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London stocks lacked direction on Monday, with investors awaiting the end of the US data blackout and looking ahead to next week’s UK budget. The US government shutdown ended last week, paving the way for the release of belated economic data, including the September nonfarm payrolls, now set to be published on Thursday. However, a warning from last week that some data may not be released at all has added to market unease. The FTSE 100 index rose just 3.15 points at 9,701.52. The FTSE 250 was down 23.20 points, 0.1%, at 21,796.36, and the AIM All-Share was up 1.01 points, 0.1%, at 747.52. The Cboe UK 100 was flat at 968.60, the Cboe UK 250 was also largely unchanged at 18,847.52, and the Cboe Small Companies was up 0.1% at 17,620.92. The CAC 40 in Paris was down 0.1%, while the DAX 40 in Frankfurt added 0.1%. Sterling rose to $1.3165 early Monday, from $1.3158 at the time of the London equities close on Friday. The euro traded at $1.1605, down from $1.1617. Against the yen, the dollar bought JP¥154.72, up from JP¥154.58. Analysts at Lloyds Bank commented: ‘With the US government has reopening the Bureau of Labor Statistics has said the September employment report will be published (Thu). That report might seem somewhat dated though so the new weekly ADP employment indicator (Tue) could therefore get a lot of attention. The Fed minutes (Wed) and a raft of Fed speakers (mostly Thu/Fri) provide another focus, and there are likely to be further updates on the resumption of other data releases. ‘Elsewhere it is an important week for inflation data with the final euro area print for October (Wed), the Japanese figures (Thu), which could influence the December BoJ decision, and the UK CPI release (Wed). In the UK the October public finances data (Fri) could skew risks to forecasts for the gilt remit revision expected at the imminent budget, and there will also be the retail sales report.’ Official US data on how consumer inflation and the jobs market fared in October may never be published, the White House said Wednesday, citing the longest government shutdown in the country’s history. Press Secretary Karoline Leavitt accused Democrats of potentially ‘permanently’ harming the federal statistical system. Leavitt told reporters that the October consumer price index and jobs reports will ‘likely never’ be released. According to FXStreet cited consensus, Thursday’s reading for September is expected to show that the US labour market added 50,000 jobs that month. The yield on the US 10-year Treasury was at 4.13%, unmoved from Friday. The yield on the US 30-year Treasury was quoted at 4.74%, stretching slightly from 4.73%. ING analysts commented: ‘In a week when we should finally start to see US data releases coming through, it is important to note that the outcome of the next Fed rate decision in December looks better priced at a 50% chance of a cut.’ In New York on Friday, the Dow Jones Industrial Average lost 0.7%, the S&P 500 closed down 0.1% but the Nasdaq Composite rose 0.1%. XTB analyst Kathleen Brooks commented: ‘We also get Nvidia’s results on Wednesday, which could revitalize the AI/big tech trade. ‘One of the biggest themes for markets remains the tech stock sell off. The volatility that rocked financial markets at the end of last week, was led by a rotation out of high beta stocks, which tend to experience higher swings both to the upside and the downside, and into more stable sectors of the market. This meant that tech, communications and consumer discretionary, which are all high beta plays, were sold off, while the energy and utility sectors outperformed, as these tend to be more defensive plays. Financial stocks also had a stronger relative performance as reduced rate cut expectations can help to boost banks’ net interest income.’ In the UK, the budget on November 26 remains a key theme. UK Chancellor Rachel Reeves will reportedly freeze thresholds for an extra two years after abandoning her plans to hike income tax in the budget. She could also bring in a new levy on high-value properties, in the measures to be announced on November 26. The chancellor had been expected to raise income tax in the face of a gap in spending plans, hinting as recently as Monday that the alternative would be ‘deep cuts’ to public investment. Reeves is understood to have pivoted after improved forecasting from the Office for Budget Responsibility, but other tax rises have not been ruled out, such as limits to salary sacrifice schemes and new tax measures for electric vehicles. There are reports that the chancellor will extend the freeze on income tax thresholds for two years until 2030, in a move that could raise some £8 billion a year for the UK treasury. Reeves could also introduce a new levy on some of the most valuable homes, which would mainly affect properties in London and the South East, according to The Telegraph. A Treasury spokesperson said: ‘We do not comment on speculation around changes to tax outside of fiscal events.’ In London, WPP shares advanced 3.7%. The Sunday Times reported Havas has held M&A talks with the advertising company. One source said Havas has taken an interest in the ad-buying agency WPP Media. Another source said Havas could build a chunky stake in the entire FTSE 100 listing and push for a board seat. In addition, the Sunday Times also reported that Apollo and KKR have taken an interest in pursuing a deal involving WPP. Even with Monday’s share price move, WPP remains the smallest FTSE 100 listing by market value, meaning it could be set for demotion next month. It is worth £3.22 billion. Elsewhere, Genuit shed 11%. The provider of water, climate, and ventilation products said it has seen a ‘moderation in market volumes’ amid UK budget uncertainty. It said revenue in the four months to October 31 rose 7.1% on-year. It expects full year underlying operating profit to be in the range of £92 million to £95 million. It said consensus range between £95 million and £99 million. ‘We are hopeful that the UK government budget in November will confirm policies that are supportive of our industry. We are well-positioned to supply a material increase in construction activity given the right conditions,’ Chief Executive Officer Joe Vorih said. Ixico shot up 16%. The medical research company has won a contract with a global pharmaceutical company to provide imaging services for a phase 3 trial in Huntington’s Disease. The deal is worth £3.5 million over four years. A barrel of Brent fell to $63.83 on Monday, from $64.57 at the time of the London equities close on Friday. Gold declined to $4,076.01 an ounce, from $4,101.80. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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