|
Stock prices in London, Paris and Frankfurt opened mostly lower at the start of the week and month, with defence shares down as US President Donald Trump struck an optimistic tone about a potential Ukraine peace deal, meanwhile Brent oil and gold traded a tad higher. The FTSE 100 index opened down 9.79 points, 0.1%, at 9,711.44. The FTSE 250 was down 155.98 points, 0.7%, at 22,009.19, and the AIM All-Share was up 0.21 points, marginally higher at 754.28. The Cboe UK 100 was down 0.1% at 973.35, the Cboe UK 250 was down 0.7% at 19,144.46, and the Cboe Small Companies was down 0.7% at 17,508.78. In European equities on Monday, the CAC 40 in Paris was down 0.3%, while the DAX 40 in Frankfurt was down 0.4%. Defence stocks were the biggest losers, with Babcock and BAE Systems each slipping 2.0% in London. Rheinmetall retreated 2.6% in Frankfurt, while Safran and Thales fell 1.0% and 2.6% respectively in Paris. The sector weakness followed geopolitical developments after US President Donald Trump said he was ‘optimistic’ following talks between Ukraine and his administration over a potential peace deal. Speaking aboard Air Force One, Trump acknowledged Ukraine’s ‘difficult little problems’ and referred to an ongoing corruption scandal in Zelensky’s circle as ‘not helpful,’ but said he believed ‘there’s a good chance we can make a deal.’ He confirmed that Special Envoy Steve Witkoff is scheduled to meet Russian President Vladimir Putin in Moscow next week, without giving an exact date. Earlier Sunday, Witkoff, Secretary of State Marco Rubio and other US officials met a Ukrainian delegation in Florida. Rubio described the talks as ‘productive’ with ‘additional progress,’ while noting ‘more work to be done.’ Ukrainian delegation head Rustem Umerov said the discussions were ‘productive and successful.’ UK politics also remained in focus. Chancellor Rachel Reeves faced renewed scrutiny over her pre-budget speech last month, after she was pressed on Sky News about whether she misled the public ahead of the autumn statement. Her November 4 speech urged public backing for her fiscal plan and did not repeat Labour’s pledge against broad-based tax rises. But once OBR forecasts were released last week, it became clear Reeves already knew she would meet her fiscal rules at the time, prompting criticism from opposition MPs. Sterling traded at $1.3208 early Monday in London, down from $1.3236 at Friday’s equities close. The euro stood at $1.1593, lower compared to $1.1612, while the dollar fetched JP¥155.47, down against JP¥156.19. Melrose Industries was the biggest faller in the FTSE 100, down 2.5%, after announcing that Chief Financial Officer Matthew Gregory will step down in 2026. He will remain through the year to assist with the transition, with Ross McCluskey - a former Intertek CFO and currently Intertek EVP for EMEA and Government & Trade Services - appointed as CFO and executive director from May 2026. Fresnillo topped the FTSE 100 risers, up 3.1%. Shell edged up 0.2% after announcing that, together with Equinor, it has completed the formation of Adura, a new 50/50 joint venture that becomes the UK’s largest independent North Sea producer. Adura combines both firms’ UK offshore assets into a single Aberdeen-based business. Its portfolio includes 12 producing assets such as Mariner, Rosebank, Buzzard, Shearwater and Penguins, and is expected to deliver more than 140,000 barrels of oil equivalent per day in 2026. Equinor in Frankfurt lost 0.6%. On the FTSE 250, HICL Infrastructure jumped 3.8% after it and Renewables Infrastructure Group said their planned combination would not go ahead, with HICL withdrawing. TRIG said it ‘regrets’ investors will not vote on the transaction, which it believed would have created the UK’s largest listed infrastructure investment company. TRIG, which fell 4.0%, making it the second-biggest faller in the index, said it is now refocusing on its standalone strategy, highlighting its ‘well-established platform,’ ‘high-quality assets’ and a strong renewables and storage pipeline. Among small caps, Versarien surged 54% after appointing administrators and suspending its shares, saying creditor enforcement risks necessitated the move. The firm noted ongoing interest in purchasing remaining assets and intends to appoint Leonard Curtis as administrator. Hardide rose 36% after saying its full-year performance will be ‘materially higher’ than previously expected, supported by a near-£1.8 million order from a new North American customer in the energy sector. In Asia on Monday, the Nikkei 225 index in Tokyo was down 1.9%. In China, the Shanghai Composite was up 0.7%, while the Hang Seng index in Hong Kong was up 0.7%. The S&P/ASX 200 in Sydney closed down 0.6% In the US on Friday, Wall Street finished higher. The Dow Jones Industrial Average rose 0.6%, the S&P 500 gained 0.5%, and the Nasdaq Composite added 0.7%. The yield on the US 10-year Treasury was quoted at 4.04%, widening from 4.03%. The yield on the US 30-year Treasury was quoted at 4.70%, widening from 4.67%. Trump also told reporters he has decided on his nominee for the next Federal Reserve chair, saying: ‘I know who I am going to pick,’ with an announcement imminent. Bloomberg reported Trump expects his choice to pursue rate cuts, naming National Economic Council Director Kevin Hassett as a likely successor to Jerome Powell when his term expires in May. Oil and gold prices are in focus after OPEC backed a pause on production increases and the precious metal benefited from US interest rate cut expectations. Brent oil traded at $63.64 a barrel early Monday in London, up from $63.19 late Friday. Gold rose to $4,245.10 an ounce from $4,208.13. Still to come on Monday’s economic calendar are manufacturing PMIs for the UK, Canada and the US, plus UK figures for mortgage approvals. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
