18th Dec 2025 09:02
(Alliance News) - Stocks in Europe opened higher on Thursday, ahead of interest rate decisions from the eurozone and UK, shaking off a slump in US tech shares overnight.
The FTSE 100 index traded up just 2.86 points at 9,777.18. The FTSE 250 was up 46.84 points, 0.2%, at 22,211.60, and the AIM All-Share was up 0.83 of a point, 0.1%, at 752.31.
The Cboe UK 100 was down fractionally at 979.67, the Cboe UK 250 was up 0.3% at 19,308.28, and the Cboe Small Companies was down slightly at 17,255.29.
The CAC 40 in Paris was up 0.2%, while Frankfurt's DAX 40 was up 0.1%.
The pound rose to USD1.3368 early Thursday, from USD1.3359 at the time of the London equities close on Wednesday. The euro faded to USD1.1730 from USD1.1749. Against the yen, the dollar rose to JPY155.83 from JPY155.55.
Sterling recovered slightly but remains below the USD1.34 mark after a softer-than-expected UK inflation reading.
Consumer prices rose 3.2% year-on-year in November, slowing from 3.6% in October, and well below FXStreet-cited consensus of 3.5%, according to data published by the Office for National Statistics on Wednesday.
The yield on the 10-year US Treasury narrowed to 4.14% from 4.17%. The 30-year yield eased to slightly to 4.82% from 4.83%.
In Tokyo on Thursday, the Nikkei 225 closed down 1.0%. In China, the Shanghai Composite added 0.2%, while the Hang Seng Index in Hong Kong was up 0.1%. Sydney's S&P/ASX 200 ended slightly higher.
In New York on Wednesday, the Dow Jones Industrial Average ended down 0.5%, the S&P 500 dropped 1.2% and the Nasdaq Composite slumped 1.8%.
"Market sentiment is weak after Tuesday's US jobs data failed to spark optimism for more Federal Reserve (Fed) cuts next year, and the AI selloff intensified yesterday on two major developments that aggravated investors' concerns about circularity and leveraged-debt risks," Swissquote analyst Ipek Ozkardeskaya commented.
"First, Amazon is reportedly in talks to invest USD10 billion in OpenAI. In return, OpenAI would buy Amazon's homegrown Trainium chips — a deal reminiscent of its recent contract with Nvidia, which raised questions about circularity, contagion risk, and marked the start of waning AI enthusiasm. Second, Oracle said that negotiations for an equity deal for a Michigan data centre project did not include Blue Owl Capital, and that its development partner had instead chosen "the best equity partner from a competitive group," without specifying who that partner is. The suspense is forcing investors to reassess who is actually backing the project and how secure the funding is."
Oracle fell 5.4% on Wednesday.
Thursday's economic calendar has interest rate decisions in the UK, and the eurozone, before US inflation data.
At midday, the Bank of England is expected to cut bank rate by 25 basis points. In the early afternoon, the European Central Bank is expected to keep rates unmoved. The ECB decision is at 1315 GMT, and a press conference with President Christine Lagarde follows half an hour later.
Analysts at Rabobank commented: "Whereas the ECB is now seen at the bottom of its cutting cycle, the Bank of England is still on the way down. The bank is fully expected to take the next step today. Both we and the market expect the MPC to cut bank rate by 25bp to 3.75%. There are clear cracks in the labour market, private sector wage growth is around 3.5% and slowing, fiscal policy will tighten further next year despite the slightly expansionary autumn budget, and inflation is finally coming down with more deceleration ahead.
"When polling was done, expectations were for a tight 5-4 vote, with Bailey shifting from hold to cut. However, policymakers have had more time than economists to digest the latest CPI and labour market data, so it would not surprise us if we saw a bigger majority than 5-4, and perhaps one or two dissents in favour of a 50bp cut to signal a more 'activist' stance."
According to consensus cited by FXStreet, the US consumer price inflation rate is expected to have picked up slightly to 3.1% in November, from 3.0% in October. The inflation reading is out at 1330 GMT.
On Friday, the Bank of Japan is expected to hike rates by 25 basis points.
A barrel of Brent rose to USD60.03 on Thursday morning, from USD59.91 at the time of the London equities close on Wednesday. Gold rose slightly to USD4,327.81 an ounce from USD4,326.25.
US President Donald Trump promised Americans an economic boom in an address to the nation on Wednesday, while blaming Democratic predecessor Joe Biden for high prices that have hit the Republican's popularity.
"Good evening America. 11 months ago I inherited a mess, and I'm fixing it," the 79-year-old said in his live speech from the White House at the end of his first year back in power.
In a surprise announcement, Trump said that 1.45 million US military service members would each receive "warrior dividend" bonus checks for USD1,776 before Christmas, paid for with revenues raised from tariffs.
Trump then promised that "we are poised for an economic boom the likes of which the world has never seen" in 2026, when the US will co-host the FIFA World Cup, with Canada and Mexico.
BP fell 0.1%. It said late Wednesday Chief Executive Murray Auchincloss will step down on Thursday and be replaced by Woodside Energy Group boss Meg O'Neill.
The London-based oil major said Carol Howle, current executive vice president, supply, trading & shipping of BP, will serve as interim CEO until O'Neil joins on April 1, 2026.
Auchincloss will serve in an advisory role until December 2026 to ensure a smooth transition.
O'Neill has been CEO of Woodside Energy since 2021, where she oversaw the acquisition of BHP Petroleum International.
Before joining Woodside Energy in 2018, she spent 23 years at Exxon Mobil Corp in technical, operational and leadership positions around the world.
Currys shares spiked 9.7%. It reported a swing to half-year profit and the electricals retailer has outlined plans for GBP75 million worth of shareholder returns this financial year.
Pretax profit in the half-year ended November 1 amounted to GBP9 million, swinging from a loss of GBP10 million. On an adjusted basis, it rose to GBP22 million from GBP9 million. Revenue improved 8.0% to GBP4.23 billion from GBP3.92 billion, Currys says.
"We're pleased with the momentum we've built, with healthy growth in sales, profits and cash flow. In the Nordics, being the clear leader in an improving market, combined with strong execution, has driven another notable step forward in profits. It's pleasing that strong top-line growth is translating into improved profitability. In the UK&I, the consumer environment is more muted, and cost headwinds are unhelpful. Still, we're the growing market leader, gaining share, and our margin and cost discipline is going a long way to mitigate headwinds and protect profits," CEO Alex Baldock said.
"We entered peak well prepared, with strong stock availability and market-leading deals that reflect our unmatched importance to our partners. Trading is in line with expectations."
Currys will pay a 0.75 pence per share interim dividend. It did not pay one a year prior.
"Including our ongoing GBP50 million share buyback, we're returning GBP75 million to shareholders this year," it added.
On the decline, Surgical Innovations slumped 40%. The surgical and medical instrument manufacturer said sales so far in the last quarter of the year have been "softer than anticipated".
It puts this down to a "global flu epidemic" which has hit key markets. Industrial action in the UK's National Health Service has "compounded" this.
"Sales in December have also been adversely affected by a one-off quality issue relating to key components supplied by an OEM partner, which constrained our manufacturing of their product. The issues have been promptly addressed and supply is resuming, with normal deliveries expected in early 2026," it added.
The company now expects revenue of around GBP11.5 million for the year, "with a commensurate impact on profits". It had previously expected revenue of GBP11.8 million.
By Eric Cunha, Alliance News news editor
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