Federal Reserve officials indicated interest rates will have to stay higher for longer, or even increase, should higher energy costs keep inflation elevated, minutes on Wednesday showed.

‘Elevated inflation readings together with uncertainty related to the duration and economic implications of the Middle East conflict could necessitate maintaining the current policy stance for longer than previously anticipated,’ the minutes from the April Federal Open Market Committee showed.

In addition, ‘a majority’ of participants highlighted, that some ‘policy firming’ would likely become appropriate if inflation were to continue to run persistently above 2%, the minutes showed.

Some officials said it will likely be appropriate to lower rates once there are ‘clear’ indications that disinflation is firmly back on track or if solid signs emerge of greater weakness in the labour market.

At its April meeting, the Federal Open Market Committee voted to leave the federal funds rate target range at 3.50%-3.75%.

Wall Street closed higher in the US on Wednesday, with the Dow Jones Industrial Average up 1.3%, the S&P 500 up 1.1% and the Nasdaq Composite up 1.5%.

Nvidia shares traded 1.3% lower after hours. It said AI demand continues to expand at an ‘unprecedented’ pace as it delivered a beat-and-raise and rewarded shareholders with a bumper increase in its dividend.

Nvidia Chief Executive Jensen Huang told analysts this was an ‘extraordinary quarter’ and that demand has gone ‘parabolic.’

‘The world is rebuilding computing for agentic AI and robotic physical AI,’ and Nvidia sits at the ‘centre of these transitions’, he added.

‘We built Nvidia compute platform over three decades...so that when AI arrived Nvidia would be ready,’ the CEO said, adding, ‘it has arrived.’

Nvidia said revenue totalled $81.62 billion in the three months to April 26, up 85% from $44.06 billion a year prior, and ahead of the $78.62 billion FactSet consensus. Net income more than tripled to $58.32 billion from $18.78 billion. Diluted earnings per share improved to $2.39 from $0.76.

Elsewhere, there was also IPO fever in New York. Space Exploration Technology’s filing with US regulators was revealed Wednesday, laying out plans for what could become the largest initial public offering in history as Elon Musk’s rocket and satellite company seeks to raise up to $75 billion on the public markets.

The filing with the Securities & Exchange Commission – the first time SpaceX has publicly disclosed detailed financial information - revealed that the company generated $18.7 billion in revenue in 2025 and posted an operating loss of $2.6 billion as it poured money into next-generation rocket development and AI.

ChatGPT maker OpenAI is preparing to file for a stock market listing in the coming days, possibly as early as Friday, the Wall Street Journal reported Wednesday, citing people familiar with the matter.

Valued at $852 billion in a recent funding round, OpenAI is working with bankers at Goldman Sachs and Morgan Stanley on a draft prospectus it plans to file confidentially with regulators, with the aim of going public as early as September, according to the report.

SoftBank, a major investor in OpenAI, shot up 20% in Tokyo.

Tokyo’s Nikkei 225 ended up 3.1% on Thursday. In China, the Shanghai Composite fell 2.0%, while the Hang Seng Index in Hong Kong was 1.1% lower. The S&P/ASX 200 in Sydney rose 1.5%.

Elsewhere in Asia, Samsung Electronics added 8.5% in Seoul, after a planned strike was delayed ‘until further notice’.

In London, Smiths Group fell 1.0% as it lowered revenue guidance. The engineer now expects organic revenue growth of around 2% for the full year, cutting its guidance from the 3% to 4% range. The outlook reflects a ‘£10 million impact in the third quarter and assuming continuing disruption in the Middle East’, it added.

Defence technology company Qinetiq Group swung to annual profit and it extended a share buyback.

The stock rose 9.9%.

Pretax profit in the year to March 31 amounted to £155 million, swinging from a loss of £106 million. Revenue edged down 0.5% to £1.92 billion from £1.93 billion.

Qinetiq’s dividend was raised by 24% to 11.00 pence per share from 8.85p, it adds, and it expands its share buyback by £200 million, ‘commencing in March 2027, when we complete our current buyback commitment’.

For financial 2027, it expects revenue growth between 3% and 5%.

On AIM, Zinc Media surged 17%. It has been commissioned to produce ‘a major television series’ in the Middle East, in a deal worth $6 million.

‘The commission is expected to be recognised fully in the current financial year, with international distribution rights generating additional revenue over the longer term. The series is one of the longest-running entertainment formats in the Arab world, with significant reach across the Middle East and wider Arab diaspora. Now entering its 18th season, the show follows inventors and entrepreneurs as they develop ideas with the potential to change lives and impact the world, combining innovation, entrepreneurship and competition,’ Zinc says.

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