17th Nov 2025 12:05
(Alliance News) - European markets went into Monday afternoon in negative territory, with simmering tensions between China and Japan and nerves ahead of US jobs data later this week keeping a lid on optimism.
The FTSE 100 index fell 7.52 points, 0.1%, at 9,690.85. The FTSE 250 was down 68.61 points, 0.3%, at 21,750.95, and the AIM All-Share was up 0.37 of a point, 0.1%, at 746.88.
The Cboe UK 100 was down 0.1% at 967.33, the Cboe UK 250 was 0.1% lower at 18,820.98, and the Cboe Small Companies was up 0.2% at 17,624.93.
The CAC 40 in Paris and the DAX 40 in Frankfurt were down 0.4%.
"A somewhat downbeat start to the week in Europe, with markets losing traction once again," Scope Markets analyst Joshua Mahony commented.
China has advised its citizens not to travel to Japan until further notice amid an escalating diplomatic dispute over the status of Taiwan.
A statement released by the Chinese Foreign Ministry and the Chinese embassy in Tokyo on Friday said Japanese politicians have "severely strained" the atmosphere for mutual exchange with "blatantly provocative statements about Taiwan" and "significantly endangered" the safety of Chinese citizens in Japan.
Japan's economy contracted less than expected in the third quarter of 2025, preliminary estimates released by the Cabinet Office showed Monday.
Japan's seasonally adjusted gross domestic product contracted 0.4% quarter-on-quarter in the three months through to September, following an upwardly revised 0.6% increase in the previous quarter.
Mahony added: "Crucially, the recent instructions from Chinese authorities that tourists and students should avoid Japan does highlight the potential demand destruction that could lead to further weakness in the fourth quarter."
Stocks with a Chinese exposure struggled. Luxury retailer Burberry fell 3.7%, while miner Anglo American gave back 1.6%.
The yield on the US 10-year Treasury was at 4.12%, narrowing from 4.13% at the time of the London equities close on Friday. The yield on the US 30-year Treasury was quoted at 4.71%, narrowing from 4.73%.
In New York, the Dow Jones Industrial Average is called up slightly, the S&P 500 0.3% higher and the Nasdaq Composite up 0.5%.
Analysts at Barclays commented: "The 43-day government shutdown finally ends, and federal agencies such as the BLS and BEA may be scrambling to release long-delayed data. We expect the labour market to have continued to cool.
Sterling rose to USD1.3173 early Monday afternoon, from USD1.3158 at the time of the London equities close on Friday. The euro traded at USD1.1600, down from USD1.1617. Against the yen, the dollar bought JPY154.79, up from JPY154.58.
XTB analyst Kathleen Brooks commented: "The budget takes place next week, the Treasury would be wise to halt all media updates and leaks about potential tax and spend changes before then, especially since the UK bond market remains fragile. UK long end yields sold off sharply on Friday, the 30-year gilt and the 10-year gilt were the worst global performers at the end of last week."
In London, THG rose 2.2%. It announced a partnership agreement with Mars to bolster presence of THG's Myprotein in both offline retail and licensing.
Manchester, England-based online retailer said the pact between its sports nutrition brand Myprotein and Mars, a McLean, Virginia-based confectionery company, will see the launch of a new range of Snickers-flavoured protein powders online and in store.
From Thursday, Snickers and Snickers white impact whey protein will be available on myprotein.com and through major UK retailers. Further Mars brand varieties will follow.
The partnership also will see Mars branded protein bars range available through Myprotein websites.
HSS Hire fell 0.9%, while Speedy Hire added 2.9%. The duo confirmed they have completed the agreement announced back in October for Speedy Hire to provide services to a revamped and renamed HSS Hire, in which it will hold an equity stake.
HSS Hire said it will change its name to ProService Building Services Marketplace from Tuesday, with Speedy Hire becoming the equipment supplier to HSS ProService and HSS's Hire Service business sold off to investment funds managed by Endless LLP.
HSS said revenue for the continuing operations of ProService is expected to be broadly in line with market expectations of GBP274.8 million for the financial year ending on March 31, 2026. However, the agreement with Speedy Hire took longer than expected to complete, and this will result in additional costs.
HSS said the Speedy Hire deal will enhance its net margins and be earnings accretive from financial 2027.
Speedy Hire on Monday called the completion of the agreement with HSS a "significant milestone". The deal is worth GBP50 million to GBP55 million in annualised revenue to Speedy and will be "significantly earnings accretive" in the first full year following a period of integration, it said.
A barrel of Brent fell to USD64.35 on Monday, from USD64.57 at the time of the London equities close on Friday. Gold declined to USD4,083.04 an ounce, from USD4,101.80.
By Eric Cunha, Alliance News news editor
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