Category: Market News

U.S. markets were set to open higher on Thursday after President Donald Trump signed a funding bill that officially ends the longest federal government shutdown on record. With Washington back to work, traders are preparing for the return of delayed economic reports, although the White House has cautioned that several major October indicators may never be released. Meanwhile, Cisco Systems lifted its full-year guidance on the back of surging AI-related demand, and the latest U.K. data shows only marginal growth in the British economy during the third quarter.

Futures edge upward

U.S. index futures moved higher early Thursday as investors welcomed the resolution of the prolonged shutdown.

As of 02:59 ET, Dow futures were up 89 points (+0.2%), S&P 500 futures gained 6 points (+0.1%), and Nasdaq 100 futures climbed 37 points (+0.2%).

The previous trading session ended with a mixed performance: the Dow Jones Industrial Average set another record close, the S&P 500 posted a small gain, while the Nasdaq Composite dropped as investors rotated out of high-valuation tech names.

Sentiment took an additional hit after a report suggested ChatGPT developer OpenAI may be dealing with much higher expenses and cash burn than expected—adding to worries surrounding overstretched AI-linked stocks.

Even so, Advanced Micro Devices (NASDAQ:AMD) surged 9% after unveiling an ambitious $100 billion revenue target for its data-center division.

Trump signs funding bill, officially closing chapter on 43-day shutdown

Late Wednesday, President Donald Trump signed legislation reopening the U.S. government, concluding the 43-day shutdown—the longest in U.S. history. The bill cleared the House in a 222–209 vote earlier in the day, mostly along party lines, after receiving Senate approval earlier in the week.

The Oval Office signing effectively reinstated federal workers and ensured the resumption of paychecks, reversing weeks of forced furloughs. However, the core dispute over expanded Affordable Care Act subsidies—central to the budget standoff—remains unresolved.

For Wall Street, the end of the shutdown means the return of key economic releases that policymakers and investors rely on. As ING analysts noted: “With a bit of luck, we may see job numbers starting early next week,” though the administration has also warned that October’s jobs and inflation data may never be released. Such gaps could leave the Federal Reserve with limited information ahead of its December rate meeting.

Cisco boosts annual outlook

Shares of Cisco Systems (NASDAQ:CSCO) jumped more than 7% in after-hours trading after the company upgraded its full-year financial outlook.

Riding the wave of AI-driven data-center expansion, Cisco now expects fiscal 2026 revenue of $60.2 billion to $61 billion—up from its earlier forecast of $59–60 billion. It also raised its adjusted earnings-per-share projection to $4.08–$4.14 from $4–$4.06.

Cisco also said it anticipates generating $3 billion in AI infrastructure-related revenue in its current fiscal year. The company’s stock is up roughly 25% year-to-date as businesses accelerate cloud and data-center investment to support AI workloads.

U.K. economy gains only slightly in Q3

The U.K. economy posted only modest growth during the third quarter and contracted in September as the country heads toward a budget that is expected to include significant tax increases.

Data from the Office for National Statistics showed GDP rising 0.1% between July and September, after a 0.3% gain in the previous quarter. Monthly GDP slipped 0.1% in September, and annual growth slowed to 1.3%.

Gold pushes above $4,200

Gold prices climbed above $4,200 per ounce on Thursday, extending their recent rally amid lingering uncertainty about the U.S. economic outlook despite the end of the shutdown.

The metal has strengthened over the past week following weak private-sector labour figures that increased expectations of a December rate cut by the Federal Reserve. However, the pace of gains has moderated amid reports that Fed officials remain split on whether easing is warranted next month.

Strong central-bank demand—especially from China—continues to support bullion. Recent data show the People’s Bank of China added to its gold reserves for the twelfth consecutive month in September.

European markets traded mostly higher on Thursday, lifted by the end of the record-long U.S. government shutdown, while fresh data showed the U.K. economy struggling to gain momentum in the third quarter.

By 08:05 GMT, Germany’s DAX inched up 0.1% and France’s CAC 40 advanced 0.6%, whereas the U.K.’s FTSE 100 slipped 0.3%.

U.S. Shutdown Ends

Market sentiment improved after U.S. President Donald Trump signed a bill late Wednesday that restored government funding and officially ended the longest shutdown in American history.

The bill—which keeps federal operations funded through January 30—passed the House by a 222–209 vote, with support from 216 Republicans and six Democrats, after clearing the Senate earlier in the week.

The multi-week shutdown had caused significant disruption across federal agencies, with aviation and travel safety especially hard hit. Staffing shortages led to thousands of cancelled flights nationwide, adding pressure to U.S. economic activity.

U.K. Growth Nearly Stagnant

Back in Europe, new figures confirmed that the U.K. economy barely expanded in the third quarter, underscoring the sluggish backdrop as finance minister Rachel Reeves prepares to present the upcoming budget.

GDP grew just 0.1% in Q3 2025, down from 0.3% in the prior quarter, according to the Office for National Statistics. In September alone, output fell 0.1%.

James Bentley, director at Financial Markets Online, said: “Last week the Bank of England said that, in its view, inflation has peaked. Despite narrowly voting to not cut the base rate immediately, the Bank’s Monetary Policy Committee left the door wide open to a December cut.”

He added: “Today’s GDP numbers give the Bank every reason to walk through that door next month. With inflationary fears dissipating, its priority will be kickstarting the UK’s moribund growth – and a December rate cut now looks all but assured.”

Corporate Earnings Continue

European corporate news remained active:

• Siemens (TG:SIE) posted record profit and free cash flow for fiscal 2025, marking its third straight year of record earnings as strength in Digital Industries and Smart Infrastructure offset weaker Mobility orders.
• Merck KGaA (NYSE:MRK) lifted the lower end of its 2025 outlook after stronger-than-expected third-quarter results, supported by solid healthcare and life sciences performance.
• Deutsche Telekom (TG:DTE) raised its 2025 guidance following the inclusion of UScellular, and said it plans a higher dividend after reporting stronger Q3 revenue.
• Aviva (LSE:AV.) projected 11% annual growth in operating EPS over the next three years, benefiting from enhanced cost synergies after integrating Direct Line.
• Burberry (LSE:BRBY) delivered better-than-estimated second-quarter comparable sales, signalling early traction in its turnaround plan and stabilizing demand in China.
• Hapag-Lloyd (TG:HLAG) reported a 50% decline in nine-month profit and lowered the top end of its annual guidance, citing market volatility and rising costs.
• Rolls-Royce (LSE:RR.) reiterated its 2025 outlook after strong October trading supported by Civil Aerospace, Power Systems and Defence.

Oil Prices Extend Losses

Crude prices moved slightly lower, adding to Wednesday’s decline, as rising U.S. stockpiles renewed demand worries.

Brent slipped 0.1% to $62.63 a barrel, while WTI fell 0.2% to $58.39. Both benchmarks lost around 4% on Wednesday after API data showed U.S. inventories climbed by 1.3 million barrels in the week to November 7.

Oil also weakened after OPEC projected that global supplies will marginally exceed demand in 2026.

Shawbrook Group plc (LSE:SHAW) reported another quarter of solid expansion on Thursday, marking its first trading update since rejoining the public markets. The specialist lender continued to grow across both its lending operations and deposit franchise.

As of September 30, the loan book had risen to £18.25 billion, up from £15.93 billion at the end of December 2024. The increase was driven by strong organic demand in the group’s specialist Commercial and Retail divisions, along with the acquisition of ThinCats Group Limited, which contributed an additional £0.6 billion in loans.

The deposit base also expanded, growing 15% on an annualised basis to £17.58 billion compared with £15.80 billion at year-end 2024.

Credit quality remained stable, with a cost of risk of 45 basis points and an arrears ratio of 1.9%. Shawbrook’s adjusted underlying return on tangible equity held firm at 17.8%. Capital levels were solid as well, with a CET1 ratio of 12.6% and a total capital ratio of 15.1% on a post-IPO pro forma basis.

Commenting on the results, Chief Executive Officer Marcelino Castrillo said: “In our first trading update since returning to the public markets, we are pleased to report continued growth across our diversified lending markets and deposit franchise, demonstrating the strength of our business model and disciplined execution.”

The quarter also saw the completion of several strategic priorities, including the acquisition of ThinCats, the continued expansion of Shawbrook’s Digital Savings platform into Business Savings originations, and a new partnership with Hargreaves Lansdown to support its first branded cash savings product.

Shawbrook’s shares began trading on the Main Market of the London Stock Exchange on November 4.

The group said it continues to evaluate its exposure to historic regulated motor finance lending but expects any potential redress to be immaterial based on early findings.

Looking ahead, Shawbrook outlined medium-term goals that include low double-digit annual loan book growth, a mid-30s underlying cost-to-income ratio, mid-to-high-teens annual growth in underlying profit before tax, and a high-teens adjusted underlying return on tangible equity. The lender plans to issue its first dividend in fiscal year 2026.

Grafton Group PLC (LSE:GFTU) saw its shares fall 2.5% on Thursday after the building materials distributor reported slower trading momentum in recent months, even as it reiterated that full-year profit guidance remains intact.

The company posted group revenue of £2.13 billion for the ten months to October 31, an 11.5% increase from £1.91 billion a year earlier. However, like-for-like daily revenue growth eased to 1.6% in the four months to October, compared with 2.4% in the first half, with activity softening further in September and October.

Despite this slowdown, Grafton said it is still on course to deliver full-year adjusted operating profit in line with analyst expectations of around £182.2 million. Recent acquisitions—including HVAC distributor Salvador Escoda and HSS Hire Ireland—also contributed to group performance.

Chief Executive Eric Born said: “The strength of Grafton’s business model is evident in our performance year to date. Overall revenue increased by over 11 per cent supported by continuing growth in building materials distribution in Ireland, Spain and the Netherlands and in retailing and manufacturing, helping to offset market weakness in the UK and Finland.”

Performance varied across the group’s regional markets. In Ireland, both Chadwicks and Woodie’s saw a softer period in September and October. In the UK, distribution revenue slipped 0.5% on a like-for-like basis, with activity deteriorating toward the end of the period.

Growth in the Netherlands slowed to 0.7%, while Finland continued to struggle, recording a 6.4% decline in like-for-like revenue. Spain remained the standout performer, delivering 5.7% like-for-like growth supported by a strong summer sales season for air-conditioning and ventilation products.

The group also completed its seventh share buyback programme on November 7, repurchasing 2.74 million ordinary shares at an average price of £9.14, returning £25 million to shareholders.

Aviva (LSE:AV.) delivered a confident third-quarter update, raising its financial ambitions after reporting broad-based momentum and early gains from its acquisition of Direct Line. The insurer said it now expects to meet its 2026 objectives in 2025—one year ahead of schedule.

Despite the upbeat message, the stock fell more than 4% in early London trading.

The company introduced upgraded medium-term goals, including average annual operating EPS growth of 11% between 2025 and 2028. It also aims to push its IFRS return on equity above 20% by 2028 and generate over £7 billion in cash remittances during the 2026–2028 period.

“Over the last five years we have transformed Aviva, delivering again and again for our customers and shareholders. We continue to make excellent progress and now expect to achieve our financial targets in 2025, one year early,” said Amanda Blanc, CEO of Aviva.

Aviva noted that the integration of Direct Line is moving ahead faster than anticipated. The group raised its cost-synergy target to £225 million—almost double the original figure—and expects more than £500 million in capital synergies after regulatory approval is secured.

Management also reiterated that share buybacks will resume next year, with a larger programme planned due to the increased share count.

Aviva expects operating profit of roughly £2.2 billion for 2025 and said solvency remains strong, ending Q3 with a shareholder cover ratio of 177%. Blanc added that the company’s outlook has “never been better,” pointing to accelerating growth, rising returns, and a plan for more than 75% of its business mix to be capital-light by 2028.

The general insurance division remained a standout performer, with premiums rising 12% to £10 billion in the first nine months. Growth included a 17% jump in the U.K. and Ireland and steady improvements in Canada.

The combined operating ratio improved to 94.4% on an undiscounted basis thanks to stronger pricing and reduced weather-related losses. In wealth, Aviva recorded £8.3 billion in net flows, taking assets to £224 billion, while retirement sales held firm despite difficult comparisons.

QinetiQ Group PLC (LSE:QQ.) delivered first-half results ahead of market forecasts on Thursday, with underlying operating profit reaching £96.0 million—topping expectations even as organic revenue declined 3%.

The company held firm on its full-year outlook, defying investor concerns that a guidance cut might be on the horizon.

For the six months to September 30, 2025, QinetiQ reported revenue of £900.4 million, down from £946.8 million a year earlier. Despite the revenue dip, the underlying operating margin came in at 10.7%, outperforming the 10% margin signaled in its first-quarter trading update.

Underlying earnings per share were unchanged at 14.2p, supported by the company’s accelerated share buyback programme.

Order intake remained strong, reaching £2.4 billion, including a major £1.5 billion Long Term Partnering Agreement (LTPA) extension to enhance the UK’s Test & Evaluation capabilities for future defence needs. The book-to-bill ratio stood at 0.9x, reflecting softer near-term demand in the UK market.

Group Chief Executive Steve Wadey said: “Operational performance in the half has been in line with our expectations. Despite tough market conditions, we delivered against our record order backlog and implemented our restructuring activities, including disposal of the US Federal IT business.”

The company reiterated its guidance for the year, forecasting about 3% organic revenue growth before FX and the US Federal IT disposal, an operating margin of around 11%, and cash conversion near 90%. Earnings per share growth is expected to be in the range of 15–20%.

The board announced an interim dividend of 3.0p per share—an increase of 7% from the prior year’s 2.8p—consistent with its progressive dividend policy.

With 89% of second-half FY26 revenue already covered and a robust £4.8 billion backlog (funded and unfunded), QinetiQ said it remains confident in its long-term growth prospects despite ongoing market challenges.

Persimmon PLC (LSE:PSN) reported a 15% rise in forward sales to £2.79 billion as of November 2, 2025, signalling resilience amid a difficult housing market. The homebuilder reiterated that it remains on course to meet full-year expectations, even as market conditions softened following the summer.

The company posted a 9% increase in its net private sales rate, reaching 0.76 per outlet per week versus 0.70 a year earlier. Excluding bulk deals, the figure edged up 3% to 0.63. Persimmon operated an average of 272 outlets during the period—4% more than last year—helping drive a 14% rise in total weekly sales to 208 units.

Pricing remained firm, with the private average selling price in the forward order book holding at around £295,150, up 1.5% year-on-year.

Group Chief Executive Dean Finch said: “Persimmon has performed well during 2025, in a challenging market, with increased sales rates, more sales outlets, and robust pricing. This demonstrates the benefit of the investment made in the business in recent years.” He added: “Our forward sales are up 15% and we remain on track to deliver our 2025 performance in line with market expectations.”

The builder noted that 83% of expected private completions for the year are already exchanged or delivered, a slight dip from 85% at the same point in 2024. The company also highlighted pressure on consumer confidence due to lingering uncertainties, including the upcoming Government budget.

Persimmon’s land holdings rose 3% to roughly 83,800 plots as of September 30, 2025. The group invested £127 million in land during the third quarter, bringing year-to-date land spending to £336 million. Planning activity also improved, with 7,753 plots gaining detailed or reserved matters approval in the year to September 30, up from 7,175 a year ago.

The company expects to close the financial year with a cash position between £0 and £200 million as it continues to fund future growth initiatives into 2026.

United Utilities (LSE:UU.) reported a sharp increase in first-half profitability on Thursday and reiterated its full-year guidance, supported by a notable reduction in finance costs.

The company posted operating profit of £562 million for the first half of FY26, a 67% year-on-year increase and around 6% ahead of its own consensus forecast. Revenue rose 21% to £1,309 million, matching analysts’ expectations.

Profit before tax surged to £361 million, up from £183 million in the same period of FY25, driven in part by finance expenses that were 30% lower than last year. Earnings per share reached 52.8p, topping consensus estimates by 3%. The interim dividend was set at 17.88p, an increase of 3.5%, consistent with the company’s CPIH-linked dividend policy.

Regulatory capital value gearing remained steady at 60%, unchanged from the full-year 2025 level.

United Utilities reiterated its outlook for FY26, guiding for revenue in the £2.5–2.6 billion range. The company expects lower operating costs but forecasts £50 million increases in both depreciation and amortisation and financial expenses.

For the first time, the group issued full-year earnings per share guidance of approximately 100p, in line with market expectations. Capital expenditure is now projected to be around £1.5 billion, a slight refinement from its previous expectation of spending “over £1.5 billion.”

The water company also continues to anticipate a net penalty under its Outcome Delivery Incentives (ODI) framework for the full year.

Rolls-Royce Holdings Plc (LSE:RR.) reaffirmed its full-year 2025 guidance on Thursday, citing strong trading through October and sustained demand across its Civil Aerospace and Power Systems divisions, as well as steady progress in Defence.

The aero-engine manufacturer said group performance remained aligned with its expectations, leaving it on course to deliver an underlying operating profit of £3.1–£3.2 billion and free cash flow of £3–£3.1 billion for the year.

“Strong performance across the Group, driven by our actions and strategic initiatives, was in line with our expectations,” chief executive Tufan Erginbilgic said. “This builds further confidence in our Full Year 2025 guidance … despite continued supply chain challenges.”

Civil Aerospace continued to be a major driver of growth, supported by notable large-engine orders from IndiGo, Malaysia Airlines, and Avolon in the second half of the year. Rolls-Royce reported rising interest in its Trent XWB-97 engine for the Airbus A350F, particularly among customers in Greater China and the broader Asia-Pacific region, including Air China Cargo and Korean Air.

Large-engine flying hours increased 8% year on year in the 10 months to Oct. 31, reaching 109% of 2019 levels. Airbus recognised the company’s operational performance with a supplier award in the “Ramp up and Operational Excellence” category — marking the first time an engine manufacturer has achieved this distinction.

Rolls-Royce also highlighted the impact of its upgraded Trent 1000 high-pressure turbine blade, certified in June, which has more than doubled time on wing and is now being incorporated into both new engines and those undergoing maintenance. Further durability upgrades for the Trent 1000 and Trent 7000 remain on track for certification by the end of 2025 and are expected to extend time on wing by around 30%.

In business aviation, the first Gulfstream G800 powered by the Pearl 700 engine entered service in August, with the engine performing “seamlessly in service.”

Defence operations also remained robust. The Global Combat Air Programme deepened its partnership in September to accelerate power and propulsion system development, and Rolls-Royce conducted tests of a new combustor built using additive layer manufacturing to enhance efficiency. The company also noted an October agreement between Türkiye and the United Kingdom to export 20 Eurofighter Typhoon jets, powered by its EJ200 engines.

Rolls-Royce said its work on Project Pele — a U.S. initiative to develop a transportable microreactor — is advancing as planned. It continues to expand its nuclear-energy collaborations in the U.S., where Defence may become one of the first application areas.

In Power Systems, both order intake and revenue strengthened, driven by robust demand from data centre operators and government customers. Development of the next-generation engine for the data-centre backup market is progressing, with multiple units undergoing parallel testing ahead of a planned 2028 entry into service. The company also introduced a new fast-start gas generator in October, scheduled for availability in 2026, aimed at customers awaiting grid connections.

During the period, Rolls-Royce successfully tested the first 100% methanol high-speed marine engine, describing it as an important step toward carbon-neutral propulsion.

Its Small Modular Reactor (SMR) business advanced to the final stage of Sweden’s technology selection process and continued progress in the U.K. after being chosen as the preferred technology supplier by Great British Energy-Nuclear in June. Commercial terms for the U.K. agreement are expected to be finalised later this year, and the SMR division has now entered the U.S. regulatory review process.

The company said its operational simplification efforts under the Group Business Services programme continue, supported by the launch of a new global capability and innovation centre in Bengaluru, India. Rolls-Royce also noted further balance sheet strengthening: it increased cash generation, repaid a $1 billion bond maturing in October, and completed £0.9 billion of its £1 billion share buyback programme by the end of the month.

ASOS PLC (LSE:ASC) saw its shares climb 3.9% on Thursday after the online fashion group revealed that it had successfully completed a refinancing package that delivers improved terms and boosts liquidity.

The company has arranged a new five-year funding structure that includes a £150 million term loan and an £87.5 million deferred drawdown term loan from a group of private lenders, both due to mature in November 2030. This deal replaces the retailer’s former asset-backed lending facility.

ASOS said the refinancing provides an additional £87.5 million of liquidity, increases financial flexibility, and will trim annual cash interest costs by roughly £5 million compared with the previous Bantry Bay arrangement.

The move comes as the business enters what it calls “the final phase of its multi-year turnaround”, following steady strategic progress in building “sustainably profitable and resilient foundations.”

“I am pleased to announce the further strengthening of our balance sheet and financial flexibility through this strategic refinancing,” said Aaron Izzard, Chief Financial Officer of ASOS. “In addition to providing better financial terms, this positions us better to execute the final phase of our turnaround strategy and growth plans with greater confidence and resilience.”

Under the new agreement, ASOS will effectively retire its existing £75 million revolving credit facility and £50 million accordion facilities, which were due to mature in 2027 and had not been drawn during the previous reporting period.

Founded in 2000, the retailer serves 18 million active customers across more than 200 markets, offering its own labels—such as ASOS DESIGN, ARRANGE, COLLUSION, Topshop and Topman—alongside products from third-party brands.