Daily market update: precious metals, Flutter, Pinterest, Expedia
Archived article: Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
“The FTSE 100 was just about keeping its head above water to stay above the 9,100 mark on Friday morning,” says AJ Bell Head of Financial Analysis Danni Hewson.
“Overall it has been a mixed week for the index with the split vote and hawkish tone adopted by the Bank of England yesterday lifting sterling and hitting the relative value of the Footsie’s dominant overseas earnings.
“US gold futures hit a fresh record high on reporting that the Trump administration has imposed tariffs on imports of one-kilo bars. Sustained by factors like its safe haven credentials and a weakening dollar in 2025 – this latest development will have gold bugs eyeing the $4,000 level.
“The news is more bad news for Switzerland after being hit by a shock 39% export tariff to the US, given it is one of the biggest precious metal hubs globally.
“The move higher in gold helped to lift shares in gold and silver miner Fresnillo in London, extending its advance year-to-date to more than 160%.
“Pharmaceutical giant GSK was also among the gainers on Friday morning as it secured a positive outcome from the settlement of a patent dispute involving CureVac with which it has a licence agreement. The dispute related to mRNA vaccines and gives GSK a modest, though still welcome, cash injection and the prospect of sales royalties.”
Flutter Entertainment
“Gambling outfit Flutter Entertainment struck out with investors despite reporting solid growth and lifting annual revenue guidance by a smidge overnight.
“These positive headlines do not tell the whole story as, apart from its US iGaming business and a strong contribution from international acquisitions, the company saw underwhelming growth across most regions.
“This suggests the company could be losing share in several markets, with overall growth in the US, for example, some way behind several of its peers.”
“It has been an earnings season of contrasting fortunes for the social media space and that continued as Pinterest pricked investors’ attention in a bad way by posting lower than expected earnings.
“Perhaps even more significant was the stalled US user growth reported by the company. As followers of the fortunes of MySpace, Bebo and Vine could tell you it can be hard to regain relevance in the social media world once you have lost it.
“There is no suggestion that’s the case at Pinterest just yet. The company issued positive guidance for the third quarter, but it does explain why the market is nervous about the fact growth in user numbers was static in its biggest market. These trends will also be closely watched by advertisers and have implications for the company’s future revenue generation.”
Expedia
“Recovering travel demand in the US helped Expedia achieve take-off in after-hours trading on Thursday with the company upgrading its growth forecasts for 2025.
“Tariffs had helped disrupt travel spending but it appears prospective US travellers are prepared to book again. This rebound in its domestic market is being complimented by growth overseas.”
Danni Hewson: Head of Financial Analysis
Danni Hewson is AJ Bell's Head of Financial Analysis. She joined the company in 2021 and is responsible for producing analysis and commentary across a broad range of subjects, from financial markets to economics and...
