Market Wrap: UK100 skyrockets after BoE 🇬🇧 🚀 Euphoric gain as ECB Lagarde speaks 🇪🇺 📈

📈 Markets & Companies

• European indices are recording dynamic gains, led by London (UK100: +1.8%) after the Bank of England held interest rates steady. Significant gains are also seen on the German DAX (DE40: +1.4%), Dutch AEX (NED25: +1.3%), and Swiss SMI (SUI20: +1.1%). The Paris (FRA40: +0.55%) and Milan (ITA40: +0.85%) exchanges are trading more calmly but remain in the green.

• Glencore: The trading unit is achieving record results due to commodity price volatility triggered by the war in Iran. The company forecasts that full-year core earnings from the marketing unit will "comfortably" exceed the top end of its $3.5 billion guidance. Shares are up 1%.

• BNP Paribas: Shares fell approximately 3.3% as $1.08 billion in credit loss provisions overshadowed a profit beat. Net profit rose 9% to €3.22 billion, supported by the integration of AXA and a one-off revaluation of Allfunds stakes. Management remains prudent.

• Rolls-Royce: The company maintained its annual forecast, seeing adjusted operating profit up to £4.2 billion and free cash flow up to £3.8 billion. The year started strongly across all segments, with firm demand for widebody aircraft. The firm is mitigating Middle East disruptions and executing share buybacks. Shares soared 7.7%.

• Unilever: Underlying sales grew 3.8%, beating expectations due to volumes in Home Care and "Power Brands". Annual growth is projected at the bottom of the 4%–6% range. The combination of the Foods segment with McCormick is planned by mid-2027, with cost synergies of $600 million annually. Shares gained 1.3%.

• Stellantis: Shares lost roughly 3.7% due to a slower profit recovery, despite €960 million in adjusted operating income. A €400 million tariff-cost adjustment in North America masked a potential loss. New Jeep models increased US market share.

• Caterpillar: Shares gained approximately 5% in post-market trading after adjusted profit rose to $5.54 per share, driven by a 38% increase in construction revenue. The energy segment benefited from AI data center demand. Total revenue reached $17.42 billion.

• FX: The yen dominates the forex market today (USDJPY: -2.2%; EURJPY: -2%), supported by narratives around potential currency intervention from Tokyo. Risk appetite is evident in the gains of Antipodean currencies (AUDUSD: +0.5%; NZDUSD: +0.65%). EURUSD gained 0.2% to 1.17.

• Commodities: Brent and WTI crude contracts are undergoing a clear correction after yesterday's record session (OIL: -1.85% to $109.90 per barrel; OIL.WTI: -2.6% to $105.70 per barrel). NATGAS is also losing (-1%). Precious metals are rebounding sharply (GOLD: +2% to $4,630 per ounce; SILVER: +3.3% to $73.75 per ounce).

🌍 Economy & Politics

• Japan Intervention: Japan’s Finance Minister, Satsuki Katayama, stated that authorities are standing by to respond to foreign-exchange moves and are on high alert over speculative moves. USDJPY plunged 2.8% within a few hours, reaching its lowest level since March 2026 (currently near 156.000). These comments followed yesterday's breakout of USDJPY above the 160.000 level, which Tokyo informally treats as a "pain threshold" for yen weakness.

• Eurozone Growth: Economic growth in the Eurozone slowed to 0.1% QoQ in the first quarter of 2026, missing the forecast of 0.2%. Preliminary inflation data for April matched forecasts (CPI: 3%; Core CPI: 2.2%), generating no additional volatility for the euro. Unemployment remains at 6.2%.

• ECB: The European Central Bank maintained rates (deposit rate: 2%), pointing to rising risks for growth and inflation. Future decisions will depend on data and forecasts accounting for energy shocks. The bank did not introduce a hawkish bias.

• Bank of England: The BoE maintained interest rates at 3.75% with an 8-1-0 vote. The inclusion of a vote for a hike indicates more hawkish sentiment within the BoE and growing concerns about exacerbating existing inflationary pressures. The BoE also presented various scenarios for rate evolution depending on the energy market situation.