10th Nov 2025 12:23
(Alliance News) - Stock prices in London were solid in the green at midday on Monday, with the FTSE 100 climbing back near record levels as optimism grew that the longest US government shutdown in history may soon come to an end.
The FTSE 100 index was up 97.76 points, 1.0%, at 9,780.33. The FTSE 250 was up 248.47 points, 1.1%, at 22,021.47, and the AIM All-Share was up 9.88 points, 1.3%, at 759.35.
The Cboe UK 100 was up 1.1% at 975.15, the Cboe UK 250 was up 1.3% at 19,072.36, and the Cboe Small Companies was up 1.2% at 17,924.83.
In Europe, the CAC 40 in Paris rose 1.3%, while Frankfurt's DAX 40 added 1.7%.
The US Senate took a major step Sunday toward ending the longest government shutdown in American history when it cleared the way for a formal debate on a motion to resume funding to federal agencies.
The Republican-led chamber approved a procedural vote by 60 votes to 40, putting a hard limit on how much longer senators can discuss the legislative measure.
It gave lawmakers a maximum of 30 more hours to conduct debate before voting on the motion, which will only need 50 votes to pass.
The motion must still clear the Republican-controlled House of Representatives before reaching President Donald Trump's desk - a process that could take several days.
In New York, Wall Street was called higher, with futures indicating the Dow Jones Industrial Average up 0.4%, the S&P 500 up 0.9%, and the Nasdaq Composite up 1.4%.
The yield on the US 10-year Treasury was quoted at 4.13%, widening from 4.07%. The yield on the US 30-year Treasury was quoted at 4.73%, widening from 4.68%.
"The pressure [to reach a breakthrough in shutdown talks] had ratcheted up off the back of aviation disruption that saw over 3,000 flights cancelled on Sunday alone. This was a clear sign that the leaders in Washington cannot simply let this impasse last forever," said Joshua Mahony, chief market analyst at Rostro.
Airline stocks rallied on hopes of a resolution.
British Airways and Iberia owner IAG climbed 3.2% after double-digit losses on Friday. Air France-KLM jumped 4.4%, while Lufthansa gained 3.1%.
The head of IAG subsidiary British Airways has said Heathrow Airport should be expanded without moving the M25 motorway if possible.
Chief Executive Officer Sean Doyle said he "can't argue against the logic" of building a third runway at the west London airport without diverting the major road.
The UK government is considering two proposals to expand Heathrow.
The airport's owners want to build a full-length 3,500-metre runway, which would involve diverting the M25, while Arora Group is seeking permission for a 2,800-metre runway, negating the need to move the motorway.
Speaking at the Airlines 2025 conference in Westminster, Doyle said: "If you can avoid moving the M25, you should avoid moving the M25. I can't argue against the logic of that. I think we should look at ways of potentially building a shorter runway."
The proposal from Heathrow's owners would require a new M25 tunnel and bridges to be built 130 metres to the west of the existing motorway.
By the end of this month, UK Transport Secretary Heidi Alexander will announce the single scheme being taken forward to inform the remainder of her review of the Airports National Policy Statement, ANPS, which will provide the framework for making decisions on airport growth.
US carriers also traded higher in premarket dealings, with Delta up 1.7%, American Airlines up 1.5%, and United Airlines up 1.9%.
The pound was quoted at USD1.3176 at midday in London, compared to USD1.3166 late Friday. The euro traded at USD1.1563, down from USD1.1582, while the dollar strengthened to JPY154.12 from JPY153.07.
Diageo shares led the top flight, up 7.2%, after the Guinness and Smirnoff drinks giant named former Tesco boss Dave Lewis as its new chief executive.
Miners also supported the FTSE 100's advance, with Fresnillo up 5.5% and Endeavour Mining gaining 3.9%, tracking firmer gold prices. Gold rose to USD4,079.40 an ounce from USD4,012.24.
"Gold surged on Monday, reaching its highest level in three weeks as renewed expectations of a Federal Reserve rate cut and persistent geopolitical tensions lifted safe-haven demand," said Van Ha Trinh, financial markets strategist at Exness.
At the bottom of the FTSE 250, JTC fell 5.1% after agreeing to a GBP2.7 billion all-cash takeover by private equity firm Permira Advisers.
The deal values the Jersey-based professional services company at 1,340 pence per share, implying a GBP2.3 billion equity value and a GBP2.7 billion enterprise value. The acquisition ends months of competition between Permira and US rival Warburg Pincus.
Workday partner and IT services provider Kainos gained 1.1% after reporting higher revenue and bookings, despite a fall in profit.
For the six months to September 30, pretax profit fell 17% to GBP28.4 million from GBP34.2 million, weighed by higher investment and staffing costs.
Adjusted pretax profit dropped 16% to GBP32.0 million, while revenue climbed 7.1% to GBP196.1 million, supported by a 27% rise in bookings to GBP227.9 million.
Among smaller stocks, Ferrexpo slipped 1.7% after suspending operations at two subsidiaries following a missile attack on Ukrainian transmission infrastructure.
The iron ore pellet producer said strikes hit targets in Horishni Plavni, home to its mining operations.
Engineering firm Avingtrans advanced 7.5% after its subsidiary Adaptix Ltd received US Food & Drug Administration 510(k) clearance for its 3D orthopaedic X-ray product.
In Ireland, industrial production in Ireland fell in the third quarter when compared to the second quarter, data published by the Central Statistics Office showed.
The country's industrial output fell by 1.2% in the third quarter of 2025.
On a monthly basis, production in manufacturing declined by 10.5% between August and September.
Brent oil was quoted at USD63.71 a barrel at midday in London, up slightly from USD63.51 late Friday.
Looking ahead, investors await UK unemployment and wage data on Tuesday, followed by Thursday's first estimate of third-quarter GDP.
By Eva Castanedo, Alliance News reporter
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