UK equities traded cautiously, with the FTSE blue-chip index easing after a sustained run of gains. Strength among mining companies helped offset weakness in energy shares, while the broader European market edged higher as falling oil prices provided some relief to bond markets. Investors remained focused on developments around the Strait of Hormuz, where renewed diplomatic engagement between Iran and Oman raised hopes of improved shipping access. Sentiment across the region was nevertheless restrained ahead of Nvidia’s results and further signals on the outlook for US monetary policy.

US markets opened on a subdued footing following a slightly stronger-than-expected reading from the Federal Reserve’s preferred inflation measure. The data reinforced concerns that inflation remains persistent and supported expectations that US interest rates may need to remain restrictive. Major indices subsequently struggled for direction as investors balanced the inflation outlook against continued resilience in parts of the economy. Attention is firmly centred on Nvidia’s forthcoming earnings, which are expected to provide an important test of confidence in artificial-intelligence investment and technology-sector valuations.

Asia-Pacific markets were generally firmer, with gains across Japan, mainland China, Hong Kong and South Korea. The regional tone benefited from the retreat in oil prices and accompanying easing of concerns around global inflation and financing conditions. Investors nevertheless remained selective ahead of major US technology earnings and further guidance from central bankers, while geopolitical developments in the Middle East continued to influence risk appetite across commodity-sensitive markets.

Oil prices extended their recent decline as markets responded to signs that diplomatic discussions could facilitate greater movement of energy supplies through the Strait of Hormuz. The prospect of improved shipping access has reduced some of the geopolitical risk premium that had previously driven crude sharply higher. While tensions between the United States and Iran remain an important source of uncertainty, the latest retreat in energy prices has provided welcome relief to global bond markets and reduced immediate concerns over another energy-driven acceleration in inflation.

Gold weakened modestly but remained close to its recent multi-month highs. Bullion faced pressure from a firmer dollar and renewed upward movement in US Treasury yields following the inflation release, although underlying demand continues to be supported by geopolitical uncertainty and questions surrounding the future direction of monetary policy. Investors are now looking towards the Jackson Hole gathering for additional indications about the Federal Reserve’s approach to persistent inflation and interest rates.

Hochschild Mining was among the strongest performers in London after publishing interim results showing a substantial improvement in profitability, supported by elevated precious metal prices. The miner reported materially stronger revenue and earnings and moved into a net cash position, while reiterating its production outlook. Investors responded positively despite higher operating cost expectations, with the company’s development pipeline and improving financial position helping reinforce confidence in its medium term prospects.