Author: Fiona Craig

European equities experienced sharp swings throughout November as mounting anxiety over a potential AI-fueled market bubble and tightening liquidity conditions triggered the steepest equity pullback since “Liberation day,” Barclays said in its latest European Equity Strategy report.

The bank noted that equity returns were the weakest since March, while performance for a global 60:40 portfolio was essentially flat, weighed down by stock market gains that were “slightly in the red,” according to the report completed on Nov. 30 and published Dec. 1.

Barclays highlighted that markets endured elevated intra-month turbulence as investors reacted to “AI angst and doubts over Dec Fed cuts,” before renewed expectations for rate reductions late in the month helped equities claw back most losses and allowed bonds to eke out a small advantage.

The firm added that Europe “outperformed marginally with periphery doing well as banks outperformed,” although worries about Germany’s fiscal stance created some drag on the region.

In the UK, equities largely moved in step with global peers, while gilts rallied following the government’s budget announcement, boosting domestic stocks and bond-proxy sectors into month-end.

Technology shares were the worst global performers as “AI bubble concerns” spurred selling, while defensive sectors led the gains. Healthcare posted the strongest defensive showing as fears about drug-pricing reforms eased, and financials outperformed on solid earnings and steady yields.

Some assets were hit particularly hard during the sell-off. Bitcoin slumped 17% amid liquidity worries and weak retail engagement, oil prices fell due to oversupply, while gold and industrial metals advanced in part on demand linked to AI capital-expenditure trends.

Investor flows provided a mixed picture. Barclays reported that, despite heightened volatility, equity inflows reached year-to-date highs in November. Hedge funds trimmed exposure, retail investors stayed cautious, and “real money buying was notable across regions.”

Europe and Japan recorded modest inflows, while emerging markets benefited from stronger demand, including renewed foreign investor interest in China.

Factor trends diverged sharply between the U.S. and Europe. In the U.S., momentum weakened significantly, weighing on growth stocks, whereas in Europe momentum unwound only slightly and value continued to “outperform.” Low-volatility defensive names gained from the volatility spike, and weakness in large AI-linked technology firms helped small-caps outperform.

Barclays said that global developed markets beat emerging markets overall, with equities in China, Korea, and Taiwan pressured by pullbacks in AI-related trades after months of strong gains. Japan lagged as proposed fiscal stimulus raised debt concerns and fuelled instability in the bond market.

Overall, Barclays described November as a month marked by abrupt swings driven by the evolving AI narrative and shifting expectations for central-bank easing. Despite the turbulence, most losses were recovered by month-end.

Airbus (EU:AIR) said Monday that airline operations are gradually returning to normal as carriers complete a wave of unexpected software updates faster than initially projected, following the discovery of a solar-radiation vulnerability that temporarily grounded 6,000 aircraft.

Airlines across Asia, Europe, and the U.S. confirmed they had applied the mandatory update issued after investigators determined that a recent JetBlue A320 incident revealed sensitivity to solar flares. Regulators instructed operators to install the fix before putting their aircraft back into service.

According to Airbus, most of the roughly 6,000 A320-family aircraft covered by the alert have now been updated, leaving fewer than 100 still awaiting the patch. A small subset of jets will need a more time-consuming process, prompting Colombia’s Avianca to briefly halt new bookings through December 8.

Airbus shares fell 2.3% in early European trading on Monday.

The issue surfaced when Airbus identified that intense solar radiation could disrupt a critical flight-control computer. The recall affected nearly 6,000 jets across the A320 family, including A318, A319, A320, and A321 models.

Most aircraft were cleared to resume flying within hours after receiving the update, which typically required only a short maintenance window.

Airbus launched its investigation following an October incident in which an A320 flying between the U.S. and Mexico experienced a sudden loss of altitude. Engineers later traced the event to a particular flight-control software standard that, in rare cases, could be corrupted by strong solar activity.

The manufacturer noted that around 5,100 aircraft can be addressed with a software roll-back, while approximately 900 older jets will need full hardware replacements. Those aircraft will have to be ferried to maintenance centres and will stay out of passenger service until upgrades are complete.

Airbus reiterated that the problem will not impact its production timeline — a sign, RBC Capital Markets analyst Ken Herbert wrote, that the company “will not use this issue as a reason for not hitting its 2025 delivery guidance.”

Herbert added that although hardware changes carry higher costs, the financial impact is “likely less material than initially feared by investors.”

Goldman Sachs analysts said attention is now shifting to the availability of replacement parts and any knock-on effects heading into next year. While the software update itself is inexpensive, the bank cautioned that aircraft downtime and tight spare-parts supply could introduce a “risk of aircraft delivery disruption” in 2026.

The eurozone’s manufacturing sector lost steam in November as incoming new orders declined, according to the latest HCOB Eurozone Manufacturing PMI figures published Monday.

The headline PMI slipped to 49.6 from October’s 50.0, dropping below the key 50.0 mark that signals expansion versus contraction. The reading—its weakest in five months—indicates a renewed, albeit mild, deterioration in manufacturing conditions across the bloc.

The Manufacturing PMI Output Index also edged down, falling to 50.4 from 51.0 in October. While still pointing to modest growth, the measure hit a nine-month low.

Performance diverged sharply across member states. Germany and France, the eurozone’s largest economies, saw their PMI readings slide to nine-month lows at 48.2 and 47.8 respectively. By contrast, Ireland posted the strongest expansion with a reading of 52.8, closely followed by Greece at 52.7.

New orders—the most influential component of the PMI—declined again after briefly stabilising in October. Export orders fell for the fifth straight month, underscoring persistent weakness in external demand.

Despite these pressures, output continued to grow for a ninth consecutive month, though at the slowest pace of the current recovery phase. Manufacturers intensified cutbacks, with employment levels, purchasing activity, and inventories all contracting more sharply than in October. The rate of job losses was the steepest since April.

Supply chain strains also worsened. Suppliers’ delivery times lengthened to their highest level since October 2022, contributing to a notable uptick in input costs—the most pronounced increase since March, following months of relative price stability in 2025.

“The current picture of the eurozone is sobering, as the manufacturing sector is unable to break out of stagnation and is even tending towards contraction,” said Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank.

Still, sentiment among manufacturers improved, rising above its long-run average to the strongest level since June. Dr. de la Rubia added that “most companies in the eurozone are confident that they will be able to expand their production in the next twelve months,” with confidence strengthening in Germany and shifting from pessimism to optimism in France.

UK equities edged down at Monday’s open, with the pound also continuing its decline against the US dollar. Broader European markets mirrored the cautious tone.

By 0817 GMT, the FTSE 100 dipped 0.1%, while GBP/USD eased 0.07% to 1.32. Germany’s DAX and France’s CAC 40 both traded 0.4% lower.

UK Market Highlights

EasyJet PLC (LSE:EZJ)
EasyJet has finished the required software updates on its Airbus A320-family aircraft following a global directive issued by Airbus. The changes were completed over the weekend without affecting flight schedules. The airline reiterated that its financial outlook remains consistent with its FY2025 guidance released on 25 November.

Wizz Air Holdings PLC (LSE:WIZZ)
Wizz Air confirmed it has updated the software on 83 aircraft that were subject to a European Union Aviation Safety Agency (EASA) airworthiness directive issued last Thursday. The directive required modifications to the Elevator Aileron Computer (ELAC) on select aircraft in its fleet.

Plus500 Ltd (LSE:PLUSP)
Plus500 has been selected as the clearing partner for CME Group and FanDuel’s new event-based contracts platform. The firm will deliver brokerage-execution and clearing services to FanDuel Prediction Markets, a non-clearing FCM formed by CME and FanDuel.

Tullow Oil PLC (LSE:TLW)
Tullow Oil has appointed Roald Goethe as independent non-executive Chair, effective Monday. Goethe, a board member since February 2023, brings significant African oil market expertise from roles at Trafigura Group and his own venture, Delaney Petroleum Ltd.

Peel Hunt Ltd (LSE:PEEL)
Peel Hunt reported a 38.3% increase in revenue to £74.4 million for the six months to 30 September 2025. Profit before tax surged to £11.5 million from £1.2 million a year earlier, with adjusted profit before tax climbing to £18.7 million. Investment Banking revenue rose 45.6% to £32.9 million, largely driven by M&A advisory work. The firm advised on 10 M&A deals worth £8.1 billion, placing it third in UK public M&A rankings.

TRIG (LSE:TRIG)
The Renewables Infrastructure Group announced that HICL Infrastructure has withdrawn from their proposed merger announced on 17 November. Chair Richard Morse expressed disappointment that investors will not be able to vote on creating what would have been the UK’s largest listed infrastructure investment vehicle.

Impax Asset Management Group Plc (LSE:IPX)
Impax reported a reduction in assets under management to £26.1 billion for the year ended 30 September, down from £37.2 billion a year earlier. The firm saw £13.0 billion in net outflows, with revenue falling 16.6% to £141.9 million and adjusted operating profit dropping 36.2% to £33.6 million.

Wynnstay Group (LSE:WYWYN)
Wynnstay expects its underlying trading results for the year to 31 October 2025 to slightly exceed market expectations. Adjusted profit before tax is anticipated at around £9.0 million, above the £8.5 million consensus.

Political Developments

UK Chancellor Rachel Reeves has rejected claims that she misled the public ahead of the autumn statement. Questions have surfaced regarding a 4 November pre-budget speech—an unusual move for a chancellor—in which she urged public backing for her fiscal plans but did not restate Labour’s pledge against broad-based tax increases.

Global News

A court in Bangladesh has sentenced UK MP and former minister Tulip Siddiq to two years in prison over allegations of improper land allocation. The verdict was issued in absentia. Former Prime Minister Sheikh Hasina—Siddiq’s aunt—received a five-year sentence, while Hasina’s sister Sheikh Rehana was handed a seven-year term in the same case.

Plus500 Ltd. (LSE:PLUS) has been selected as the clearing partner for the new event-based contracts platform launched by CME Group (NASDAQ:CME) and FanDuel, the company announced Monday.

Under the agreement, the global multi-asset fintech firm will deliver brokerage-execution and clearing services to FanDuel Prediction Markets—a non-clearing Futures Commission Merchant created through a joint venture between CME Group and FanDuel, part of Flutter Entertainment plc (LSE:FLTR). The partnership enables Plus500 to leverage its infrastructure to provide secure, scalable market access for the FCM’s users.

The collaboration highlights Plus500’s strength as a market infrastructure provider, underpinning execution, settlement, and risk management in the growing event-driven trading space. Its proprietary technology, regulatory capabilities, and institutional-grade systems support the delivery of clearing services for future products and global event-based markets.

Chief Executive Officer David Zruia described the appointment as “a historic milestone” that showcases the firm’s credibility and execution capabilities. “It also demonstrates the superiority of our operational processes and status as a global multi-asset fintech group on the international stage. We are proud to work with the CME and FanDuel to broaden global market access for millions of new customers,” he said.

Plus500 operates its own technology-driven trading platforms and is licensed across numerous jurisdictions, including the UK, Australia, Cyprus, Israel, and the US. The firm offers access to more than 2,500 financial instruments in over 60 countries and supports trading in 30 languages.

Peel Hunt Limited (LSE:PEEL) reported a sharp uplift in performance for the six months to 30 September 2025, with group revenue rising 38.3% year-on-year to £74.4 million.

Profit before tax jumped to £11.5 million, an 858.3% increase from £1.2 million a year earlier. On an adjusted basis—excluding share-based payment charges and exceptional items—profit before tax climbed 306.5% to £18.7 million.

Each of the firm’s business units contributed to the momentum. Investment Banking delivered a 45.6% revenue increase to £32.9 million, with M&A advisory accounting for around 70% of total Investment Banking fees. Peel Hunt advised on 10 public M&A deals worth a combined £8.1 billion, placing the firm third in the UK league tables.

Research & Distribution posted modest growth of 2.2% to £13.9 million, while Execution Services recorded its strongest half-year since the COVID lockdowns, generating £27.6 million in revenue—a 56.8% increase.

The company continued to streamline operations, cutting headcount by more than 15% from its FY23 peak and trimming underlying fixed costs by roughly £5.0 million for FY26. Net assets rose to £100.7 million, up from £88.7 million at the end of March 2025.

Chief Executive Officer Steven Fine said: “I am delighted with the Group’s strong financial performance in the first half, which reflects the significant strategic progress we have made in recent years.”

Peel Hunt added that trading in the second half has begun positively, and it remains confident in meeting full-year market expectations.

EasyJet (LSE:EZJ) has carried out the required software updates on its Airbus A320 fleet in response to a global directive from Airbus, completing the work over a single weekend without any disruption to scheduled flights. The swift implementation underscores the airline’s commitment to safety and operational reliability, and it confirms that EasyJet’s previously issued financial guidance remains unchanged.

EasyJet’s positive outlook is supported by a strong financial recovery and an appealing valuation. Although technical indicators present a mixed picture, the company’s solid balance sheet and undervalued share price help sustain a favourable investment view.

More about EasyJet

EasyJet plc is a major European low-cost carrier, operating a large fleet dominated by Airbus A320-family aircraft. The airline focuses on delivering affordable, reliable air travel across Europe while upholding high standards of safety and operational efficiency.

ECO Animal Health Group (LSE:EAH) posted a solid set of half-year results for 2025, with revenue rising 19% to £39.4 million and gross margins improving to 49.6%. Growth was driven by stronger sales volumes, price optimisation, and reduced input costs, supporting an adjusted EBITDA of £3.0 million. The company also achieved a major R&D milestone, securing a Positive Opinion from the European Medicines Agency for its poultry vaccine, ECOVAXXIN® MS. This development clears a path for commercial launch in the EU in the second half of 2026 and marks meaningful progress in ECO’s innovation pipeline.

ECO Animal Health’s outlook benefits from its sound financial footing and constructive technical signals. Nevertheless, an elevated P/E ratio raises questions around valuation, and uneven revenue trends introduce some risk to forward profitability. Limited disclosure from earnings calls or corporate updates provides few additional data points.

More about Eco Animal Health

ECO Animal Health is a global veterinary pharmaceutical company specialising in treatments and vaccines for pigs and poultry. Headquartered in the UK, the business markets its products worldwide and holds regulatory approvals in more than 70 countries.

Vast Resources plc (LSE:VAST) has reported encouraging results from its recent diamond tender, selling 123,711.8 carats of lower-value gem and industrial stones at an average price of $6.87 per carat. The tender covered multiple stone categories and showcased the company’s ability to successfully market its diamond output. Vast retains a further parcel of roughly 135,139.47 carats of higher-quality stones reserved for future sales, positioning the company for additional revenue opportunities as it refines its sales strategy.

Vast Resources’ outlook remains heavily shaped by ongoing financial pressures, including persistent losses and negative equity, which weigh on overall performance metrics. Even so, recent corporate progress and select favourable technical signals offer some potential for strategic improvement. Valuation concerns persist given the company’s lack of profitability.

More about Vast Resources

Vast Resources plc is a UK-based mining company with operations across Romania, Tajikistan, and Zimbabwe. Its portfolio includes the Baita Plai and Manaila polymetallic mines in Romania, participation in Tajikistan’s Takob processing facility and Aprelevka gold mines, and exploration interests in Zimbabwe as it seeks to advance a range of high-quality mining projects.

Wynnstay Group plc (LSE:WYN) has issued a robust year-end trading update for the period to 31 October 2025, reflecting the positive impact of Project Genesis. The initiative has sharpened commercial execution, strengthened pricing discipline, and improved margins—resulting in adjusted profit before tax of around £9.0m, ahead of market expectations. The Feed & Grain division posted higher profitability despite softer volumes, while the Arable segment benefited from increased fertiliser and seed activity. Retail sales held steady, and disciplined cost management supported improved net margins.

Wynnstay has also completed key integration and asset review measures, including consolidating trading operations and closing select facilities—steps that have reduced costs and streamlined the business. Although these actions carried some one-off expenses, the group ends the year with a strong cash position that supports future investment. The company notes that the HSE investigation into the January 2025 fatality remains ongoing.

Wynnstay’s outlook reflects solid financial resilience and healthy cash generation, tempered by declining revenue and profitability indicators. Technical trends appear neutral, while a strong dividend yield continues to underpin the valuation. Limited disclosure from earnings calls and corporate events provides few additional signals.

More about Wynnstay

Wynnstay Group plc supplies livestock and arable farmers with high-quality products, expert advice, and efficient services designed to promote sustainable and profitable food production. The company prioritises strong customer support to help farmers achieve optimal returns on investment.