"In Europe, the gains seen across the board seems to signify a case of dip buying after recent declines, with a wide breadth of stocks gaining ground rather than a single sector or narrative."
"Particular weakness has been evident on the residential side of the construction sector (37), with the rate of decline gathering pace amid weak order books and a lack of new projects."
"Notably, while the Strait of Hormuz remains largely closed, we have seen Saudi Arabia ramp up the re-routing of oil through the East-West pipeline to the red sea, effectively bypassing the Straits and lessening the impact of the current disruption."
"This is clearly a sign that many believe we could see a sudden resolution to the conflict which sends prices sharply lower. However, while we are in a lull after initial gains, a continuation and expansion of the conflict"
Market sentiment has improved following strong Asian performance, with the Korean KOSPI posting a 10% gain amid volatile trading. European markets demonstrate broad-based gains across multiple sectors, indicating dip-buying activity rather than sector-specific momentum. UK construction data reveals concerning trends, particularly in residential building with a PMI of 37, driven by weak order books and elevated input cost inflation reaching levels unseen since July 2025. Housebuilder Taylor Wimpey projects continued earnings declines in 2026 following halved annual profits, citing budget uncertainty. Oil markets remain relatively stable below $80 despite geopolitical tensions, as Saudi Arabia reroutes crude through the East-West pipeline to bypass the largely closed Strait of Hormuz, suggesting market expectations of potential conflict resolution.
#market-sentiment #construction-sector-weakness #oil-markets-and-geopolitics #asian-stock-performance #uk-economic-data
Read at London Business News | Londonlovesbusiness.com
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