UK and European equities traded with a modestly positive bias, although gains remained restrained by geopolitical uncertainty and renewed concerns over energy-led inflation. London’s leading index was supported by strength in selected telecommunications and corporate-action names, while broader European markets were mixed as investors assessed the outlook for monetary policy, regional inflation and Middle East developments. Sentiment remained constructive but cautious, with elevated bond yields continuing to limit appetite for more highly valued sectors.

US opened on a mixed footing following the previous session’s technology led advance. Semiconductor shares remained an important source of support as investors focused on the US market debut of SK Hynix, while stronger-than-expected corporate results from Delta Air Lines and WD-40 provided further evidence of resilient company earnings. Nevertheless, rising energy costs and persistent uncertainty surrounding US Iran relations tempered risk appetite and left technology-heavy indices under some pressure.

Asia-Pacific markets delivered a varied performance. Japanese and Hong Kong equities advanced, while South Korean shares outperformed as enthusiasm surrounding artificial intelligence and memory chip demand continued to support the technology sector. Mainland Chinese markets weakened, reflecting a more cautious domestic outlook, while Australian equities moved higher. The regional picture remained divided between technology driven optimism and ongoing concerns over Chinese growth and global trade conditions.

Oil prices remained elevated and were positioned for a strong weekly advance as renewed exchanges between the United States and Iran revived concerns over supply disruption in the Gulf. Although improved tanker movements through the Strait of Hormuz have helped global supply recover, refinery activity and fuel exports remain constrained.

Gold traded slightly lower as higher government bond yields and expectations of persistently restrictive US monetary policy reduced the appeal of the non yielding metal. Safe-haven demand continued to provide underlying support amid geopolitical uncertainty, but inflation concerns associated with rising oil prices strengthened the case for interest rates to remain elevated.

EasyJet shares rallied after private equity group Apollo submitted a superior takeover proposal, displacing the airline’s earlier agreement with Castlelake. The board indicated that it was minded to recommend Apollo’s approach, which offers additional capital to support fleet modernisation and the company’s longer-term low-cost growth strategy. The competing proposals leave open the possibility of further bidding activity before a formal transaction is concluded.