It feels like a very long time ago that investors would invariably end up buying the familiar five of Apple, Microsoft, Amazon, Google and Meta whenever they were unsure where else to put their money. That was before we humans acquired the ability to generate endless streams of cute kitten images, wiping out in a few minutes all the energy-saving efforts amassed over a lifetime. In April 2026, the big tech names are still in favour, but they no longer enjoy quite the same aura now that they have to spend heavily to protect future profits. The market's new idols are semiconductor manufacturers. The sector used to move with the economic cycle. Now powered constantly by demand stemming from AI, semiconductors are attracting investors the way strange little seeds attract middle-class hipsters.

It must be said that separating AI's winners from its losers is no small task. In that environment, backing the indispensable links in today's supply chain, and most likely tomorrow's too, is far from a foolish strategy. The PHLX Semiconductor Index, which as its name suggests tracks the semiconductor industry, has now risen for 14 straight sessions. The last time this happened was in 2002. The renewed rise in AI-related stocks shows that the market is trying to shift its focus away from the conflict in the Middle East.

On that front, calming statements are alternating with fresh outbursts. The Strait of Hormuz remains more or less sealed off, but the market believes that negotiations due to resume today in Pakistan will eventually produce some form of agreement. That is why oil has reacted only modestly to the latest exchange of verbal blows between the United States and Iran. US Vice-President JD Vance has reportedly been sent back to Islamabad to lead the talks. Chinese President Xi Jinping, relatively quiet in recent weeks, has nonetheless called for normal traffic through the strait to be restored. As a major buyer of Middle Eastern oil and gas, China has no interest in seeing the conflict drag on for too long.

The rest of the news agenda is being driven by the accelerating pace of first-quarter earnings releases. Not yet in the United States, where companies seem to have collectively decided to begin on Wednesday, but rather in Europe, with Thales, ASM International and Beiersdorf among those reporting today. On the corporate side, the other notable development is the formal start of the succession process for Tim Cook at Apple. In post since 2011, Cook will become executive chairman in September. The chief executive role, meanwhile, is being handed to John Ternus, who currently oversees the group's hardware division. The choice comes as no surprise, but nor does it amount to the shake-up some had hoped to see at the iPhone maker. In The Information, Martin Peers summed up the situation in a single sentence: "shareholders fear that Ternus, who has spent most of his life at Apple and described Cook in today's announcement as a mentor, will continue with the cautious approach adopted by Cook."

The other major market event of the day is Kevin Warsh's hearing before the US Senate Banking Committee this afternoon. The likely successor to Jerome Powell as chair of the Federal Reserve is about to face his moment of truth. The ground has already been partly prepared by leaks about the content of his remarks. He is reportedly expected to emphasise the independence of both monetary policy and the institution itself. That is hardly surprising: Warsh will need to strike a delicate balance between the demands of Donald Trump, who selected him, and the credibility of the institution he is set to join. His path to confirmation is far from straightforward, as I noted in this column yesterday: one Republican senator, whose vote is crucial, intends to block the process until the proceedings targeting Jerome Powell, the current Fed chair, have been dropped. In that senator's view, they are purely political and entirely without merit.

Across Asia-Pacific, gains are the norm, except in Australia, where the ASX is giving up a few more points. South Korea and Taiwan, both heavily exposed to technology, are up more than 2%. Japan is gaining 1.1% for the same reason. Hong Kong is limiting its advance to 0.6%. European futures are pointing higher.

Today's economic highlights:

On today's agenda: in the United Kingdom, employment change, average earnings including bonuses, and the unemployment rate will be released; the balance of trade will be announced in Switzerland and Spain; the ZEW Economic Sentiment Index will be available for the Euro Area and Germany; in China, foreign direct investment will be examined. In the United States, retail sales, business inventories, and pending home sales will be in focus, followed by the Fed Waller's speech and the API crude oil stock change. See the full calendar here.

  • GBP / USD: US$1.35
  • Gold: US$4,781.53
  • Crude Oil (BRENT): US$94.43
  • United States 10 years: 4.25%
  • BITCOIN: US$75,807.6

In corporate news:

  • Rio Tinto reported a 13% increase in Q1 Pilbara iron ore production and a 9% rise in copper production, while reaffirming its 2026 production guidance.
  • Renishaw raised its full-year guidance, projecting revenue between GBP775 million and GBP805 million and adjusted pretax profit of GBP145 million to GBP165 million.
  • Commerzbank has officially rejected UniCredit's bid, which it considers hostile.
  • Rolls-Royce has secured a long-term maintenance contract for the US Coast Guard's patrol vessels.
  • Roche has announced that the FDA has accepted its application for a licence for a treatment for systemic lupus erythematosus.
  • Apple has appointed John Ternus as CEO, with Tim Cook becoming executive chairman.
  • Amazon is strengthening its partnership with Anthropic with an investment of up to $25 billion.
  • General Motors urges its shareholders to reject the proposal to separate the roles of chairman and CEO.
  • ServiceNow completes the acquisition of Armis.
  • Ethiopian Airlines announces the acquisition of six Boeing 787-9 Dreamliners.
  • Uber Technologies declares an 11.52% passive stake in Lucid Group.
  • Today's key earnings: GE Aerospace,ASM International, Beiersdorf, Associated British Foods, BAWAG, SKF…

See more news from UK listed companies here

Analyst Recommendations:

  • Lloyds Banking Group Plc: Mediobanca maintains its outperform rating and reduces the target price from GBX 131 to GBX 125.
  • Barclays Plc: Mediobanca maintains its neutral recommendation and reduces the target price from GBX 520 to GBX 500.
  • Standard Life Plc: RBC Capital maintains its outperform recommendation and raises the target price from GBX 800 to GBX 870.
  • Unilever Plc: RBC Capital upgrades to sector perform from underperform with a target price of GBX 4200.
  • Relx Plc: Barclays maintains its overweight recommendation and raises the target price from GBP 30.75 to GBP 30.95.
  • Informa Plc: Barclays maintains its overweight recommendation and reduces the target price from GBP 10.40 to GBP 10.20.
  • Baltic Classifieds Group Plc: JP Morgan maintains its underweight recommendation and reduces the target price from GBP 1.82 to GBP 1.78.
  • Quilter Plc: JP Morgan maintains its overweight recommendation and reduces the target price from GBP 2.12 to GBP 2.06.
  • St. James's Place Plc: JP Morgan maintains its overweight recommendation and reduces the target price from GBP 17.11 to GBP 16.86.
  • Easyjet Plc: AlphaValue/Baader Europe downgrades to add from buy and reduces the target price from GBX 610 to GBX 470.