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LONDON MARKET CLOSE: European stocks wilt but S&P 500 hits fresh high

30th Jun 2025 16:57

(Alliance News) - European stocks struggled on Monday despite fresh gains on Wall Street which saw the S&P 500 notch another all-time best level.

The FTSE 100 index closed down 37.95 points, 0.4%, at 8,760.96. The FTSE 250 was 89.70 points lower, 0.4%, at 21,626.26, while the AIM All-Share added 1.32 points, 0.2%, at 770.65.

The Cboe UK 100 fell 0.2% to 874.54, the Cboe UK 250 dipped 0.3% at 19,152.78, but the Cboe Small Companies climbed 0.3% at 17,559.95.

In European equities on Monday, the CAC 40 in Paris fell 0.2%, while the DAX 40 in Frankfurt declined 0.5%.

The yield on the US 10-year Treasury was quoted at 4.27%, unchanged from Friday. The yield on the US 30-year Treasury was quoted at 4.82%, flat from Friday.

In New York, the Dow Jones Industrial Average was up 0.4%, the S&P 500 was 0.2% higher and the Nasdaq Composite climbed 0.1%.

"This week brings a slew of key US data, as well as the Friday deadline for passage of the fiscal bill. The July 9 end of the tariff pause is approaching and should bring lots of trade headlines this week, both good and bad. If nothing else, we should expect heightened volatility across most global markets," analysts at Brown Brothers Harriman said.

US senators began voting on President Donald Trump's flagship spending bill.

Trump wants what he calls the "One Big Beautiful Bill" to extend his expiring first-term tax cuts at a cost of USD4.5 trillion to the budget, boost military spending and fund his plans for unprecedented mass deportations and border security.

In addition, a slew of data on the US jobs market culminates in nonfarm payrolls figures on Thursday, a day earlier than usual due to Friday's public holiday in the US.

Citi expects growth in nonfarm payrolls to slow to 85,000 in June from 139,000 in May and sees the unemployment rate increasing to 4.4% from 4.2%.

Veronica Clark at Citi explained there have been building signs over the last two months that an already-fragile labour market, defined by low hiring but also low firing, has been weakening further.

Clark expects this to become even more evident in the June jobs report with payroll job growth slowing and the unemployment rate rising.

She sees this as one, of two, crucial data releases before the July Federal Open Market Committee meeting, the next being June CPI released on July 15.

"We expect June jobs data will be an additional step in solidifying a clearer dovish pivot from Fed officials at the July meeting, with rate cuts resuming in September in our base case," Clark said.

The pound was quoted lower at USD1.3701 at the time of the London equities close on Monday, compared to USD1.3713 on Friday. The euro stood at USD1.1747, higher against USD1.1717. Against the yen, the dollar was trading lower at JPY144.31 compared to JPY144.75.

Eurozone CPI figures are due for release on Tuesday.

Ahead of that, provisional figures showed German inflation slowed slightly in June, with softer energy and food costs helping to offset continued service-sector price pressure.

The consumer price index rose 2.0% year-on-year in June, easing from 2.1% in May, according to Destatis.

Prices were flat on the month, below the 0.2% rise expected by the FXStreet-cited consensus.

Annual core inflation, which excludes food and energy, stood at 2.7%, also cooling slightly from May's 2.8% reading.

Back in the UK, gross domestic product grew as expected during the first quarter of 2025, according to data from the Office for National Statistics.

Real GDP is estimated to have increased by 0.7% between January and March, in line with the ONS's first estimate. This is accelerated from a 0.1% growth in the prior quarter.

On-year, real GDP is estimated to have increased by an unrevised 1.3%, also in line with the first estimate.

Meanwhile, UK mortgage approvals were higher than expected in May, numbers from the Bank of England showed.

Net mortgage approvals for house purchases rose by 3.9% to 63,032 in May from 60,656 in April, data from the central bank showed. In April, the figure had fallen 5.3% from 64,057 in March.

The latest reading topped the FXStreet-cited consensus, which had anticipated a fall to 59,750.

Anthony Codling at RBC Capital Markets said the figures are good news for the housing market and gives confidence that the reduction in housing market activity following the end of the stamp duty holiday was a blip not a trend.

Housing market activity is broadly in line with the five-year average, comforting news for homebuyers and sellers, he added.

"With a shortage of existing homes on the market, we believe housebuilders are in a strong position to benefit from the increase in mortgage approvals and are likely to sell more homes," Codling stated.

Despite this, housebuilders were prominent fallers in London with Persimmon down 3.8%, Barratt Redrow down 3.5% and Taylor Wimpey down 3.0%.

Faring better on the FTSE 100, Babcock International climbed 1.1% as Bank of America, Citi and Jefferies raised share price targets for the London-based aerospace, defence and nuclear engineering services company.

Last Wednesday, Babcock raised medium-term guidance, increased its dividend, and set plans for a first-ever share buyback as it said it stands to benefit from increased spending on defence.

Bank of America said the results highlighted that the bull case is "on track with a buyback announcement and a guidance upgrade on margins".

But Centrica fell 1.6% as JPMorgan downgraded to 'neutral' from 'overweight'.

On the FTSE 250, WH Smith declined 3.0% as it completed the sale of its high street business to Modella Capital but for a lower price than initially agreed.

WH Smith now expects to receive gross cash proceeds of up to GBP40 million compared to GBP52 million previously expected.

WH Smith said the future of the high street business under a change of ownership has led to a more "cautious outlook".

This, combined with a period of softer trading, has resulted in a reduction in the ongoing cash flow of the business.

Brent oil was quoted lower at USD66.42 a barrel late on Monday afternoon in London from USD66.83 late Friday. Gold fetched USD3,286.04 an ounce, higher against USD3,273.76.

The biggest risers on the FTSE 100 were Endeavour Mining, up 52.00 pence at 2,228.00p, Imperial Brands, up 53.00p at 2,877.00p, Airtel Africa, up 3.20p at 180.30p, Rolls Royce, up 13.40p at 967.60p and BAE Systems, up 24.50p at 1,886.50p.

The biggest fallers on the FTSE 100 were Intermediate Capital Group, down 84.00p at 1,928.00p, Barratt Redrow, down 18.00p at 455.90p, Persimmon, down 51.00p at 1,296.00p, Croda International, down 94.00p at 2,924.00p, and Taylor Wimpey, down 3.65p at 118.75p.

Tuesday's economic calendar has a slew of manufacturing PMIs including releases in the UK, eurozone and US plus eurozone inflation figures.

On the UK corporate front, grocer Sainsbury's releases a trading statement.

By Jeremy Cutler, Alliance News reporter

Comments and questions to [email protected]

Copyright 2025 Alliance News Ltd. All Rights Reserved.


Related Shares:

PersimmonBarratt RedrowTaylor WimpeyCentricaWh SmithBabcockEndeavour MiningImperial BrandsRolls-RoyceBAE SystemsAirtel AfricaInt.cap.grpCroda International
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