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European markets were higher by midday on Tuesday in subdued, with strength in mining stocks offering some impetus to the FTSE 100. Tuesday is the last full-day of trading in the London equity market this year. There is an abbreviated trading day on Wednesday. Markets then re-open on Friday, after the New Year’s Day holiday on Thursday. Paris is also open for a half trading day on Wednesday; Frankfurt is not. Frankfurt closes at 1300 GMT on Tuesday. The FTSE 100 index was up 43.99 points, 0.5%, at 9,910.52. The FTSE 250 was up 39.26 points, 0.2%, at 22,446.77, and the AIM All-Share added 2.97 points, 0.4%, at 762.55. The Cboe UK 100 was up 0.5% at 993.41, the Cboe UK 250 was up 0.3% at 19,546.33, and the Cboe Small Companies was 0.1% higher at 17,582.41. Over in Paris, the CAC 40 was 0.3% higher. The DAX 40 in Frankfurt was also up 0.3%, roughly an hour before the closing bell there. Sterling rose to $1.3508 early Tuesday afternoon in London, from $1.3491 at the time of the London equities close on Monday. The euro rose to $1.1770 from $1.1757. Against the yen, the dollar edged down to JP¥155.93 from JP¥156.04. The yield on the 10-year US Treasury was unchanged at 4.12%, while the 30-year yield was unmoved at 4.80%. Tuesday sees the release of Federal Reserve meeting minutes at 1900 GMT. A quarter-point cut in December, the third in successive meetings, took the Federal Reserve’s target range for the federal funds rate to 3.50%-3.75%. Nine of the 12-strong Federal Open Market Committee’s voters backed the rate reduction. Kansas City Fed President Jeff Schmid and Austan Goolsbee of the Chicago Fed pressed the case for the status quo, while Trump ally Stephen Miran once more supported a jumbo half-point cut. Fed Chair Jerome Powell told reporters after the decision that the Fed funds rate is now ‘within a range of plausible estimates of neutral, and leave us well-positioned to determine the extent and timing of additional adjustments’. ‘Markets are looking to the minutes for clearer signals on the Federal Reserve’s policy trajectory in 2026, at a time when year-end liquidity is thin, and price action may be amplified,’ Tickmill analyst Joseph Dahrieh commented. ‘For now, markets are broadly pricing in two rate cuts in 2026.’ A barrel of Brent rose to $61.72 midday Tuesday from $61.48 at the time of the London equities close on Tuesday. Gold traded at $4,383.05 an ounce, up from $4,336.60. DHF Capital analyst Bas Kooijman commented: ‘Gold edged higher on Tuesday, stabilising above the $4,300 level after the sharp profit-taking move seen in the previous session. Monday’s selloff came as investors locked in gains with prices trading at historical highs. Despite that correction, the broader outlook for bullion remains firmly constructive. ‘Geopolitical risks continue to provide a strong safety-haven underpinning. In Eastern Europe, tensions persist while a ceasefire remains elusive. In the Middle East, the situation remains fragile, with risks of escalation still present. Elsewhere, tensions between the US and Venezuela have intensified, while frictions between China and Japan remain unresolved.’ Ukraine said Tuesday there was no ‘plausible evidence’ it launched a drone attack on one of Vladimir Putin’s homes, accusing Russia of making false claims to manipulate the peace process. ‘Almost a day passed and Russia still hasn’t provided any plausible evidence to its accusations of Ukraine’s alleged ’attack on Putin’s residence.’ And they won’t. Because there’s none. No such attack happened,’ Ukrainian Foreign Minister Andriy Sybiga said in a post on X. The Kremlin said attempts by Ukraine and Western media to deny the incident were ‘insane’, and that Russia should not have to provide evidence for the alleged attack as all the drones were shot down. Moscow’s allegation comes at a pivotal moment in the nearly four-year war. Ukraine says it has agreed to 90% of a US-drafted peace plan including the issue of post-war security guarantees but Russia has been hesitant to accept a deal that does not meet its maximalist demands. The Kremlin said Tuesday it would ‘toughen’ its negotiating position in response to the alleged attack. Fresnillo shares were 5.3% higher. The stock hit a record high on Monday, supported by a lofty gold and silver price, before surrendering that progress before the end of trading that day. Fresnillo shares have risen more than five-fold so far this year, one of the brightest sparks on the FTSE 100. Other miners were also on the up, with Anglo American adding 2.5%, Antofagasta rising 2.3% and Glencore up 2.1%. Elsewhere in London, Gulf Marine Services rose 5.4%. It has secured a two-year contract extension for a mid-size vessel currently operating in the Gulf Cooperation Council region. The GCC comprises Saudi Arabia, Kuwait, UAE, Qatar, Bahrain and Oman. The extension comprises a one-year firm agreement, with the option of another year. ‘With this extension secured, the company’s backlog has increased to $607 million,’ the operator of self-propelled self-elevating support vessels for the offshore energy industry said. In New York, the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite are called down 0.1%. Meta Platforms shares were down 0.2% in pre-market dealings. The Facebook-owner has agreed to acquire Manus, an artificial intelligence agent created by a company founded in China but now based in Singapore, the two firms said on Tuesday, confirming a report by Bloomberg. However, analysts warned the deal could fall foul of regulators at a time of fierce technological rivalry between Washington and Beijing. Manus, created by startup Butterfly Effect, can for example sift through and summarise resumes or create a stock analysis website, according to its website. Meta said Monday that the deal the financial details of which were not disclosed will ‘bring a leading agent to billions of people and unlock opportunities for businesses across our products’. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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