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The FTSE 100 closed decrease on Monday in lacklustre buying and selling, amid a downbeat view of the UK’s financial prospects for 2026.
The index closed down 31.45 factors, 0.3%, at 9,865.97. The FTSE 250 ended up 30.01 factors, 0.1%, at 22,342.21, and the AIM All-Share closed up 3.09 factors, 0.4%, at 760.48.
The Confederation of British Business (CBI) stated companies throughout the personal sector as soon as once more count on exercise to fall within the subsequent three months, extending a run of detrimental predictions that started in late 2024.
Scope Markets analyst Joshua Mahony commented: “European markets have entered the ultimate full week of 2025 on a largely tepid tone with many easing again forward of a shortened week that appears prone to see decrease quantity and decrease volatility.”
The CBI’s Alpesh Paleja stated: “Our newest surveys spherical off a disappointing yr for personal sector development. They mark a continuation of the headwinds which have plagued companies over the previous 12 months: tepid demand circumstances, with households cautious round spending; and powerful price pressures squeezing margins.
“Uncertainty forward of November’s finances additionally put the brakes on key spending choices and large tasks, choking up pipelines of labor. The most recent development Indicator means that the alleviation of this uncertainty hasn’t materially boosted exercise.”
The CBI’s report got here as information confirmed the UK financial system suffered a development slowdown within the third quarter of 2025.
In keeping with the Workplace for Nationwide Statistics (ONS), UK gross home product (GDP) nudged 0.1% greater quarter-on-quarter within the three months to September 30. GDP had risen 0.2% within the second quarter, downwardly revised from a previously-reported 0.3% advance.
“In output phrases, development within the newest quarter was pushed by will increase of 0.2% in providers and 0.2% in building; the manufacturing sector fell by 0.3%,” the ONS stated.
AJ Bell analyst Danni Hewson commented: “With the Financial institution of England anticipating development to come back to a standstill in the previous few months of the yr, thanks partially to the affect of the finances on total confidence, it’s clear there are large challenges to beat if the UK’s development story goes to turn into extra compelling.”
In European equities on Monday, the CAC 40 in Paris closed down 0.4%, whereas the DAX 40 ended barely decrease.
The pound was quoted at 1.3452 US {dollars} on the time of the London equities shut on Monday, greater in comparison with 1.3373 on Friday.
The euro stood at 1.1759 {dollars}, greater in opposition to 1.1715 {dollars}. In opposition to the yen, the greenback was buying and selling decrease at 156.95 yen, in comparison with 157.46.
Shares in New York have been greater on the time of the London fairness market shut. The Dow Jones Industrial Common was up 0.5%, whereas the S&P 500 and the Nasdaq Composite have been each 0.6% greater.
UBS thinks US equities have room to rally additional.
“We count on the S&P 500 to succeed in 7,300 by June subsequent yr and seven,700 by the top of 2026, pushed by sturdy estimated earnings development of 10% and looser Federal Reserve coverage. Along with the transformative drive of AI, we consider the structural tendencies of electrification and longevity will even drive fairness efficiency for the long run,” the Swiss financial institution stated.
The yield on the US 10-year Treasury was quoted at 4.17%, widened from 4.14%. The yield on the US 30-year Treasury was quoted at 4.83%, stretched from 4.82%.
Gold posted one other file excessive, with the value of the yellow metallic quoted at 4,440.54 {dollars} an oz., up from 4,348.80 on Friday.
Endeavour Mining and Fresnillo tracked gold greater, rising 1.9% and a couple of.8%, respectively, to turn into the very best performers within the FTSE 100. On the FTSE 250, Hochschild Mining rose 3.7%.
Harbour Power fell 1.3% after asserting the USD3.2 billion acquisition of LLOG Exploration, which it stated will materially enhance money circulation and help “aggressive shareholder distributions”.
Jefferies analyst Mark Wilson referred to as the deal a “sturdy optimistic”.
“In our view it is a recreation changer of a deal for Harbour Power,” he stated, including that the acquisition is an “glorious strategic deal”.
The transfer brings strategic entry into the US and tangible exploration publicity, Mr Wilson defined.
Playing agency Rank Group shed 4.7% after reporting that its Spanish arm has been the sufferer of cost fraud.
The Grosvenor on line casino and Mecca bingo proprietor stated its Enracha and Yo companies in Spain suffered from cost fraud totalling round 7.1 million euro.
Elsewhere, Enwell Power plummeted 29% after reporting its fuel processing services at its Vasyschevskoye fuel and condensate subject in Ukraine have been the topic of an assault by Russian navy drones final week.
Brent oil was quoted at 61.87 {dollars} a barrel on the time of the London equities shut on Monday, up from 60.16 {dollars} late on Friday.
Kathleen Brooks at XTB famous that the oil worth enhance adopted the US boarding a sanctioned oil tanker close to Venezuela.
“The US has imposed an oil blockade on Venezuela, to choke off revenues that fund the Maduro authorities. When the oil blockade was introduced final week, it despatched the value of oil hovering and helped Brent crude to rise above 60 {dollars} after it had slid beneath this key threshold on the again of considerations about extra provide.
“Nevertheless, there’s a concern that Venezuela alone doesn’t at present produce sufficient oil to maneuver the marketplace for the long run and good points might be fleeting,” she added.
The most important risers on the FTSE 100 have been Fresnillo, up 90.00 pence at 3,260.00p, Airtel Africa, up 6.60p at 333.00p, Endeavour Mining, up 76.00p at 3,986.00p, Rio Tinto, up 93.00p at 5,931.00p, and Melrose Industries, up 5.40p at 582.00p.
The most important fallers on the FTSE 100 have been DCC, down 268.00p at 4,708.00p, Diageo, down 61.50p at 1,617.00p, Coca-Cola Europacific Companions, down 160.00p at 6,820.00p, Pershing Sq. Holdings, down 98.00p at 4,800.00p and WPP, down 5.70p at 328.70p.
Tuesday’s financial calendar has minutes from the Reserve Financial institution of Australia assembly, GDP information in Canada and flash quarterly private consumption expenditures figures within the US.
There aren’t any important occasions scheduled in Tuesday’s UK company calendar.
– Contributed by Alliance Information
