Author: Fiona Craig

European equities moved modestly higher on Monday as trading began for the final full week of the year, a period set to feature several major central bank decisions alongside a backlog of important U.S. economic data releases.

By 08:05 GMT, Germany’s DAX was up 0.4%, France’s CAC 40 had added 0.4%, and the UK’s FTSE 100 was trading 0.5% higher.

Central banks take centre stage

Sentiment has been supported by last week’s decision from the U.S. Federal Reserve to cut interest rates by 25 basis points, helping lift global markets as the year draws to a close.

However, gains were restrained at the start of the week, with investors facing a dense calendar of potential risk events. These include policy meetings at the European Central Bank and the Bank of England, alongside ongoing concerns about stress in China’s property sector.

The ECB is due to announce its decision on Thursday and is widely expected to keep its main interest rate unchanged at 2% for a fourth consecutive meeting. Markets will be watching closely for any indication that policymakers could lean towards a rate hike in 2026, particularly after data showed eurozone growth of 0.3% in the third quarter, well above the ECB’s September projections.

The outlook is less clear at the Bank of England, where Governor Andrew Bailey is expected to shift his stance, potentially tipping the vote in favour of a rate cut. Markets are pricing in a narrow 5–4 decision to lower the benchmark rate to 3.75% from 4.0%.

Other central banks, including Sweden’s Riksbank and Norway’s Norges Bank, are also scheduled to deliver their final policy decisions of 2025 this week.

Focus on delayed U.S. data

Attention will also turn to the release of several postponed U.S. economic indicators, notably October retail sales figures and the closely watched November nonfarm payrolls report.

Federal Reserve Chair Jerome Powell reiterated at the most recent FOMC press conference that future policy moves will depend heavily on incoming data, making this week’s releases particularly important for rate expectations.

In Europe, investors will also assess December PMI surveys, along with updated inflation readings for both the euro area and the UK.

Earlier in the session, data from China showed that industrial production and retail sales rose less than expected in October, while fixed asset investment — a key measure of business spending — contracted more sharply than forecast. The figures reinforced concerns about slowing momentum in the world’s second-largest economy and increased expectations of further stimulus from Beijing.

Worries around China’s property sector also persisted after state-backed developer China Vanke failed to secure creditor approval to extend repayments on a domestic bond due on December 15.

Corporate updates in focus

On the corporate front, with most of the European earnings season now behind markets, Sanofi (EU:SAN) drew attention after the French drugmaker reported that its experimental treatment tolebrutinib failed to meet its primary endpoint in a Phase 3 trial for primary progressive multiple sclerosis.

Separately, Hikma Pharmaceuticals (LSE:HIK) said that Riad Mishlawi has stepped down as chief executive and resigned from the board by mutual agreement.

Oil prices recover slightly

Oil prices edged higher on Monday, recovering modestly after steep declines last week. Traders weighed the risk of potential supply disruptions stemming from rising tensions between the U.S. and Venezuela, alongside speculation around a possible Russia-Ukraine peace agreement.

Brent crude futures rose 0.4% to $61.34 a barrel, while U.S. West Texas Intermediate gained 0.4% to $57.46. Both benchmarks fell by more than 4% last week, largely driven by concerns that global oil supply is growing faster than demand.

Juventus’ (BIT:JUVE) share price staged a sharp rebound after the club’s board formally dismissed a takeover proposal from Tether Investments, triggering a strong positive reaction in the market.

“There is no intention of selling any share of Juventus to third parties, including, but not limited to, the Salvadoran company Tether.” With this statement, Juventus’ board of directors made clear its position on the unsolicited bid from the company behind the USDT stablecoin, sending the club’s shares sharply higher at the open.

The board underlined that Exor and the Agnelli family remain “stable and proud shareholders for over a century, who remain fully committed to the Club, supporting the new management team in implementing a clear strategy aimed at achieving important results both on and off the pitch.”

In early trading, Juventus stock jumped as much as 11%, reaching €2.42 within minutes of the session opening, its highest level since 24 November. Prior to Monday’s rally, the shares had fallen around 27% over the course of 2025, and the club has not reported an annual net profit for almost ten years.

The move followed an announcement from Tether on Friday that it had submitted an unsolicited, binding all-cash offer to Exor to acquire the Agnelli family holding company’s entire stake in Juventus. Tether, which already owns 11.527% of the club, said it would subsequently launch a tender offer for the remaining shares at the same price, fully funded with equity and backed by a long-term commitment to the club.

According to Tether, Exor’s holding represents 65.4% of Juventus’ share capital. The proposed offer price was €2.66 per share, implying an equity valuation of roughly €1.1 billion for 100% of the company, a premium of about 20.74% compared with Juventus’ official share price on 11 December.

The bid was made “for the purpose of demonstrating Tether’s strong belief in the possibility of concluding a mutually satisfactory transaction in a spirit of collaboration, which would be in the best interests of the company and its stakeholders,” the company said.

Tether CEO Paolo Ardoino also shared his views publicly. “From the very beginning, our goal has always been to support the team and bring it back to the glory it deserves,” he wrote on X. He later added: “For me, Juventus has always been a part of my life. I grew up with this team. As a boy, I learned the meaning of commitment, resilience, and responsibility, watching Juventus face success and adversity with dignity. These lessons stayed with me long after the final whistle. Our interest in Juventus is born of deep admiration and respect. Juventus is a symbol of Italian excellence with a truly global presence , built over generations through hard work, ambition, and the unwavering loyalty of its fans.”

Despite these declarations, Juventus’ response was unequivocal. The board unanimously rejected the proposal, reiterating that the club “is a historic and successful club, of which Exor and the Agnelli family have been stable and proud shareholders for over a century, and they remain fully committed to the Club, supporting its new management team in executing a clear strategy to achieve excellent results both on and off the pitch.”

Exor CEO John Elkann reinforced that stance in a video message. “Juve has been part of my family for 102 years. It’s part in the truest sense of the word, because over the course of a century, four generations have expanded it, made it strong, cared for it in difficult times, celebrated it in happy times,” he said.

He concluded by broadening the message beyond shareholders: “But not only that: Juve is part of a much larger family, the Bianconeri family, made up of millions of fans who love Juve as they love their loved ones. Precisely because of this passion, this love story that has united us for over a century, as a family we continue to support the team and look to the future, to build a winning Juve. Juventus, our history, our values are not for sale ,” Elkann concluded.

Sanofi SA (EU:SAN) shares moved lower on Monday after the drugmaker announced that its experimental treatment tolebrutinib did not achieve the primary endpoint in a Phase 3 trial targeting primary progressive multiple sclerosis (PPMS).

The stock was down 4.4% in Paris by 09:07 GMT. Sanofi said the PERSEUS trial showed that tolebrutinib failed to significantly delay the time to six-month composite confirmed disability progression versus placebo in PPMS patients, who account for roughly 10% of the total multiple sclerosis population.

Following the outcome, the company confirmed it will not seek regulatory approval for tolebrutinib in PPMS.
“We are disappointed by today’s results; however, we do believe that these results will improve our understanding of the underlying disease biology of multiple sclerosis,” said Houman Ashrafian, Executive Vice President, Head of Research & Development at Sanofi.

Sanofi noted that the safety profile observed in the PERSEUS study was in line with earlier trials. Drug-induced liver injury remains a recognised risk and continues to require close monitoring.

Tolebrutinib has already received provisional approval in the United Arab Emirates, granted in July 2025 for non-relapsing secondary progressive multiple sclerosis (nrSPMS). The therapy is currently under regulatory review in the European Union and other regions, and was granted breakthrough therapy designation by the U.S. Food and Drug Administration in December 2024.

In the United States, Sanofi now expects the FDA’s review of tolebrutinib for nrSPMS to extend beyond the previously indicated target action date of 28 December 2025. The company said further regulatory guidance is expected by the end of the first quarter of 2026.

At the request of the FDA, Sanofi has submitted an expanded access protocol for nrSPMS patients. The group reiterated that it continues to have strong conviction in the drug’s risk-benefit profile for this indication.

Commenting on the development, Jefferies analysts led by Michael Leuchten said: “Whilst the failure of the PPMS PERSEUS trial for tolebrutinob is a negative surprise (albeit safety is ok), the significant bigger commercial opportunity is in nrSPMS where the delay to the FDA PDUFA data is confusing but explainable.”
They added: “The fact that the FDA has requested an extended access program suggests the agency is comfortable with the risk/benefit for now (REMS in place). We expect the market will write the asset off, but it seems premature.”

Sanofi also announced it will carry out an impairment review of the intangible asset value associated with tolebrutinib. The outcome will be disclosed alongside the company’s fourth-quarter and full-year 2025 results in January 2026. Sanofi said the review will not affect business net income, business earnings per share, or its financial guidance for 2025.

PERSEUS was a global, randomised, double-blind Phase 3 trial comparing a daily oral dose of tolebrutinib with placebo in patients with PPMS, with treatment lasting up to around 60 months.

Tolebrutinib is an investigational oral, brain-penetrant Bruton’s tyrosine kinase inhibitor designed to target neuroinflammation, a key factor driving disability progression in multiple sclerosis.

UK equities moved higher in early trading on Monday, while the pound showed little movement against the US dollar. European stock markets also opened in positive territory.

At 08:17 GMT, the FTSE 100 was up 0.5%, while sterling edged 0.01% lower against the dollar to 1.33. Elsewhere in Europe, Germany’s DAX rose 0.2% and France’s CAC 40 gained 0.4%.

UK round-up

Hikma Pharmaceuticals PLC (LSE:HIK) announced that Riad Mishlawi has stepped down as Chief Executive Officer and resigned from the Board by mutual agreement. Executive Chairman Said Darwazah, who previously held the CEO role, has taken over chief executive responsibilities with immediate effect. Chief Financial Officer Khalid Nabilsi will also join the Board and take on broader management duties to reinforce execution of the company’s strategic priorities.

Separately, the UK’s Financial Reporting Council said it has opened an investigation into Ernst & Young’s audit of Shell PLC’s 2024 financial statements. The inquiry will assess whether EY breached the UK Revised Ethical Standard, specifically in relation to limits on audit partner tenure.

In regulatory news, the Financial Conduct Authority outlined proposals to overhaul mortgage rules in an effort to make home ownership more accessible, particularly for first-time buyers and the self-employed. The planned reforms focus on four key areas and are also intended to help homeowners release housing equity to support retirement planning.

Meanwhile, Jefferies struck a more cautious tone on UK consumer stocks, pointing to a weakening outlook for household disposable income that it believes is at odds with upbeat sales forecasts and elevated valuations. The broker expects disposable income growth to slow to 1.9% in the 2026/27 fiscal year, down from 2.6% previously, reflecting softer wage growth, higher unemployment and persistent cost pressures.

Jefferies also noted that consensus expectations for like-for-like sales growth at major UK retailers have now exceeded its disposable income growth forecast for the first time since early 2023.

Shares in TT Electronics Plc (LSE:TTG) fell sharply on Monday, dropping 17.7%, after DBAY Advisors Limited confirmed it would not move forward with a takeover bid, bringing an end to expectations of a potential bidding contest.

In a regulatory statement released ahead of the 15 December deadline imposed by the Panel on Takeovers and Mergers, DBAY said it “does not intend to make an offer for TT Electronics ”. The decision follows comments made earlier on 9 December, when DBAY disclosed that it was evaluating a possible approach for the electronics group.

Although DBAY has stepped back from pursuing an acquisition, it reiterated its negative view of a rival proposal from Cicor, describing the terms of that offer as “unattractive”. DBAY also confirmed that it plans to vote against Cicor’s proposed scheme of arrangement.

DBAY added that it has retained the option to revisit a potential bid under specific circumstances, including if Cicor were to withdraw its offer or if another third party were to announce a firm intention to make an offer for TT Electronics.

The withdrawal represents a notable shift in the ongoing takeover situation, increasing uncertainty around the company’s future ownership. With DBAY no longer in contention, Cicor’s proposal now stands as the sole active offer for TT Electronics.

More about TT Electronics

TT Electronics Plc is a UK-based global manufacturer of electronic components and systems, serving markets including aerospace, defence, medical, transportation and industrial sectors. The group focuses on providing engineered solutions for performance-critical applications, with operations across Europe, North America and Asia.

Pantheon Resources plc (LSE:PANR) has confirmed that Jay Cheatham, Non-Executive Director and former Chief Executive, has retired from the Board as part of the company’s long-term succession planning.

Cheatham played a central role in Pantheon’s development over the past 17 years, helping to shape its strategy and advance its asset base. His departure marks a period of transition as the company continues to focus on progressing its core projects.

Pantheon remains focused on developing the Ahpun and Kodiak fields on Alaska’s North Slope, with management targeting a move towards financial self-sufficiency. The group believes its 100% ownership of the assets and proximity to existing infrastructure provide competitive advantages that could support efficient development.

While the company continues to face operational and financial challenges, including negative profitability and cash flow, recent corporate developments and strategic initiatives offer potential upside. These factors contribute to a cautiously improved outlook despite ongoing valuation concerns.

More about Pantheon Resources

Pantheon Resources plc is an AIM-listed oil and gas company focused on the development of its wholly owned Ahpun and Kodiak fields, located on State of Alaska land on the onshore North Slope of the United States. The company’s strategy is to unlock long-term value by advancing these assets efficiently, with a stated aim of achieving market recognition of around US$5 per barrel of recoverable resources by the end of 2028.

Helium One Global Ltd (LSE:HE1) has reported that construction of the production facility at the Galactica Project in Colorado is nearing completion, marking a key milestone for the joint venture with Blue Star Helium.

The facility has successfully passed pressure testing and is now preparing to enter the commissioning phase. Subject to final checks, first gas production is expected before the end of the year, signalling the transition of the project from development into production.

Reaching this stage represents a significant step for the partnership and could strengthen Helium One’s position in the helium market at a time when global supply remains constrained. However, the company continues to face financial challenges, with ongoing losses and limited revenue weighing on its near-term outlook. While recent operational progress is encouraging, valuation metrics and mixed technical signals suggest a cautious stance.

More about Helium One Global Limited

Helium One Global Ltd is a helium exploration and development company with assets in Tanzania and the United States. The group holds a 50% working interest in the Galactica–Pegasus helium development project in Colorado and a portfolio of helium licences across two continents. Its flagship project in Tanzania’s southern Rukwa Rift Basin has progressed into the appraisal and development stage following a successful exploration programme.

Filtronic PLC (LSE:FTC) has been selected by a leading European defence prime contractor to progress to the next phase of an electronic sensor programme, securing an Authorisation to Proceed valued at around £7 million.

The award forms part of a wider contract expected to be worth approximately £11 million over a two-year period. Work will be delivered from Filtronic’s new microelectronics manufacturing facility in Sedgefield, highlighting the company’s growing role in supplying advanced RF and electronic solutions to the defence sector.

Management said the contract underlines Filtronic’s capability to meet sustained demand for high-performance technology and further strengthens its position within a market benefiting from increased long-term defence spending. The programme also reflects confidence in the company’s operational scale-up and technical expertise.

Strong financial performance and recent contract momentum continue to support a positive outlook. While valuation metrics point to moderate pricing and the absence of a dividend remains a consideration, technical indicators suggest continued strength, with only limited concerns around near-term overbought conditions.

More about Filtronic

Filtronic is a specialist in advanced microelectronics, designing and manufacturing mission-critical communication and sensor systems. The company operates two global manufacturing facilities and three engineering centres, serving sectors including space, aerospace, defence and telecoms infrastructure. Filtronic is recognised for its innovation-led approach, deep technical expertise and extensive patent portfolio, delivering solutions that enhance connectivity and high-speed data transmission.

Cadence Minerals (LSE:KDNC) has reported a major step forward at its Amapá Iron Ore Project in Brazil after reaching a court-approved settlement with the Municipality of Pedra Branca do Amapari, resolving a number of long-standing municipal legacy matters.

The agreement removes historical administrative constraints that had affected the project, including restrictions on ore transportation, and establishes a more certain regulatory framework for future operations. Management said the outcome significantly improves the operating environment and reduces project-level risk.

Cadence continues to progress its phased redevelopment plan for Amapá, with an emphasis on careful risk management and building sustainable long-term value. Recent technical work and funding arrangements are supporting the next stages of advancement as the company moves the project closer to redevelopment.

More about Cadence Minerals

Cadence Minerals is a mining company focused on the development and management of mineral resources. Its activities centre on iron ore projects, most notably the Amapá Iron Ore Project in Brazil, where the company is working to restart and optimise production under an improved regulatory and operational framework.

Gore Street Energy Storage Fund PLC (LSE:GSF) has reported a reduction in net asset value, with NAV per share falling to 90.1 pence following updates to third-party revenue assumptions for both the UK and US energy storage markets.

Despite the valuation adjustment, the fund continued to expand its operational footprint during the period, increasing total installed capacity to 643.1 MW. The company also declared dividends that were fully supported by cash generated from operations, underscoring the resilience of its underlying assets.

Management is pursuing a range of initiatives aimed at improving performance, including revenue optimisation measures, cost reduction efforts and selective asset augmentation. The fund is also leveraging its proprietary GSET trading platform to enhance returns across its portfolio. Longer term, demand for battery storage is expected to remain strong, supported by the continued rollout of renewable energy and favourable regulatory frameworks.

While revenue volatility and margin pressure remain challenges, Gore Street benefits from a solid balance sheet, recent capacity growth and a comparatively high dividend yield. These factors contribute to its appeal among income-focused investors, even as operational efficiency remains a key area of focus.

More about Gore Street Energy Storage

Gore Street Energy Storage Fund PLC operates in the battery energy storage sector, investing in and managing battery energy storage systems designed to support grid stability and efficiency. The company’s portfolio plays a key role in enabling the integration of renewable energy across power networks.