25th Sep 2025 12:14
(Alliance News) - European equities were lower on Thursday afternoon, with enthusiasm at a minimum ahead of US data in the afternoon.
The focus for the remainder of the week will be on US economic indicators. The latest gross domestic product reading is released Thursday at 1330 BST, alongside the quarterly personal consumption expenditures inflation gauge. The latest monthly PCE reading is out Friday.
The FTSE 100 index was down 25.28 points, 0.3%, at 9,225.15. The FTSE 250 was down 60.35 points, 0.3%, at 21,630.17, and the AIM All-Share was down 5.83 points, 0.8%, at 776.59.
The Cboe UK 100 was down 0.4% at 923.98, the Cboe UK 250 was down 0.5% at 18,911.85, and the Cboe Small Companies was down 0.1% at 17,558.44.
Pepperstone analyst Michael Brown commented: "Stateside, headlining proceedings will be the final read on Q2 GDP, set to remain unrevised, pointing to growth of 3.3% on an annualised QoQ basis, though this figure is still skewed by the volatile net exports component, and the impacts of tariff front-running in Q1. Also from the US, we receive last month's durable goods orders and existing home sales reports, plus the weekly jobless claims stats, where the continuing claims print pertains to the September NFP survey week."
The pound was quoted slightly up at USD1.3453 at midday on Thursday in London, compared to USD1.3452 at the equities close on Wednesday. The euro stood higher at USD1.1752, against USD1.1740. Against the yen, the dollar was trading at JPY148.76 flat from JPY148.75.
UK Chancellor Rachel Reeves is under growing pressure to raise taxes on gambling firms to cover the cost of lifting the two-child benefit cap, a policy announced in 2015 by the then-Conservative government that restricts child tax credit and universal credit to the first two children in most households.
More than 100 Labour MPs have signed a letter to the chancellor as she prepares for the autumn budget, urging her to scrap the limit long blamed for keeping children in poverty.
This could be paid for with a "targeted levy on harmful online gambling products", which would "support the government's manifesto pledge to reduce gambling-related harm and enable vital action to alleviate child poverty", the MPs wrote. They argued that the UK's effective tax rate on remote gambling "is significantly lower than in many comparable jurisdictions".
Reeves on Monday also said the changes were "on the table".
Speaking to ITV before the MPs' letter was sent, the chancellor said: "I didn't need MPs or former chancellors to tell me to launch an inquiry into gambling taxation.
"I did that as chancellor, and I'll set out the plans on the taxation of gambling – and indeed of other areas – in my budget on November 26."
Nonetheless, shares in Ladbrokes Coral owner Entain rose 0.8%. Davy lifted the gambling firm to ''outperform' on Thursday.
In European equities on Thursday, the CAC 40 in Paris lost 0.5%, while the DAX 40 in Frankfurt shed 0.6%.
In Frankfurt, SAP was down 1.3%. The European Commission launched an antitrust probe into German software firm, over fears the company's practices may have distorted competition.
In London, mining shares continued to rise. Rio Tinto was up 2.8%, while Anglo American and Glencore added 0.9%.
US miner Freeport-McMoRan said that the suspension of its giant Indonesian copper mine will lead to lower output of the metal, leading to a hike in the price of the commodity.
Elsewhere in London, Arecor Therapeutics jumped 20%.
The Cambridgeshire, England-based biopharmaceutical company reported a pretax loss of GBP2.5 million for the six months that ended June 30, narrowed from GBP4.8 million the year before. Revenue rose 0.4% to GBP2.0 million, while sales, general and administrative expenses reduced by 38% to GBP2.1 million from GBP3.4 million.
"During 1H 2025, we advanced partner discussions around both AT278 and our financial position, culminating in the two partnership agreements announced today," said Chief Executive Officer Sarah Howell.
"The co-development agreement with Sequel, our US pump partner, will accelerate AT278's progress towards a pivotal Phase 2 clinical study. The royalty financing agreement with Ligand enables us to immediately co-fund trial-enabling development activities for the AT278 programme, as well as strengthening the balance sheet with a cash runway into 1H 2027. We enter 2H 2025 from a position of strength as we prepare AT278 for phase 2 studies in 2026 and continue to drive research into our oral peptide delivery platform."
Cohort, meanwhile, slipped 5.5% as it backed its full-year growth expectations, but said it anticipates reporting weaker half-year trading, noting a strong comparative period.
The Reading, England-based technology company reported a strong maiden contribution from EM Solutions, but with a reduction in MCL activity, working to offset progress. Cohort expressed optimism about the prospect for significant new orders, "given demand for our products and services from both domestic and export customers."
Stocks in New York were called mixed. The Dow Jones Industrial Average was called up 0.1%, the S&P 500 index down 0.1%, and the Nasdaq Composite 0.2% lower.
The White House has told US federal agencies to prepare for more mass firings during a possible government shutdown next week, according to a memo first published by US news outlet Politico.
The memo by the Office of Management & Budget indicated that President Donald Trump's administration would go beyond the usual practice of temporary furloughs during previous shutdowns. Sent to US media on Wednesday, it instructed federal agencies to target programs they are not legally required to continue.
It comes as the Trump administration clashes with congressional Democrats over federal funding ahead of a fiscal deadline of midnight on September 30.
The yield on the US 10-year Treasury was quoted at 4.15%, widening from 4.14%. The yield on the US 30-year Treasury was quoted at 4.75%, narrowing from 4.76%.
Elsewhere, eyes remained on the UK bond market.
Swissquote analyst Ipek Ozkardeskaya commented: "This week's UK treasury auctions highlighted growing investor unease: demand for the 30-year bond was the weakest since 2022, while the 5-year sale had the thinnest cushion in nearly two years. Tepid appetite underscores how rising budget concerns are weighing on long-term debt and, in turn, UK growth prospects, at a time when inflation pressures keep the Bank of England's hands tied. Sterling looks unappealing ahead of the autumn budget."
Brent oil was quoted lower at USD68.18 a barrel at midday in London on Thursday from USD68.94 late Wednesday.
Gold was quoted up at USD3,756.66 an ounce against USD3,750.05. The yellow metal reached as high as USD3,791.05 earlier in the week in a record-breaking run.
By Emily Parsons, Alliance News reporter
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