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Blue chip stocks in London, Paris and Frankfurt opened higher on Monday after progress in Washington toward ending the US government shutdown; meanwhile refractory producer RHI Magnesita saw its shares in London jump after reporting ‘improved’ trading. Guinness maker Diageo led London equities higher after naming former Tesco boss Dave Lewis as its next chief executive, sparking optimism about a turnaround at the drinks conglomerate. The FTSE 100 index opened up 65.19 points, 0.7%, at 9,747.50. The FTSE 250 was up 181.28 points, 0.8%, at 21,954.67, and the AIM All-Share was up 8.85 points, 1.2%, at 758.50. The Cboe UK 100 was up 0.7% at 972.01, the Cboe UK 250 was up 1.0% at 19,003.63, and the Cboe Small Companies was up 0.8% at 17,861.72. London equities traded higher after the US Senate approved a deal to fund the government, paving the way to end the shutdown that began on October 1. A minority of Democrats joined Republicans to support the compromise agreement following a weekend of negotiations in Washington. ‘The news that the US government shutdown could finally come to an end lifts market sentiment,’ said Ipek Ozkardeskaya, senior analyst at Swissquote. ‘It’s only the opening act in what could still be a drawn-out political drama, but investors are seizing on any sign of progress to end the longest US shutdown in history and on the data they need to gauge where inflation, jobs, and the Fed’s next steps are headed,’ Ozkardeskaya added. The upbeat mood was reflected across Europe. In Paris, the CAC 40 climbed 1.0%, while Frankfurt’s DAX 40 advanced 1.4%. The pound was quoted at $1.3174 early Monday in London, slightly higher than $1.3166 at Friday’s close. The euro traded at $1.1575, compared to $1.1582, while the dollar strengthened to JP¥154.14 from JP¥153.07. Diageo surged 7.3% to the top of the FTSE 100 after appointing former Tesco boss Dave Lewis as chief executive officer, effective January 1, 2026. Lewis, currently chair of Haleon, will succeed interim CEO Nik Jhangiani, who returns to his role as chief financial officer at year-end. Former Tesco boss Dave Lewis has been appointed as chief executive of Diageo as the drinks giant looks to boost its flagging performance. Chair John Manzoni said: ‘The board unanimously felt that Dave has both the extensive CEO experience, and the proven leadership skills in building and marketing world-leading brands, that is right for Diageo at this time.’ His appointment comes at a difficult time for Diageo, whose shares have fallen 40% over the past two years amid sluggish sales. Haleon, meanwhile, named Vindi Banga as its new chair following Lewis’s departure. Shares in the consumer healthcare company lost 0.5%. Elsewhere in the FTSE 100, International Consolidated Airlines Group rebounded 4.3%, recovering from Friday’s 12% results-day slump. The rally was supported by upbeat broker updates, with Bernstein lifting its price target to 475p from 470p and Citigroup raising its price target to 630p from 620p, both maintaining positive ratings on the stock. Other airline stocks also gained ground, helped by optimism that the end of the US government shutdown would ease disruptions to air travel caused by unpaid US air traffic controllers calling in sick or seeking second jobs. Air France-KLM rose 3.3%, while Deutsche Lufthansa added 3.2%. National Grid fell 1.9% to the bottom of the FTSE 100. A Chartered Institute of Personnel & Development survey found more than a quarter of large UK companies expect to cut jobs in the next year due to artificial intelligence, particularly among junior roles. The CIPD warned that the government must ensure Budget and employment reforms do not ‘undermine hiring further.’ The labour survey comes ahead of key UK economic releases this week, including employment data on Tuesday and GDP figures on Thursday, all leading up to the Autumn Budget on November 26. In the FTSE 250, JTC fell 4.7% after private equity group Permira agreed to buy the fund administrator for £2.7 billion in cash, valuing its equity at £2.3 billion, or 1,340 pence per share, a 49% premium to its August closing price. The deal ends rival interest from Warburg Pincus. Meanwhile, RHI Magnesita topped the index, surging 17% after reporting ‘improved’ trading between July and October, with adjusted Ebitda of €136 million, representing a 13% margin versus 8.4% in the first half. The refractory producer said steel demand remains ‘subdued but stable,’ supported by growth in India and the Middle East. Among small caps, Eagle Eye Solutions jumped 9.8% after securing a five-year contract with a major North American food retailer operating 450 stores across Texas and Mexico. The retailer will deploy Eagle Eye’s AIR promotions platform starting in the first half of 2026, though no contract value was disclosed. In Asia, markets advanced. The Nikkei 225 in Tokyo rose 1.4%, the Shanghai Composite gained 0.5%, and Hong Kong’s Hang Seng climbed 1.6%. Sydney’s S&P/ASX 200 closed 0.8% higher. In China, official data showed consumer prices rose 0.2% year-on-year in October, reversing September’s 0.3% decline. The uptick suggests early signs of recovery amid persistent headwinds in the property sector, sluggish consumer demand, and high youth unemployment. In New York on Friday, Wall Street ended mixed. The Dow Jones Industrial Average rose 0.2%, the S&P 500 added 0.1%, while the Nasdaq Composite edged down 0.2%. The yield on the US 10-year Treasury was quoted at 4.14%, widening from 4.07%. The yield on the US 30-year Treasury was quoted at 4.74%, widening from 4.68%. Brent oil traded at $63.91 a barrel early Monday in London, up from $63.51 late Friday. Gold stood at $4,083.00 an ounce, up from $4,012.24. Still to come on Monday’s economic calendar, Ireland releases industrial production data at 1100 GMT. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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