The FTSE fell again on Thursday as oil prices jumped back above $100 with little progress in talks between the US and Iran.

Oil prices reflected the generally cautious mood in markets currently, with Brent trading at $104.

The risk for equity bulls is, and has been for some time since the ceasefire was first announced, that an agreement between Iran and the US takes a long time to thrash out, and more barrels of oil are removed from global supply.

Some analysts estimate that around 1 billion barrels of supply have been lost due to the war.

As we saw with UK inflation data this week, higher oil prices are starting to filter through into economic data, risking tighter monetary policy for the rest of this year. 

We’re seeing signs of this realisation this week with declines in the FTSE 100, which was down again on Thursday, losing around 0.9%.

“Even though equity markets have been remarkably resilient of late, oil prices above $100 a barrel are a reminder to investors that the Middle East conflict still presents an inflation risk,” said Dan Coatsworth, head of markets at AJ Bell.

“There continue to be mixed messages around peace talks, creating an air of uncertainty that periodically stops investors in their tracks. It’s one of those days where investors have dialled back risk appetite to consider what could go wrong, rather than shrugging off the backdrop of conflict to bid markets higher.”

FTSE 100 movers

Around 80 of the FTSE 100’s constituents were trading negatively at the time of writing.

Sainsbury’s was firmly among the worst performers of the session after warning of the impact of the war in Iran on its customers. 

Adam Vettese, market analyst for eToro, said: “shares opened significantly lower after management issued a cautious outlook for the year ahead.”

“Retail underlying operating profit edged 1.1% lower to £1.025 billion amid cost inflation and heavy investment in value. Total underlying operating profit is guided at £975 million – £1.075 billion, reflecting uncertainty from the Middle East conflict, which CEO Simon Roberts noted is making customers even more cost conscious while disrupting supply chains.”

Ex-dividends played a role in the FTSE 100’s performance on Thursday after names such as Legal & General, Fresnillo and BAE Systems lost the right to their upcoming dividend payments.

Minor gains in defensive stocks such as BT, SSE and Unilever underscored a risk-off tone for stocks on Thursday.

London Stock Exchange Group

The London Stock Exchange Group shares were 1% higher after the company released a trading statement focused on the rollout of AI services, which should help cement the view that LSEG is going to be a beneficiary rather than a casualty of the AI revolution.

“LSEG spent their FY25 results highlighting how AI is an enabler for their business, vs a threat to positive market reaction over the time period following,” said Max Harper, Senior Analyst at Third Bridge.

“Our experts agree with management broadly, highlighting that LSEG everywhere allows them to cover multiple leading horses in the race, in the form of LLMs such as Claude, where LSEG wouldn’t have the budget to compete on their own platform.

“LSEG could see income compression as clients shift from per-seat licenses to usage-based AI revenues, with Phase 1 up to 2027, offering stable revenues, with early API revenues. 2027 onwards could see income pressure, with AI benefits being felt, and AI cutting seat-based revenue. Phase 3, as early as 2029, should unveil winners, with our experts predicting LSEG could be better positioned, based on their LSEG everywhere strategy, as LSEG and competitors such as Bloomberg, S&P, and Factset, adapt to a AI usage-driven world.”

Analysis for informational purposes only. Capital at risk.

A premium SUV offering Range Rover aesthetics for nearly half the price.

Many assumed that deep-rooted brand loyalty would provide a natural buffer against aggressive pricing from untested entrants.

The retail data indicates otherwise.

In under two years, Chinese automaker Chery has captured the second-largest market share in the UK.

In 1Q26, Chery’s brands (Chery/Omoda/Jaecoo) collectively commanded the No. 2 position in the UK auto market with 5.9% market share, ahead of BMW, Kia, Ford and just behind Volkswagen.

In March 2026, its premium Jaecoo 7 SUV officially topped the national monthly sales charts.

Chery achieved this by executing a fast-fashion playbook: delivering the presence and features of an premium vehicle at a disruptive price.

Jaecoo 7: The “Baby Range Rover”

In March 2026, Chery’s Jaecoo 7 premium SUV displaced the Ford Puma at the top of the UK monthly sales charts.

The Jaecoo 7’s appeal is simple: executive presence at an accessible price.

• Informally dubbed “Baby Range Rover” for its bold, boxy design, the Jaecoo 7 starts at ~£29k vs. the £55k+ feel it projects.
• The entry-level model features a 13.2-inch touchscreen, 19-inch rims, a 360-degree camera system, and a panoramic sunroof, with the top trim adding a 14.8-inch display and ventilated seats.
• PHEV with ~56 miles electric range and 0–62 mph in ~8.5s.
• A seven‑year/100,000‑mile warranty—reducing buyer hesitation toward a newer brand.

Chery Auto At a Glance

Chery Auto (9973 HK) is the second largest domestic passenger vehicle maker in China. One thing that sets Chery apart from other Chinese auto maker is its export focus – it is the No. 1 passenger vehicle exporter in China for 22 consecutive years, with overseas sales accounting for about 50% of total revenue.

In the UK, it operates three distinct brands, offering a comprehensive product portfolio targeting different market segments.

• Omoda: Positioned as the design-forward, accessible brand, focusing on stylish, modern crossovers like the Omoda 5.
• Jaecoo: Pitched as the more premium, rugged alternative, delivering high-specification executive SUVs like the Jaecoo 7.
• Chery: The Tiggo SUV lineup focuses on its ‘Super Hybrid’ (CSH) petrol-electric powertrains, targeting buyers who prioritise extended range and fuel economy.

In 2025, it achieved 11% and 35% revenue and profit growth driven by 15% volume growth (33% export volume growth).

Structural Shift

This disruption isn’t just Jaecoo.

Over the past year, market share has shifted away from incumbents (VW, BMW, Kia, Ford) toward Chinese OEMs such as BYD, Jaecoo (Chery) and Omoda (Chery), Leapmotor, and Geely.

What we’re seeing is a structural trend driven by several factors.

Vertical Integration and Cost Advantage

Chinese entrants leverage deep vertical integration to compress costs.

While legacy automakers assemble vehicles using a variety of third-party suppliers, Chinse automakers such as BYD and Chery controls their supply chains such as battery to reduce input cost. For example, Chery has development its proprietary “Rhino” battery architecture.

In addition, to lower export bottlenecks, Chery partnered with Wuhu Shipyard to construct and operate its own fleet of cargo vessels.

The result: BYD and Chery were able to achieve superior profitability against major European peers such as Volkswagen and Stellantis while maintaining competitive pricing at the same time.

Financial Engineering and Demand Stimulation

In addition to pricing, Chinese automakers also leverage their strong balance‑sheet to make ownership cheaper:

• Subvented finance packages produce materially lower monthly payments (up to ~25% in some comparisons).
• Generous trade‑in valuations create immediate, cash‑like incentives at point of sale.

These mechanics lower the effective barrier to switching from legacy brands.

Winning Dealer Hearts

Fractured dealer relations among legacy OEMs opened a distribution opportunity for Chinese automakers.

Over the past few years, legacy OEMs, including Ford and Stellantis, attempted to force traditional dealers into low-margin “agency” sales models.

Although these legacy OEMs have later abandoned this model, the damage to dealer relations was already done.

Chinese automakers like Chery captured this opportunity. By offering traditional and profitable franchise terms, Chinese automakers rapidly expanded their distribution network.

In just about 2 years, Chery has rapidly established over 140 sites in the UK across its brands (Omoda/Jaecoo/Chery).

The Petrol Price Catalyst

Recent energy volatility has amplified appetite for PHEVs and BEVs. Faced with higher retail fuel prices, buyers are accelerating the switch to electrified models—precisely where competitively priced Chinese offerings are focused.

This is illustrated by Jaecoo’s strong sales volume in March (12K), which accounted for 63% of its total sale volume in 1Q26.

Tariff Hedges via Localisation

To mitigate trade‑barrier risk, Chinese OEMs are localising manufacturing in Europe:

BYD expanding production in Hungary and Turkey.

Chery creating assembly capacity (e.g., a JV in Barcelona) and increasing local content. It is also seeking partnerships with European car makers to expand its production capacity.  For example, it is reportedly exploring local UK assembly via partnership with Nissan regarding the use of its facility in the UK.

This article is a “periodical publication” for information only and is not investment advice or a solicitation to buy or sell securities. This article does not constitute a “personal recommendation” or “investment advice” under UK FCA regulations. Investing in equities involves significant risk. The author holds NO position in the securities mentioned. There is no warranty as to completeness or correctness. Please do your own due diligence or consult a licensed financial adviser. Please read the Full Disclaimer before acting on any information. Images created with the assistance of Gemini AI.

Article provided by Asia Pulse.

Sainsbury’s shares were lower on Thursday as investors checked out following a warning on the impact of the Middle East war on its customers.

The warning overshadowed what was otherwise an upbeat set of preliminary results, with grocery sales rising 5.2% to drive total Sainsbury’s sales (ex-fuel) to £25.9bn, up 4.9%.

Retail underlying operating profit came in at £1,025m for 25/26, marginally down on last year as the group chose to absorb cost inflation rather than pass it all through, alongside a 5% pay rise for colleagues and continued investment in price.

“Sainsbury’s is enjoying some time in the sun, hitting upgraded profit expectations thanks to solid revenue growth and gains in volumes and market share,” explained Duncan Ferris, Investment Writer at Freetrade.

“But conflict-led uncertainty, and its impact on consumers, is clouding things for the supermarket, with its guidance leaving room for a further drop in annual operating profits and a weaker free cash flow.”

Guidance for 2026/27 is total underlying operating profit of £975m–£1,075m, with retail free cash flow expected to top £500m. The fairly wide range of the profit outlook means Sainsbury’s could see profits fall over the next year.

This was unacceptable for some investors who may look to Sainsbury’s for relative stability and reliability, and shares were down around 5% on Thursday.

“While free cash flow remains robust and the progressive dividend offers an attractive yield, there is now some more uncertainty on the horizon. Many investors will have had a good run in Sainsbury’s over the last 2 years, and this update may be triggering some profit taking,” said Adam Vettese, market analyst for eToro.

SEGRO has opened 2026 on a firm footing, contracting £23m of new headline rent in the first quarter and pushing ahead with its data centre ambitions despite a choppier geopolitical backdrop.

Of the £23m signed, £11m came from the existing portfolio as vacant space was leased and reversion captured, with the remaining £12m from development lettings. UK rent reviews, renewals and regears delivered a standout 38% uplift, pulling the group average to 19% and highlighting the mark-to-market rent still sitting in the portfolio.

Customer retention held at 83% and occupancy was broadly stable at 94.8%, helped by vacancy reductions in London and speculative completions in Germany, where multiple lease negotiations are now underway.

Development activity remains a key growth lever. Schemes under construction or in advanced negotiation represent £73m of potential rent at a 7.6% yield, with two-thirds already pre-let.

SEGRO reiterated its £450m–£550m development capex guidance for the year. Completions in Q1 totalled 40,000 sq m, generating £4m of headline rent, 37% of which is leased, a slightly lower mix reflecting the weighting towards urban speculative schemes.

Like its peer, British Land, which also recently provided an update, SEGRO is becoming an indirect beneficiary of the rapid expansion of AI through growing demand for office and warehouse space by companies operating in the sector.

In terms of new data centre leases, SEGRO has signed a 30,000 sq m powered shell pre-let on the Slough Trading Estate, secured planning for its first fully fitted 56MW data centre in West London, and is progressing power upgrades in Slough.

Capital recycling continues to fund future growth, with £106m of disposals completed at a premium to book value and a further £138m to be exchanged later in the year.

EnSilica has signed two landmark development contracts with a leading European satellite operator, in what the fabless chipmaker is calling its largest long-term potential supply opportunity to date.

The deals cover two chips for the operator’s next-generation satellite network, spanning both payload and user-terminal silicon and combining ASIC and ASSP solutions.

Today’s contracts are set to deliver a material near-term revenue boost and could prove to be a game-changer over the long term.

On the user terminal side alone, the supply opportunity could exceed $50m from 2030 onwards, once the network is deployed and scaled. In the near term, the contracts generate $6.8m in non-recurring engineering revenue starting in FY26 and running into FY28, with the potential to unlock up to an additional $3m in matched funding from the UK Space Agency.

The payload chip has already cleared its study phase and moved into funded development, with supply revenues on that side still to be negotiated.

The customer is developing a communications system to improve resilience, flexibility and coverage across commercial, government and defence applications, with initial services targeted for the end of the decade.

Phased development runs over the next two and a half years.

Ian Lankshear, CEO of EnSilica, said “The award provides significant industry validation for EnSilica and we are very proud of our technology being selected for this major Space programme following extensive joint study phases. In addition, the scale and structure of the project means that it will generate attractive short term NRE revenues with the potential for substantial long-term supply revenues.”

Innovative Eyewear has opened 2026 with its strongest start to a year on record, posting preliminary first-quarter sales of around $0.81m.

This is up roughly 78% year-on-year and the eleventh consecutive quarter of growth.

Crucially, the pace of growth is accelerating rather than cooling with the smart eyewear group posting 63% growth across the whole of 2025.

Should the momentum continue, the firm could be on for revenue of $4m+, if the seasonal impact on sales is taken into consideration. Innovative Eyewear, like most consumer facing firms, tends to enjoy an uptick in sales in the fourth quarter.

The leading protagonist in the growth story is Lucyd Armor, the company’s smart safety glasses range, which has just picked up both the 2026 Red Dot Design Award and the NHPA Retailer’s Choice Award.

Innovative Eyewear says Armor now commands around 44% of the smart safety glasses category on Amazon, and says it remains the only product in the segment carrying full safety certification across the US, Canada and the EU.

The group is now setting its sights on the industry for further growth.

On that front, DHL, Do It Best / True Value and Thermo King are all trialling Lucyd products for workforce use. The company is also in talks with big-box retailers, traditional optical chains, and hardware and automotive chains about rolling Armor and the Reebok Powered by Lucyd line onto shelves in the US and Canada through 2026. A newly launched white-label offering has already landed its first committed customer for a smart safety glasses line.

Margins are moving in the right way too, with Q1 gross margins materially ahead of the 2025 full-year level as previously flagged tariff mitigation measures bed in.

CEO Harrison Gross described the quarter as the company’s strongest start to any year, flagging Armor’s workforce connectivity features as having “excellent market fit”. Results remain subject to audit.​​​​​​​​​​​​​​​​

Digital transformation services provider TPXimpact (LON: TPX) exceed expectations in the year to March 2026. Cavendish now expects pre-tax profit to double to £6.7m with a further upgrade to £8.1m next year based on improving margins. The share price jumped 14.9% to 42.5p.

Concierge services technology platform provider Ten Lifestyle (LON: TENG) reported interim figures in line with the recent trading statement and said that digital contracts won in recent months mean that profit will be better than expected next year leading to forecast upgrades. Interim revenues were 6% ahead at £33.7m, or 9% in constant currency. Underlying pre-tax profit improved from £1m to £1.6m, although that is before an £800,000 loss on foreign exchange, mainly from Latin American currencies, compared with a £100,000 gain in the corresponding period. Cash was generated after capitalised spending on technology. Net cash was £9.3m at the end of February 2026. Active members that use the service at least once in the year are 23% higher at 436,000. The focus has previously been on high net worth individuals. Investment in digital services will broaden the potential market due to improved efficiency and increased personalisation. The Middle East is a small part of the business and there has not been a significant impact on group performance.  Full year pre-tax profit is expected to be £5.7m. The 2026-27 figure was previously £7.2m. The share price increased 12.2% to 83p.

Oil and gas company Kistos (LON: KIST) says pro forma production for the first quarter was 21,800boe/day, while full year guidance is 19-21,000boe/day. Net debt was $78m. There are plans to issue a $300m four-year senior secured bond to refinance the existing $282m. The acquisition of producing assets in Oman is near completion and this oil and gas is exported via the Arabian Sea and not through the Strait of Hormuz. The share price rose 11.3% to 295p.

hVIVO (LON: HVO) has won a phase 3 human challenge trial for ILiAD Biotechnologies, which should be its largest ever HCT by value. This is the first phase 3 trial undertaken in Bordetella pertussis, which causes whooping cough and related diseases. Revenues will be generated this year and in 2027. The share price improved 3.8% to 9.55p.

FALLERS

Alien Metals (LON: UFO) joint venture partner West Coast Silver announced a JORC compliant 2.79 million ounces mineral resource estimate for the Elizabeth Hill silver project. The cut off was 20g/t. The share price has been rising in the past month, but it lost some of those gains and is down 15.2% to 0.14p, which is still 16.7% higher over five days.

LBG Media (LON: LBG) says direct business is growing due to demand for content by brands, but indirect business has been hit by social media algorithm changes. The change in mix has hit margins. Interim revenues rose 19% to £52.4m. EBITDA fell from £12.2m to £8m. Net cash was £28.4m at the end of March 2026. The share price dipped 11.9% to 47.2p.

Telematics services provider Quartix (LON: QTX) grew annualised recurring revenues 12% year-on-year to £38.6m in the first quarter. A price increase will boost revenues when contracts are renewed this year. Pre-tax profit is expected to improve from £8.7m to £10.1m. Profit-taking knocked 11.1% off the share price at 247.5p.

Retailer Shoe Zone (LON: SHOE) says trading conditions continue to be difficult because of the weak consumer market that has been made worse by concerns relating to the Middle East conflict. Guidance has been downgraded to a loss of between £1m and £2m for this year with another loss expected next year. Net cash should be £7m at the year end. The share price fell 7.77% to 47.5p.

Billing and CRM software provider Cerillion (LON: CER) reported an 14% dip in first half revenues to £18m, but new order intake doubled to £39.6m. This means that there will be an even greater second half weighting this year. Management believes it can still achieve the forecast full year pre-tax profit improvement from £21.8m to £23.2m. The interims will be published on 1 June. The share price declined 5.59% to £13.90.