18th Nov 2025 08:45
(Alliance News) - Stock prices in Europe opened in the red on Tuesday, following sharp falls in Asia and as equities in New York struggled overnight, with the S&P 500 ending below a key level for the first time a number of months.
deVere Group analyst Nigel Green commented: "AI has been the engine of global markets for two years, but the phase of unchecked optimism is giving way to a sharper focus on resilience. Investors want proof that spending translates into dependable earnings growth. The companies that deliver that clarity will lead the next stage."
The FTSE 100 index gave back 97.29 points, 1.0%, to sit at 9,578.14. The FTSE 250 was down 238.29 points, 1.1%, at 21,449.61, and the AIM All-Share was 7.72 points lower, 1.0%, at 736.73.
The Cboe UK 100 was down 1.1% at 955.82, the Cboe UK 250 was also down 1.1% at 18,529.68, and the Cboe Small Companies was 0.6% lower at 17,579.17.
The CAC 40 in Paris was down 1.6%, while the DAX 40 in Frankfurt fell 1.2%.
In New York on Monday, the Dow Jones Industrial Average shed 1.2%, the S&P 500 gave back 0.9% and the Nasdaq Composite declined 0.8%.
"Equivocation of Fed speakers is one factor that appears to be weighing on risk assets (S&P500 yesterday closing below the 50-day moving average for the first time since April)," analysts at Lloyds Bank commented.
"Whilst Governor Christopher Waller's overnight speech titled 'the case for continuing rate cuts' made his position clear, market expectations for the December FOMC rate decision imply it is essentially a coin toss."
Waller said that a December cut will "provide additional insurance" against an acceleration in labour market weakening, adding that he backs another 25 basis points reduction.
"My focus is on the labour market, and after months of weakening, it is unlikely that the September jobs report later this week or any other data that's going to come out in the next few weeks is going to change my view that another cut is in order," said Fed Governor Christopher Waller in remarks at a London dinner.
In Tokyo, the Nikkei 225 slumped 3.2%. In China, the Shanghai Composite ended down 0.8%, while the Hang Seng Index in Hong Kong was 1.7% lower. Sydney's S&P/ASX 200 slumped 1.9%.
A belated US jobs report and looming earnings from chip making juggernaut Nvidia are adding to unease, SPI Asset Management analyst Stephen Innes commented.
"The two trapdoors hanging over global risk are obvious: The delayed US jobs report and Nvidia earnings are each capable of swinging sentiment several percentage points in either direction. If both break friendly, risk will find a floor. If one misfires, equities will feel like they're balancing on a rope bridge with fraying ropes—and Asia is the first session to price that," Innes explained.
The pound rose slightly to USD1.3176 early Tuesday, from USD1.3169 at the time of the London equities close on Monday. The euro was up at USD1.1606 against USD1.1598. Against the yen, the dollar slipped to JPY154.94 from JPY155.12.
The yield on the 10-year US Treasury narrowed to 4.11% from 4.13% at the time of the London equities close on Monday. The 30-year yield eased to 4.72% from 4.73%.
A barrel of Brent fell to USD63.74 early Tuesday, from USD64.46 late Monday afternoon.
In London, only a handful of blue-chip stocks were in the green, and among those were FTSE 100 constituents in sectors seen as defensive in the face of market strife. Drugmaker AstraZeneca added 1.2%, while consumer goods firm Unilever rose 0.4%.
Imperial Brands shares climbed 3.1%. The tobacco company said pretax profit in the year to September 30 rose 3.3% to GBP3.13 billion from GBP3.03 billion the year prior. Revenue, however, slipped 0.7% to GBP32.17 billion from GBP32.41 billion.
"Our consistently strong operational and financial delivery provides a firm platform on which to build as we embark on the next phase of our strategy," Chief Executive Officer Lukas Paravicini said. "Our performance in FY25 adds to our track record of consistent growth, demonstrating the sustainability of our tobacco business and the exciting growth opportunities in next generation products."
Imperial Brands announced a final dividend of 40.08 pence per share. It gives a total dividend of 160.32p per share, up 4.5% from 153.42p.
The best performer on the FTSE 100 was ICG, up 7.3%. Amundi is to snap up a stake in the asset manager, and the duo have launched a partnership.
ICG also announced half-year results, showing assets under management surged 14% on-year to USD124.3 billion at September 30, from USD106.3 billion. AUM advanced 11% from USD112.36 billion at the start of the April, with fundraising of USD9.03 billion and market movements of USD5.09 billion more than offsetting USD4.78 billion of realisations.
The net asset value per share climbed 14% to 900 pence at the end of September from 788p a year prior.
Asset manager Amundi, majority owned by Paris-listed Credit Agricole, will become the "exclusive global distributor in the wealth channel for ICG's evergreen" and some other of the FTSE 100 listing's products.
"This partnership creates exciting new opportunities for both parties. It allows Amundi to benefit from ICG's investment expertise and performance track record to accelerate its distribution of private assets, one of the most dynamic markets in asset management. ICG will benefit from Amundi's international distribution capacity in the wealth channel and its structuring capability in designing investment solutions for wealth clients, a high-growth segment in private markets," ICG said.
Amundi is to acquire a 9.9% stake in ICG, which at current prices is worth some GBP600 million. ICG currently has a market capitalisation of GBP6.06 billion.
Amundi was down 2.5% in Paris.
Gold miners were on the decline, with Fresnillo down 5.6%, the worst large-cap performer. Gold fell to USD4,024.33 an ounce early Tuesday from USD4,071.30 late Monday afternoon.
Elsewhere, Crest Nicholson slumped 11%. It warned annual profit could land below guidance, as the housing market grapples with UK government budget uncertainty. The housebuilder said adjusted pretax profit for the year ended October 31 is expected to be at "the low end of, or marginally below" a guidance range of GBP28 million to GBP38 million. It is an outcome that reflects a "housing market that has remained subdued through the summer, and the continued uncertainty surrounding government tax policy ahead of the forthcoming budget".
"While near-term market conditions are expected to remain challenging, our enhanced operating discipline, improved balance sheet and clear strategic direction provide a robust platform to navigate the current environment and deliver long-term, sustainable growth," Crest Nicholson added.
By Eric Cunha, Alliance News news editor
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