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European stocks opened generally lower on Tuesday, but FTSE 100’s Centrica enjoyed a boost as it announced it will buy an equity stake in Sizewell C, a nuclear power station under construction in Suffolk. The FTSE 100 index opened down 4.19 points, 0.1%, at 9,008.80. The FTSE 250 was down 38.63 points, 0.2%, at 21,973.83, and the AIM All-Share was up 0.87 points, 0.1%, at 771.75. The Cboe UK 100 was marginally lower at 898.19, the Cboe UK 250 was down 0.1% at 19,322.42, and the Cboe Small Companies was slightly higher at 17,704.02. In European equities on Tuesday, both the CAC 40 in Paris and the DAX 40 in Frankfurt shed 0.4%. SPI Asset Management analyst Stephen Innes commented: ‘Markets have been swaggering through the tariff thicket like they’ve seen this movie beforechest out, chin up, calling every headline a bluff. But that bravado may be running on fumes. With the August 1 tariff deadline looming and no meaningful trade deals inked, the stage is set for a rude awakening. The market’s collective shrug might soon give way to a flinchor worse, a stampede.’ UK public sector net borrowing was higher than expected in June, figures released by the Office for National Statistics showed on Tuesday. Public sector borrowing totalled £20.68 billion in June, exceeding an FXStreet-cited consensus for £15.6 billion and up from £17.44 billion in May. It was the second-highest June borrowing since monthly records began in 1993, after that of June 2020, the ONS noted. It was also more than the £17.1 billion forecast by the Office for Budget Responsibility in March. Borrowing for the three months ended June 30 was £57.8 billion, up £7.5 billion from the year before and the third-highest April to June segment since monthly borrowing began, after 2020 and 2021. Also, it reported the current budget deficit was £44.5 billion in the three months to June, which was £6.5 billion higher on-year. Monthly, the deficit was £16.3 billion in June, which was £7.1 billion more than the year before. ‘Blowing past borrowing expectations is becoming the norm, and that fact that borrowing is surging compared to a year ago, could be seen as a sign that the government has lost control of the UK’s public sector finances. However, it cannot all be blamed on Rachel Reeves. The Office for National Statistics blamed the increase in borrowing on the rising costs of providing public sector services, this includes pay rises given to public sector workers in the past year. It also said that the cost of servicing our debts rose significantly last month, as the interest paid on index-linked gilts helped to push up overall spending,’ XTB analyst Kathleen Brooks commented. Meanwhile, UK Chancellor Rachel Reeves has said a review into raising the state pension age is needed to ensure the system is ‘sustainable and affordable’. The government review is due to report in March 2029 and Reeves said it was ‘right’ to look at the age at which people can receive the state pension as life expectancy increases. The state pension age is currently 66, rising to 67 by 2028 and the government is legally required to periodically review the age. The pound was quoted down at $1.3472 early on Tuesday in London, compared to $1.3506 at the equities close on Monday. The euro stood lower at $1.1688, against $1.1711. Against the yen, the dollar was trading higher at JP¥147.76 compared to JP¥147.29. Centrica led the FTSE 100 at London’s market open, up 4.1%. The Windsor, England-based energy and services company has agreed to acquire a 15% equity stake in Sizewell C, a new 3.2 gigawatt nuclear power station under construction in Suffolk, England. Once operational, Sizewell C will generate electricity equivalent to around 7% of the UK’s current demand. The project will cost a total of around £38 billion. Centrica’s investment comprises committed construction funding of £1.3 billion, and the firm will jointly own the power station alongside the UK government, which holds a 44.9% interest, La Caisse, with 20%, Electricite de France, which owns 12.5%, and Amber Infrastructure, which holds a 7.6% stake with the option to acquire a further 2.4% from the government. International Public Partnerships, down 0.2%, also commits around £250 million to Sizewell C in return for an around 3% shareholding. INPP intends to invest roughly £50 million a year over the next five years. Surface Transforms rose 49%. The Liverpool-based producer of carbon-ceramic automotive brake discs expects revenue for the six months that ended June 30 to be around £8.1 million, rising 72% from £4.7 million the year before. This was the result of ‘a pivotal change in manufacturing yield and output’. ‘Since November 2024, the board has been focused solely on operational improvement and cash management,’ explained Chief Executive Officer Kevin Johnson. ‘During Q2 2025 we started to deliver sustainable improvements in output, yield and quality and we are cautiously confident this level of performance will be maintained in the second half of the year and beyond. We remain mindful that there is room for further operational improvements which in turn will ease the financial stress the business has endured.’ At the other end, Fulcrum Metals sank 19%. The Canada-focused exploration firm has raised a total of £1.0 million before expenses through a placing and direct subscription at 3 pence per share. The fundraise includes a £175,000 strategic investment by mineral developer Metals One for around a 5.9% stake in Fulcrum Metals. Metals One will be a potential future collaborative partner in reviewing projects for assessment. Metals One shed 8.2%. In Asia on Tuesday, the Nikkei 225 index in Tokyo lost 0.1%. In China, the Shanghai Composite rose 0.6%, while the Hang Seng index in Hong Kong gained 0.3%. The S&P/ASX 200 in Sydney closed up 0.1%. In the US on Monday, Wall Street ended mixed, with the Dow Jones Industrial Average slightly lower, the S&P 500 up 0.1% and the Nasdaq Composite rising 0.4%. The yield on the US 10-year Treasury was quoted at 4.39%, widening from 4.36%. The yield on the US 30-year Treasury was quoted at 4.96%, stretching from 4.92%. Insurers have been told by the UK Financial Conduct Authority, FCA, to improve their claims handling, following ‘concerning’ evidence of poor practices in some cases. The regulator said that, while rising motor insurance premiums are largely driven by external cost pressures, shortcomings persist in how some insurers handle claims. FCA analysis indicated that increases in the cost of motor claims due to higher prices for cars, parts, labour, energy and more complex cars and supply chains have contributed to premium increases. The cost of hire vehicles, the number and cost of theft claims and uninsured drivers have also risen significantly. This confirms that increased costs outside of firms’ control, rather than firm profit, were the biggest cause of recent premium rises in motor insurance. But the FCA did identify that referral fees from credit hire firms and claims management companies were associated with slower claims processing and increasing costs. Where it has seen poor practice from firms, the regulator said it is addressing it directly with them, including taking action against specific firms where necessary. Brent oil was quoted at $68.59 a barrel early in London on Tuesday, down from $68.72 late Monday. Gold was quoted lower at $3,385.21 an ounce against $3,397.12. Still to come on Tuesday’s economic calendar, the US Redbook index and the Richmond Fed manufacturing index. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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