Microsoft & Meta boost Nasdaq; copper sinks 19% on tariffs

The Nasdaq rose in futures trading after strong earnings from Microsoft and Meta, while copper futures dropped 19.4% following Donald Trump’s announcement of a 50% US tariff on the metal. The yen gained 0.6% after the Bank of Japan held rates steady but raised its inflation forecasts, fuelling rate hike speculation. European stocks opened slightly higher, while Asian shares fell, with Hong Kong’s market down 1.1% after weaker Chinese PMI data.

Equities

The FTSE 100 was flat on Wednesday, rising just 0.01%, while the FTSE 250 slipped 0.08% as investors weighed mixed earnings from UK companies ahead of potential updates on US trade policy.

Aston Martin fell 9.7% after warning that tariffs on US imports and weak demand in China would hit profits. HSBC shares dropped 4.5% after the bank reported a larger-than-expected fall in quarterly profit, driven by losses in China. Taylor Wimpey was down 6.3% after cutting its full-year operating profit forecast.

GSK rose 4.7% and lifted the pharmaceuticals and biotech index by 2.9%, after it raised its full-year outlook, saying profits and sales were now expected at the top end of its forecast range. Rio Tinto lost 1.3% after reporting its weakest first-half underlying profit in five years. JD Sports fell 3.5% following weaker-than-expected sales from its key partner Adidas. Shares in BAE Systems slipped nearly 2% despite an upgraded annual earnings forecast.

RHI Magnesita dropped 10.2% after lowering its profit outlook, while Bodycote jumped 12.7% after announcing a £30 million share buyback. Glencore rose 1.9% after it said it would cut $1 billion in costs by 2026.

In the US, the S&P 500 fell 0.12%, the Dow Jones lost 0.38%, and the Nasdaq gained 0.15%. Markets had moved higher after stronger-than-expected GDP data showed the US economy grew 3% in Q2, but comments from Federal Reserve Chair Jerome Powell erased gains.

Powell said it was too soon to say whether rates would be cut in September, dampening expectations that had earlier risen to around 68%. Market pricing for a September rate cut dropped below 50% after his remarks.

Freeport-McMoRan shares tumbled 9.5% after Donald Trump announced a 50% tariff on copper pipes and wiring, excluding inputs like ores and cathodes. The materials sector fell 2% as a result. Microsoft and Meta each rose more than 6% in extended trading after reporting strong quarterly results. Starbucks edged down 0.2% despite better-than-expected sales. Hershey gained 1.4% following upbeat earnings, and VF Corp, the parent company of Vans, climbed 2.6% after beating revenue estimates. Teradyne surged 18.9% after delivering strong quarterly results.

Forex & Commodities

The yen rose 0.5% to 148.78 per dollar after the Bank of Japan left interest rates unchanged at 0.5% but upgraded its inflation forecasts through to 2027. The central bank also said price risks were now “roughly balanced”, prompting fresh speculation about a possible rate rise in October. Governor Kazuo Ueda’s press conference later in the day is expected to offer further guidance.

The dollar remained firm, supported by economic resilience in the US and the Federal Reserve’s decision to leave rates steady. Chair Jerome Powell signalled no urgency to cut rates, with markets now pricing in around 36 basis points of easing by December. The dollar index was down slightly to 99.67 but remained near a two-month high, heading for a 3% monthly gain—its first of the year. Sterling traded at $1.3272, near a two-and-a-half-month low, and was down around 3.3% for July. The euro stood at $1.1441, still nearly 3% lower for the month despite a small recovery.

Gold was up 0.6% to $3,295.37 per ounce, rebounding from a one-month low after a series of US tariff announcements triggered renewed trade uncertainty. Trump’s new measures include a 15% tariff on imports from South Korea and a 50% tariff on Brazilian goods. Spot silver rose 0.2% to $37.21, platinum gained 1.6% to $1,333.45 and palladium added 3.1% to $1,242.45.

Oil prices were steady, with Brent crude for September down 10 cents at $73.14 a barrel. US crude inventories unexpectedly rose by 7.7 million barrels last week, while gasoline stocks fell 2.7 million barrels, pointing to strong fuel demand during the summer driving season.