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Stock prices in London, Paris and Frankfurt continued to mostly trade lower at Monday midday, with PMI data showing the eurozone manufacturing sector suffering its worst month since June in November, with German manufacturing declining more sharply than expected. Meanwhile, UK manufacturing returned to growth in November, as expected. The FTSE 100 index was down 6.95 points, 0.1%, at 9,713.56. The FTSE 250 was down 184.76 points, 0.8%, at 21,979.06, and the AIM All-Share was down 0.0100 points, marginally lower at 754.13. The Cboe UK 100 was up 0.2% at 972.52, the Cboe UK 250 was up 0.9% at 19,106.82, and the Cboe Small Companies was down 0.6% at 17,522.67. Defence-oriented equities led the losses in London, with BAE Systems, Rolls-Royce and Babcock losing 2.7%, 2.6% and 2.2% respectively. The sector-wide selloff reflected broader weakness across European defence names, after US President Donald Trump struck an optimistic tone over prospects for a Ukraine peace deal. Speaking aboard Air Force One, Trump said he was ‘optimistic’ following talks between Ukrainian officials and his administration, acknowledging Ukraine’s ‘difficult little problems’ including a corruption scandal within President Zelensky’s circle which he described as ‘not helpful’. Even so, he said he believed ‘there’s a good chance we can make a deal’. Trump and the Kremlin confirmed that Special Envoy Steve Witkoff is set to meet Russian President Vladimir Putin in Moscow on Tuesday. On Sunday, Witkoff, Secretary of State Marco Rubio and other senior US officials met with a Ukrainian delegation in Florida. Rubio described the talks as ‘productive’ with ‘additional progress’, while Ukrainian delegation head Rustem Umerov said the discussions were ‘productive and successful’. In European equities on Monday, the CAC 40 in Paris was down 0.7%, while the DAX 40 in Frankfurt was down 1.3%. The pound was quoted at $1.3232 at midday in London, lower compared to $1.3236 at Friday’s equities close. The euro stood at $1.1627, up slightly from $1.1612. Against the yen, the dollar traded at JP¥155.11, lower compared to JP¥156.19. A slate of PMI manufacturing releases shaped morning trading. S&P Global confirmed that UK manufacturing returned to growth last month. The PMI rose to a 14-month high of 50.2 points in November, matching the flash reading and improving from 49.7 points in October. Rising above the 50-point mark indicates a return to expansion. S&P said output increased for a second consecutive month for the first time since late 2024, though gains were narrow across sectors. New business stabilised after 13 months of contraction. German manufacturing declined more sharply than expected. The Hamburg Commercial Bank manufacturing PMI dropped to a nine-month low of 48.2 points in November from 49.6 in October, undershooting the flash estimate of 48.4 points. The reading signalled a further deterioration in sector activity. Eurozone manufacturing suffered its worst month since June. The HCOB PMI fell to 49.6 points in November from the neutral 50.0-point level in October, brushing the 49.7 points flash reading. S&P noted stark divergence across the bloc. Germany and France slipped deeper into contraction, while Austria and Italy reported renewed growth. Spain and Greece posted slower expansions, the Netherlands was steady, and Ireland led the pack with the strongest growth in four months. Weaker new orders continued to weigh on the overall survey, with overseas sales remaining a drag. Unilever rose 1.3% after announcing the sale of its Graze snack brand to Germany’s Katjes International. Unilever acquired the ‘healthier snacking’ brand in 2019 for around £150 million. Sky News reported last week the expected sale price is around £35 million. Unilever said the disposal aligns with its strategy to sharpen focus within its Foods portfolio. Completion is expected in the first half of 2026. easyJet and Wizz Air said they have seen no flight woes after Airbus fleet update. Wizz Air said 83 aircraft required immediate software amendments, all completed without flight cancellations. easyJet confirmed its updates were completed over the weekend with no operational disruption. Neither airline changed its financial outlook. Airbus shares slid 8.7% in Paris after Reuters reported a newly discovered production flaw affecting fuselage panels on several dozen A320-family aircraft. Deliveries could be delayed, though there were no indications of any safety impact. easyJet shares were down 1.3%, Wizz Air fell 0.9% in London. Among small caps, Defence Holdings dropped 16%, falling in line with the broader defence selloff driven by developments in Ukraine-Russia peace talks. Stocks in New York were called lower, with the Dow Jones Industrial Average set to fall 0.4%. The S&P 500 was indicated down 0.6%, and the Nasdaq Composite down 0.8%. The yield on the US 10-year Treasury was quoted at 4.05%, widening from 4.03%. The yield on the US 30-year Treasury was quoted at 4.71%, widening from 4.67%. Brent oil was quoted at $63.11 a barrel at midday in London on Monday, down from $63.19 late Friday. Gold was quoted at $4.254.70 an ounce, higher against $4,208.13. Still to come on Monday’s economic calendar are manufacturing PMI releases for Canada and the US. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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