Daily market update: FTSE 100, oil, gold, Boeing, Adobe

“The FTSE 100 did not have long to bask in the glory of reaching a new record close last night with Israel’s military strikes on Iran putting stocks on the back foot globally,” says AJ Bell Investment Director Russ Mould.

“Concern about an escalating conflict in the Middle East saw oil hit its highest level since January and gold was also in demand for its safe haven qualities. After falls in Asia overnight and Europe this morning, futures markets are pointing to losses on Wall Street later too.

“The surge in crude provided FTSE 100 heavyweights BP and Shell with a boost which, along with gains for precious metals outfits Endeavour Mining and Fresnillo, spared the index from some of the heavier losses seen elsewhere.

“Airline stocks, predictably, were under pressure given the implications for fuel costs. Also in the aviation sector, Boeing shares were weak overnight amid the fall-out from the devastating Indian air crash involving one of its planes.

“Later we will get a fresh reading of US consumer sentiment, to see if the recent improvement, as tariff fears eased, has been sustained.”

Adobe

“Creative software company Adobe may have beaten forecasts with its revenue and earnings and upped full-year guidance but to little avail with investors.

“There is clearly lingering scepticism about the company’s ability to benefit from artificial intelligence and over the pressure on the business as companies cut their software budgets. Companies are tightening their belts amid higher for longer interest rates and broad economic uncertainty.

"Adobe has attempted to ride the AI wave, launching generative AI tools but it is not alone in this and faces intense competition from the likes of Google and OpenAI.

“It faces an uphill battle to convince the market there is strong demand for its recent innovations and that they can be profitable. Ultimately it comes down to whether AI proves to be an opportunity or a threat for the business, for the time being, the market seems to view it as the latter.”

These articles are for information purposes only and are not a personal recommendation or advice.