9th Jun 2025 12:04
(Alliance News) - European stocks made a slow start to the new week, as traders anxiously await trade talks between the US and China.
The FTSE 100 index was down 13.01 points, 0.2%, at 8,824.90. The FTSE 250 was down 39.49 points, 0.2%, at 21,117.79, and the AIM All-Share was up 4.87 points, 0.6%, at 761.75.
The Cboe UK 100 was down 0.1% at 878.17, the Cboe UK 250 was flat at 18,615.96, and the Cboe Small Companies was up 0.3% at 16,956.62.
In European equities on Monday, the CAC 40 in Paris was down 0.2%, while the DAX 40 in Frankfurt was 0.5% lower.
"An uncertain start to the week for European markets, as traders struggle to find the same optimism that dominated the Asian session. Looking at the source of this weakness, the one standout area of downward pressure has come from the defence sector, with the likes of Rolls-Royce, BAE Systems, Rheinmetall, and Thales all losing ground as the recent run higher starts to lose momentum," Scope Markets analyst Joshua Mahony commented.
In London, Rolls-Royce shed 0.9%, while BAE Systems fell 0.4%. Rheinmetall fell 1.8% in Frankfurt, while Thales gave back 1.4% in Paris.
Mahony added: "Nonetheless, with Putin apparently approving a massive re-ramp of the Russian navy, the military spending boom only looks set to grow over the coming years."
Nato head Mark Rutte will on Monday call for a "quantum leap" in defence capacities including a "400% increase" in air and missile defence which "protects" the alliance against Russia.
"We see in Ukraine how Russia delivers terror from above, so we will strengthen the shield that protects our skies," the Nato secretary general Rutte was to say in a speech to the Chatham House think-tank in London, according to comments released in a statement.
To maintain credible deterrence and defence, Nato needs "a 400% increase in air and missile defence".
Sterling rose to USD1.3559 early Monday afternoon, from USD1.3522 at the time of the London equities close on Friday. The euro climbed to USD1.1420 from USD1.1387. Against the yen, the dollar faded to JPY144.16 from JPY144.93.
After a round of talks in Geneva last month, the US and China will sit down at the negotiating table in London on Monday to attempt to preserve a fragile truce on trade, despite simmering tensions.
US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will lead the US delegation, President Donald Trump announced Friday.
Chinese Vice Premier He Lifeng – who led Beijing's negotiating team in Geneva – will also lead the team in London, the foreign ministry announced at the weekend.
"The meeting should go very well," Trump said in a post on his Truth Social platform.
AJ Bell analyst Russ Mould commented: "US inflation readings for both consumers and producers are expected later this week along with consumer sentiment and inflation expectations data. These data points, along with any progress on US-China trade talks, could help shape sentiment in the coming days in the absence of many major corporate announcements."
The yield on the US 10-year Treasury was quoted at 4.49% early Monday afternoon UK time, stretching from 4.48% at the time of the London equities close on Friday. The yield on the US 30-year Treasury was quoted at 4.96%, widening from 4.94%.
In New York, the Dow Jones Industrial Average and S&P 500 are called to open 0.1% higher. The Nasdaq Composite is called to open fractionally lower.
In London, M&G shares rose 1.8%, the best FTSE 100 performer in afternoon trade. UBS raised the stock to 'buy' from 'neutral'.
WPP fell 1.6%. The advertising agency announced its CEO Mark Read will leave the post at the end of this year.
Trustpilot shed 12%. Panmure Liberum initiated coverage of the stock at 'sell'.
Revolution Beauty climbed 19%. Revolution Beauty confirmed Sports Direct owner Frasers Group is one of a number of parties eyeing a bid for the company.
The London-based cosmetics retailer said Frasers Group is "one of a number of parties conducting due diligence" as part of the formal sale process announced in May.
Revolution Beauty said there can be no certainty that Frasers' interest will result in a firm offer for the company.
On Saturday, Sky News reported Frasers has approached Revolution Beauty about a potential offer for the company.
Frasers shares were 0.5% lower. boohoo, an investor in Revolution Beauty, rose 0.7%.
AJ Bell's Mould commented: "Frasers is no stranger to clashing with boohoo, having previously tried and failed to get founder Mike Ashley and restructuring expert Mike Lennon seats on the board of directors. The stage is set for another battle between the two companies in the quest to own Revolution Beauty.
"Under normal circumstances, one might expect a deep-pocketed business like Frasers to seal the deal with ease. However, boohoo owns 29% of Revolution Beauty and is unlikely to let its arch-rival swoop on this business without a fight."
Mould continued: "Revolution Beauty has so far proved to be a disastrous investment for boohoo, having built up a stake at a much higher price than it is trading today. boohoo can either hope to narrow some of its losses by someone like Frasers taking over the target at a chunky premium to the current market price, or it can buy the business outright and enact the mother of all turnaround stories to try and claw back its losses."
A barrel of Brent rose to USD66.63 early Monday afternoon, from USD66.21 at the time of the London equities close on Friday. Gold bought USD3,312.93 an ounce, down from USD3,330.06.
By Eric Cunha, Alliance News news editor
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