25th Sep 2025 09:06
(Alliance News) - European stocks opened lower on Thursday, as the recent gold price rally stalls and as investors look to this afternoon's economic growth reading in the US.
The FTSE 100 index opened down 14.98 points, 0.2%, at 9,235.45. The FTSE 250 was down 54.37 points, 0.3%, at 21,636.15, and the AIM All-Share was down 4.51 points, 0.6%, at 777.91.
The Cboe UK 100 was down 0.2% at 925.39, the Cboe UK 250 was down 0.4% at 18,933.54, and the Cboe Small Companies was slightly lower at 17,568.49.
In European equities on Thursday, the CAC 40 in Paris shed 0.4%, while the DAX 40 in Frankfurt lost 0.3%.
In the US on Wednesday, Wall Street ended lower, with the Dow Jones Industrial Average falling 0.4%, the S&P 500 slipping 0.3% and the Nasdaq Composite losing 0.3%.
Swissquote analyst Ipek Ozkardeskaya said: "Today, all eyes are on the latest US GDP update, a key pulse check for investors. US growth is expected to have rebounded to 3.3% in Q2 - following a sharp disruption from the trade war in Q1 - supporting the "soft landing" narrative."
The yield on the US 10-year Treasury was unmoved at 4.14%. The yield on the US 30-year Treasury was quoted at 4.74%, narrowing from 4.76%.
Ozkardeskaya continued: "But a soft landing is a double-edged sword: a stronger-than-expected print could reignite concerns that the Fed may refrain from cutting rates further, especially next year when Fed members hold divergent views. That scenario would push bond yields higher, strengthen the US dollar and weigh on equities.
"Conversely, a softer GDP read would likely bolster bets on further Fed easing, sending yields lower, lifting stocks and softening the dollar. Combined with tomorrow's PCE data, today's GDP print could set the tone across bonds, stocks and currencies after weeks of dovish shifts in Fed expectations."
The pound was quoted down at USD1.3448 early on Thursday in London, compared to USD1.3452 at the equities close on Wednesday. The euro stood lower at USD1.1736, against USD1.1740. Against the yen, the dollar was trading at JPY148.73 compared to JPY148.75.
Petershill Partners jumped 33% to the top spot on London's FTSE 250.
The London-based investment group operated by Goldman Sachs Asset Management and focused on private equity and other private capital strategies proposed a delisting of the company, with a capital return of 415 cents per share, totalling USD921 million, and cancellation of shares for all free-float shareholders.
The return of capital will be funded by cash, deferred disposal proceeds and new debt. Including an interim dividend of 5.2 cents, the total payout will be 420.0 cents per share, a 35% premium to the previous close's share price.
Petershill also reported pretax profit of USD287.4 million for the six months to June 30, jumping 75% from USD163.9 million a year earlier. Total income grew 29% to USD188.1 million from USD146.3 million, while movement in financial assets and liabilities held at fair value totals USD185.2 million, more than doubled on-year from USD72.3 million.
At the other end, Mitchells & Butlers was the FTSE 250's leading lagger, falling 8.0%.
The Birmingham, England-based restaurant and pub operator said like-for-like sales in the 51 weeks that ended September 20 were up 4.2% against the year before. Total sales in the year to date grew 3.9%.
"We are pleased with our performance over the year, in which we remained consistently ahead of the market, across all market segments. Sales growth has been broad based, with strong like-for-like performances in both food and drink across our portfolio of brands, supported by cost efficiencies and a capital programme which continues to deliver strong returns," Chief Executive Officer Phil Urban said.
Mitchells & Butlers remains confident of a full-year outturn in line with market expectations, though also anticipates a higher level of overall cost inflation of around GBP130 million.
Proteome Sciences slipped 38%.
The London-based protein-focused drug development services provider posted pretax loss of GBP2.07 million for the six months to June 30, narrowed from GBP2.15 million the year before. Revenue reduced by 14% to GBP1.9 million from GBP2.2 million, while cost of sales was down 25% to GBP1.5 million from GBP2.0 million.
Chair Christopher Pearce commented: "Despite the headwinds and after considerable increases in customer orders, demand for our services business rebounded strongly and we remain optimistic that we are well positioned to deliver future increases in revenue and returns."
In Asia on Thursday, the Nikkei 225 index in Tokyo improved 0.3%. In China, the Shanghai Composite was marginally lower, while the Hang Seng index in Hong Kong fell 0.3%. The S&P/ASX 200 in Sydney closed up 0.1%.
Gold was quoted up at USD3,753.68 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.
"Before anyone frets that this might spell the end of bullion's strong recent run, I'd not be especially worried just yet, particularly with the recent forces behind the upswing, and the steeper Treasury curve – such as, the erosion of Fed independence, and risk of inflation expectations un-anchoring – haven't exactly disappeared. To me, gold remains a buy on any dips," said Pepperstone analyst Michael Brown.
Brent oil was quoted higher at USD69.04 a barrel early in London on Thursday from USD68.94 late Wednesday.
Still to come on Thursday's economic calendar, the US GDP, durable goods orders, and weekly jobless claims data, as well as quarterly personal consumption expenditures figures.
By Emily Parsons, Alliance News reporter
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