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Stocks in Europe were higher on Monday afternoon, despite political uncertainty in France, while gold reached a record high and stocks in the US are set to open in the green amid dovish Federal Reserve expectations. The FTSE 100 index climbed 14.32 points, 0.2%, at 9,222.53. The FTSE 250 was up 141.48 points, 0.7%, at 21,717.02, and the AIM All-Share added 6.79 points, 0.9%, at 772.42. The Cboe UK 100 was up 0.1% at 924.72, the Cboe UK 250 was up 0.9% at 19,029.51, and the Cboe Small Companies was 0.4% higher at 17,120.97. In Paris, the CAC 40 was up 0.5%, before a no-confidence vote which could see France’s Prime Minister Francois Bayrou step down. In Frankfurt, the DAX 40 was up 0.6%. Opposition parties across the board have made it clear they will vote against his minority government, making it highly improbable he will get enough backing to survive he needs a majority of the 577 MPs in the National Assembly. Bayrou himself, who according to officials has invited his ministers for farewell drinks Monday evening, appears to acknowledge that his time has run out. In a bitter remark on Sunday, he criticised political parties that he said ‘hate each other’ but yet were joining forces ‘to bring down the government’. The pound traded at $1.3530 early Monday afternoon, up slightly from $1.3527 late Friday. The euro bought $1.1726, falling from $1.1743. Against the yen, the buck rose to JP¥147.80 from JP¥146.94 at the time of the London equities close on Friday. Japan’s PM Shigeru Ishiba said on Sunday he would step down. In the UK, eyes remain on Westminster after UK PM Keir Starmer last week completed a reshuffle of his senior ministers after Angela Rayner resigned from the government for breaching the ministerial code. Analysts at NatWest commented: ‘This season’s most hotly anticipated date the autumn budget has been set for Wednesday 26th of November. And with a week being a long time in politics, the eleven-week run-in could feel like an eternity for a chancellor trying to assemble a package of measures capable of addressing Britain’s economic and fiscal challenges. The Office for Budget Responsibility’s forecasts will help quantify one of those challenges the gap to the fiscal rules. And analysts currently believe the headroom has worsened to the tune of roughly £20 billion. ‘So expect plenty of speculation over likely tax rises. Alongside the government’s first major front bench reshuffle, there’s plenty for Rachel Reeves to reflect on as she lays the budget groundwork with modest consumer spending growth and relative housing market stability contrasting with stubborn price pressures and questions over the employment outlook.’ The yield on the 10-year US Treasury widened to 4.09% midday Monday, from 4.07% at the time of the London equities close Friday. The yield on the 30-year eased to 4.78% from 4.79%. SPI Asset Management analyst Stephen Innes commented: ‘Markets opened Friday brimming with optimism, clinking glasses to the prospect of Fed rate cuts, but the celebration turned quickly into a hangover by day’s end. What began as a textbook ’bad news is good news’ rallywhere weak jobs data implies easier policysoon soured into a selloff, reminding traders that rate cuts are not a free lunch but often a byproduct of economic pain. This is the uncomfortable paradox: cuts may soothe the fever, but they rarely arrive without confirming the patient is already sick. ‘The Fed now sits in a vice. With its September 17th decision looming, it must weigh whether to deliver the soft landing balm of a 25bp trim or reach for the heavier 50bp cutmedicine that would soothe markets in the short run but all but admit the economy is deteriorating faster than policymakers expected.’ In New York, the Dow Jones Industrial Average is called to open 0.2% higher, the S&P 500 up 0.3% and the Nasdaq Composite up 0.4%. A barrel of Brent rose to $66.80 from $65.14. Gold fetched at $3,609.71 an ounce, up from $3,616.10. Gold topped $3,622 an ounce, another record high. In London, Phoenix Group slumped 7.0%. It said it plans to change its name to Standard Life PLC next year after reporting better than expected operating profit but total cash generation below market hopes. The London-based retirement savings firm swung to a pretax profit of £8 million in the first half of 2025, from a loss of £669 million a year prior. Total income declined 30% to £8.60 billion from £12.33 billion. Adjusted operating profit shot up 25% to £451 million from £360 million, while operating cash generation improved 9% to £705 million from £647 million. Total cash generation declined 17% to £784 million from £950 million. Panmure Liberum analyst Abid Hussain said adjusted operating profit was 3% ahead of expectations, but total cash generation was 3% below consensus. PRS REIT rose 8.0%. It confirmed the offer from Long Harbour is still live as it said Kohlberg Kravis Roberts & Co is participating in its strategic review and formal sale process. The real estate investment trust said KKR has not made an offer for the company, adding that there cannot be any certainty it will, nor of any terms. PRS REIT also confirmed that London-based real estate investment management firm Long Harbour has not withdrawn its possible offer. Back in June, the trust said it has been sent a non-binding proposal regarding a potential offer. Also getting an M&A boost, Treatt jumped 17%. The extracts and ingredients manufacturer has agreed to a £156.6 million takeover from Natara. Natara is a maker of ‘aroma ingredients products’ and serves the flavour and fragrance industry and its majority owner is Exponent, a UK and European private equity firm. Natara will pay 260p cash per Treatt share, a 16% premium to its closing price of 224p on Friday. Elsewhere in the M&A space, IQE fell 8.4%. The supplier of advanced wafer products for the semiconductor industry, says it is widening its strategic review to ‘incorporate the potential sale of the company’. IQE said it is now ‘seeking buyers’. The firm started a strategic review in November. ‘While the strategic review process remains ongoing, IQE is progressing negotiations with multiple parties for the sale of the group’s Taiwan operations. Should the sale of Taiwan be concluded, it is expected that the proceeds from such sale will be used to fully repay the group’s revolving credit facility with HSBC Bank and convertible loan notes issued in March 2025, as well as providing IQE with cash to invest in its core operations,’ IQE added. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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