Stocks tick higher as hopes rise for US-Iran peace deal

Yahoo Finance’s David Hollerith writes:

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Checking in on how US market futures are performing ahead of the opening bell in New York, and contracts on the main indices edged higher as investors monitored developments in the Middle East conflict.

S&P 500 (ES=F) futures edged up 0.2%, while those on the Nasdaq 100 (NQ=F) gained 0.3%. Contracts on the Dow Jones Industrial Average (YM=F) advanced 0.1%.

On the Paris bourse, luxury group LVMH (MC.PA) was in focus, with shares down 2.4% after the French company reported weaker-than-expected sales growth in the first quarter.

LVMH said that revenue increased by 1% in the first quarter, coming in at €19.1bn, though this was below consensus expectations for 2% growth.

On a regional basis, LVMH said that the US had a good start to the year, while resilient local demand helped to partly offset lower tourist spending in Europe and Japan. The company said it saw strong growth in the rest of Asia.

LVMH added that its business in the Middle East was affected by the conflict in March, following a positive start to the year. The company said that the conflict negatively impacted organic growth for the quarter by around 1%.

Product testing company Intertek (ITRK.L) was the biggest riser on the UK’s blue-chip index on Tuesday morning, with shares jumping more than 12%, after the firm said it was exploring the possible split of its business.

Intertek said on Tuesday that it had launched a strategic review to determine whether it would be better to separate its testing and assurance businesses from its energy and infrastructure divisions. The company said it would evaluate the potential separation of the energy and infrastructure divisions, either through a sale or a demerger.

Dan Coatsworth, head of markets at AJ Bell (AJB.L), said: “Hiving off the energy and infrastructure arm would allow Intertek to have a tighter focus on fewer industries.

“Having a sprawling empire might sound grand, but the modern world has taught businesses that sometimes less is more.”

Tobacco giant Imperial Brands (IMB.L) was the biggest faller on the FTSE 100 (^FTSE) on Tuesday morning, as its first-half trading update failed to impress investors.

Imperial shares fell nearly 7% after the company reiterated its guidance for the year, saying it expected to deliver low-single-digit tobacco and double-digit next generation product (NGP) net revenue growth in 2026.

The company guided to 3% to 5% group adjusted operating profit growth for the year and at least high-single-digit earnings per share (EPS) growth.

For the first half, Imperial said it expected to deliver low-single-digit percent growth in tobacco & NGP net revenue.

Derren Nathan, head of equity research at Hargreaves Lansdown, said: “With full-year guidance intact, Imperial is setting out its stall as a strong defensive investment, and despite a note of caution, it has seen no material business impact from this year’s tumultuous geopolitical events.”

“Imperial’s ability to sustain modest growth and impressive cash generation over the long term will depend on its rollout of NGPs, and here execution looks to be improving as it focuses on its strongest markets.”

Oil major BP (BP.L) said on Tuesday that it expected its oil trading result for the first quarter to be “exceptional”, following weakness at the end of last year.

In a trading update, published Tuesday, BP said that reported upstream production is expected to be broadly flat compared the fourth quarter.

The company anticipated that net debt would be in the range of $25bn to $27bn at the end of Q1, compared to $22.2bn at the end of the previous quarter.

The trading statement has given investors an idea of what to expect when BP releases its full results for the first quarter, scheduled to be published on 28 April.

BP shares edged 0.5% lower on Tuesday morning, as softer oil prices weighed on shares, though the stock is up 33% year-to-date.

Victoria Scholar, head of Investment at Interactive Investor, said: “The close ties between BP’s fate and the oil price can be a blessing and a curse. Shares have been an undeniable standout stock market winner this year, rallying over 30%.”

“However it means the company is also highly vulnerable to forces beyond its control,” she added. “The recent inverse correlation between the oil price and broader equities underscores the value of commodities and commodity stocks as a valuable component of a diversified portfolio during an inflationary energy shock.”

UK retail sales increased 3.6% year-on-year in March, according to data released by the British Retail Consortium (BRC) on Tuesday.

That figure was above the 12-month average of 4.3% growth and compared to annual increase of 1.1% recorded in March last year.

The biggest increase came from food sales, which were up 6.8% year-on-year in March, versus annual growth of 1.6% recorded in the same month last year.

Non-food sales increased by 0.9% year on year in March, against a growth of 0.6% in March 2025.

“An early Easter provided a much-needed boost to food sales as families came together over the long weekend,” said Helen Dickinson, CEO of the BRC. “Non-food performance was more uneven: demand was robust for computers, toys, and homeware, but clothing and footwear continued to struggle.”

Oil prices declined on Tuesday morning, on hopes that the US and Iran will resume peace talks. Brent crude futures (BZ=F) were down 1% to $98.28 a barrel at the time of writing, while West Texas Intermediate futures (CL=F) fell more than 2% to $96.92 per barrel.

Lale Akoner, global market analyst at eToro, said: “Oil’s move back below $100 may suggest easing tensions, but we think that the underlying supply dynamic still signals that oil could continue to rise.”

“A meaningful share of Persian Gulf supply is already missing from the market, with inventory drawdowns and softer demand absorbing the shock,” she said. “As the last pre-blockade cargoes clear the system in the upcoming days, the market loses its cushion.”

Akoner added: “For now, prices are anchored by expectations that diplomacy will progress. Our view is that fundamentals will reassert themselves. If supply constraints persist, oil is more likely to move higher from here than lower.”

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