5th Nov 2025 11:58
(Alliance News) - Equities in Europe were largely lower on Wednesday afternoon, while stocks in New York look set to fall further after suffering sharp declines on Tuesday.
The FTSE 100 index traded up 6.18 points, 0.1%, at 9,721.14. The FTSE 250 was down just 7.71 points, at 21,987.77, and the AIM All-Share was down 2.56 points, 0.3%, at 756.99.
The Cboe UK 100 was up 0.1% at 969.69, the Cboe UK 250 was down 0.1% at 19,030.39, and the Cboe Small Companies was 0.8% higher at 17,944.45.
In European equities on Wednesday, the CAC 40 in Paris was down 0.2%, while the DAX 40 in Frankfurt was 0.8% lower.
"Another day of volatility appears to lay ahead, with European indices following their Asian counterparts lower in early trade," Scope Markets analyst Joshua Mahony commented.
"Markets have taken a decidedly negative turn of late, with US tech stocks following the weakness seen for much of the market. Recent declines across equities, gold, and crypto marked an abrupt end to a number of momentum trades, with some noting the bearish positions in Nvidia and Palantir by Michael Burry as a sign that the overstretched valuations in the tech space are at extremes that will soon spark market tops. For a market that is so heavily reliant on the health of big tech stocks, a popping of the AI bubble essentially means collapse in financial markets as a whole."
Burry is an investor made famous by a portrayal in the film "The Big Short," which detailed his actions in the lead up to the 2008 financial crisis.
In New York on Wednesday, the Dow Jones Industrial Average is called slightly lower, the S&P 500 down 0.3% and the Nasdaq Composite down 0.4%,
Focus on Wednesday will be on the ADP private payrolls report in the US, some rare light during a data blackout amid the government shutdown.
Numbers last month had showed the US private sector shed 32,000 jobs in September. Figures at 1315 GMT on Wednesday are expected to show employment rose by 25,000 in October, according to consensus cited by FXStreet.
The US government shutdown became the longest ever Wednesday, topping the 35-day record set during Donald Trump's first term.
Federal agencies have been grinding to a halt since Congress failed to approve funding past September 30, and the pain has been mounting as welfare programs – including aid that helps millions of Americans afford groceries – hang in limbo.
There were in recent days the first fragile signs of progress in Congress in the search for an off-ramp, although – for now – 1.4 million federal workers, from air traffic controllers to park wardens, remain on enforced leave or working without pay.
The yield on the 10-year US Treasury narrowed slightly to 4.09% midday Wednesday, from 4.10% at the time of the London equities close on Tuesday. The 30-year yield was unmoved at 4.67%.
Sterling fell to USD1.3029 midday Wednesday, from USD1.3045 at the time of the London equities close on Tuesday. The euro ebbed to USD1.1488 from USD1.1494. Against the yen, the dollar rose to JPY153.64 from JPY153.41.
Swissquote analyst Ipek Ozkardeskaya commented: "Cable is preparing to test the 1.30 psychological support ahead of Thursday's Bank of England meeting."
The Bank of England is expected to leave rates unmoved this week, though analyst opinion is divided and onlookers believe the decision could be on a knife-edge.
Brent traded at USD64.51 a barrel Wednesday afternoon, rising slightly from USD64.48 at the time of the London equities close on Tuesday. Gold fell to USD3,963.84 an ounce from USD3,971.09.
In London, Fresnillo lost 2.7%, the gold miner hurt by a weaker bullion price. Moving in lockstep with precious metals, Fresnillo shares have enjoyed a rip-roaring rise so far this year, but the stock look set to register a fifth successive daily decline.
Coca-Cola Europacific Partners shares rose 2.8%. The soft drinks bottler, which operates in over 30 markets including Australia, Germany, Great Britain and Spain, said revenue climbed 1.0% on-year to EUR5.41 billion in the third quarter of 2025. In Europe, revenue grew 3.8% to EUR4.19 billion.
Coca-Cola EP reaffirmed its 2025 guidance. It anticipates revenue growth of 3% to 4%, and to complete its EUR1 billion share buyback programme during 2025.
Ceres Power jumped 20%. The developer of clean energy technology has signed a manufacturing licence agreement with China's Weichai Power.
The deal is for the production of Ceres Power's solid oxide fuel cell technology.
TP ICAP shares fell 7.1%. It said it is "comfortable" with market expectations as it reported modest sales growth in the third quarter.
The London-based financial services firm said revenue rose 3% to GBP560 million in the third quarter on-year against a record comparative period, or by 1% at constant currency.
This takes revenue for the nine months to September to GBP1.78 billion, up 7% on-year, or 5% at constant currency.
Revenue growth slowed from the 7% seen in the first half of 2025, or 9% at constant currency.
Elsewhere, Headlam slumped 11%. The floor coverings distributor said market dynamics remain "challenging" and its performance so far in the second half of the year has been below forecast.
Headlam said revenue in the four months to October 31 has fallen 5%.
"This performance is below our expectations outlined at the interim results in September 2025, and therefore the board expects full year performance to be below expectations," it added. "In response, the board has already initiated a comprehensive programme of restructuring, cost reduction and operational improvements and is accelerating the implementation of these measures. Further details of the programme will be presented on 11 November."
Headlam said the actions are aimed at retuning the firm to profit and boosting its market footing, even if the wider environment is "subdued".
"The board is confident that these measures, combined with the group's market position and established relationships with suppliers and customers, provides a platform for a return to sustainable profitability and growth," Headlam added.
By Eric Cunha, Alliance News news editor
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