5th Dec 2025 12:11
(Alliance News) - European equities pushed higher on Friday, with eyes on a US inflationary gauge published in the afternoon, as investors expect the Federal Reserve to cut next month.
The FTSE 100 index edged up 7.05 points, 0.1%, at 9,717.92. The FTSE 250 was up 84.99 points, 0.4%, at 22,155.98, and the AIM All-Share was up 4.77 points, 0.6%, at 754.20.
The Cboe UK 100 was down slightly at 973.33 and the Cboe UK 250 was up 0.4% at 19,253.09. The Cboe Small Companies was up 0.5% at 17,717.14.
The CAC 40 in Paris was up 0.3%, while the DAX 40 in Frankfurt was 0.6% higher.
"The FTSE 100 made a steady start on Friday morning as investors await a key release on US inflation,2 AJ Bell analyst Russ Mould commented.
"The market is increasingly betting on an interest rate cut when the Federal Reserve meets on 10 December and mixed employment data this week has done little to dampen those expectations which, in turn, have helped drive recent gains for equities. The core PCE measure of inflation, out later, is one of the most closely followed by the Fed when making its decisions on rates because it excludes more volatile items like food and energy.
"A higher-than-expected reading could give the Fed pause for thought about a pre-Christmas cut, while an in line or lower number would likely give markets further confidence about such a move."
The US data is released at 1500 GMT.
Scope Markets analyst Joshua Mahony commented: "With FOMC members in their pre-meeting blackout period, we are unlikely to see any additional data or commentary that might shift expectations beyond today. Wednesday's ADP payrolls figure saw the biggest monthly decline in private job creation since March 2023, and thus a decline in today's core PCE inflation metric would undoubtedly tilt the dynamic further in favour of a cut."
The pound fell to USD1.3330 early Friday afternoon, from USD1.3353 at the time of the London equities close on Thursday. The euro was down at USD1.1644 from USD1.1658. Against the yen, the dollar was higher at JPY155.21 from JPY154.75.
The eurozone's economy climbed faster than anticipated in the third quarter, although annual growth slowed, data published by Eurostat showed Friday.
The region's economy climbed by 0.3% in the third quarter, beating November's flash reading of 0.2%, and accelerating from 0.1% in the second quarter.
German factory orders were stronger than expected in October, data from Destatis showed Friday.
New orders in manufacturing rose 1.5% in October from September on a seasonally and calendar adjusted, beating the FXStreet-cited market consensus for a 0.5% month-on-month improvement.
In September, orders had risen 2.0% from August.
"When large-scale orders are excluded, new orders were 0.5% higher than in the previous month," Destatis commented. "The less volatile three-month on three-month comparison showed that new orders in the period from August 2025 to October 2025 were 0.5% lower than in the previous three months; when large-scale orders are excluded, new orders were down 0.1%."
On-year, factory orders slipped 0.7% in October, improving from a 3.4% slide in September.
The yield on the 10-year US Treasury was at 4.11%, stretching slightly from 4.10% at the time of the London equities close on Thursday. The 30-year yield widened to 4.77% from 4.76%.
In New York, the Dow Jones Industrial Average is called up 0.1%, the S&P 500 0.2% higher and the Nasdaq Composite up 0.4%.
Netflix shares were 1.5% lower in pre-market trade. It announced a deal with Warner Bros Discovery to acquire Warner Bros, including its film and television studios, HBO Max and HBO.
The cash and stock deal is worth USD82.7 billion on an enterprise basis.
"The transaction is expected to close after the previously announced separation of WBD's Global Networks division, Discovery Global, into a new publicly-traded company, which is now expected to be completed in Q3 2026," Netflix added.
"This acquisition brings together two pioneering entertainment businesses, combining Netflix's innovation, global reach and best-in-class streaming service with Warner Bros' century-long legacy of world-class storytelling. Beloved franchises, shows and movies such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe will join Netflix's extensive portfolio including Wednesday, Money Heist, Bridgerton, Adolescence and Extraction, creating an extraordinary entertainment offering for audiences worldwide."
Gold rose to USD4,221.26 an ounce midday Friday, from USD4,214.64 at the time of the London equities close on Thursday. A barrel of Brent faded to USD63.17 from USD63.45 at the time of the London equities close on Thursday.
In London, a lofty copper price supported mining shares. Antofagasta was up 0.9%, while Anglo American added 1.9%, while BHP climbed 1.8%.
Elsewhere in London, Trustpilot jumped 14%, recovering some of its 32% slump on Thursday after Grizzly Research took aim at the Copenhagen-based consumer review platform.
Greggs rose 5.4%. JPMorgan started coverage of the bakery chain at 'overweight'.
Big Yellow fell 3.9%. Blackstone confirmed it does not plan to make an offer for the self-storage firm. Big Yellow on Thursday had said talks with a Blackstone unit over a possible bid had ended. The Bagshot, Surrey-based self-storage site operator said Blackstone Europe, part of New York-based private equity investment manager, had updated the company on the status and valuation level of a possible offer.
Big Yellow said after consideration it concluded that there is no basis for continuing discussions with Blackstone, adding the put-up or shut-up deadline of December 8 will not be extended.
By Eric Cunha, Alliance News news editor
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