Category: Market News

European equity markets traded slightly higher on Wednesday, with investors assessing fresh activity data and looking ahead to remarks from European Central Bank President Christine Lagarde later in the day.

At 08:05 GMT, Germany’s DAX was up 0.4% and France’s CAC 40 gained 0.1%, while the UK’s FTSE 100 slipped 0.1%.

Positive Lead from Asia

European shares received a generally upbeat handover from Asia, where expectations for a U.S. Federal Reserve rate cut next week continued to build. U.S. tech stocks helped lift Wall Street to a modestly higher close overnight.

With December historically a supportive month for equities, sentiment remains constructive. Markets now price an 85% chance of a 25-basis-point Fed cut next week.

Lagarde to Speak Later Today

ECB President Christine Lagarde is scheduled to deliver a speech later in the session, and investors will analyze her comments for indications on the Bank’s interest-rate path.

Eurozone inflation ticked up slightly to 2.2% in November from 2.1% in October—still close to the ECB’s 2% target.

“We have practically achieved (our goal), and the inflation rate will continue to fluctuate around this value in the near future,” ECB policymaker Joachim Nagel, who also heads the Bundesbank, told Stern magazine on Tuesday.

Later today, the Eurozone composite PMI for November will be released, with expectations pointing to a gradual improvement in economic conditions.

Corporate Updates

Inditex reported a 10.6% increase in revenue for the four weeks to 1 December, underlining its resilience as consumer sentiment softens across the apparel industry.

Hugo Boss (TG:BOSS) announced plans to target an operating profit margin of roughly 12% over the medium to long term as part of a strategic overhaul.

Airbus (EU:AIR) cut its 2025 commercial aircraft delivery forecast to around 790 units, citing fuselage-panel quality issues affecting the A320 programme.

Oil Prices Edge Up

Crude prices ticked higher on Wednesday amid diminishing hopes for a near-term resolution to the war in Ukraine, keeping supply risks elevated.

Brent rose 0.5% to $62.74 a barrel, while U.S. West Texas Intermediate also gained 0.5% to $58.94.

Talks late Tuesday between Russia’s President Vladimir Putin and U.S. envoys Steve Witkoff and Jared Kushner ended without a peace agreement, leaving existing sanctions intact. A breakthrough could ease constraints on Russian oil supply.

Oil markets are watching for developments closely. Meanwhile, rising U.S. crude inventories added to oversupply concerns after API data showed a 2.48 million-barrel build for the week ending 28 November. Official figures from the U.S. Energy Information Administration are due later today.

UK equities opened weaker on Wednesday, with the FTSE 100 turning negative even as the pound regained ground against the dollar, moving back toward the $1.32 level. European markets showed a mixed tone.

By 08:23 GMT, the FTSE 100 was down 0.1%, while GBP/USD ticked up 0.2% to 1.32. Germany’s DAX rose 0.3%, and France’s CAC 40 dipped 0.09%.

UK Corporate Highlights

Paragon Banking Group PLC (LSE:PAG)
Paragon delivered a 4% beat on pre-provision profit but cautioned investors that tighter margins lie ahead. Statutory profit before tax for the year to 30 September rose 1.1% to £256.5 million. Operating profit before adjusting items nudged up 0.4% to £293.9 million, while pre-provision profit grew a stronger 5.9% to £335.8 million. For 2026, the group expects a net interest margin of 290–300 basis points, indicating possible earnings pressure.

Spire Healthcare Group plc (LSE:SPI)
Spire said it now anticipates FY25 adjusted EBITDA to land near the bottom of its £270–£285 million range, despite solid recent trading. Revenue grew 3.6% in the July–October period, following 4.9% growth in the first half.

Weir Group PLC (LSE:WEIR)
Weir reaffirmed its outlook from July, maintaining expectations for growth in both constant-currency revenue and operating profit. The group continues to target around 20% operating margins and free operating cash conversion in the 90–100% range.

Bloomsbury Publishing PLC (LSE:BMY)
Bloomsbury unveiled a strategic partnership with Google Cloud to bolster innovation across AI-driven learning tools and core publishing systems. The collaboration will leverage technologies such as NotebookLM, Vertex AI, Gemini Enterprise, and LearnLM—Google’s optimized model for learning and knowledge synthesis.

Smiths Group PLC (LSE:SMIN)
Smiths Group will divest its Smiths Detection division to CVC Capital Partners–advised funds for an enterprise value of £2.0 billion, equivalent to 16.3× headline operating profit. Combined with the recent sale of Smiths Interconnect, the group expects total net proceeds of roughly £1.85 billion. Completion is targeted for the second half of 2026, pending regulatory approvals and consultation with France’s works council.

HSBC Holdings PLC (LSE:HSBA)
HSBC has announced the appointment of Brendan Nelson as Group Chair. Nelson, who stepped in as interim chair on 1 October, joined the board in September 2023. His appointment follows an extensive internal and external search process.

Thames Water
Thames Water warned of a “material uncertainty which may cast significant doubt” on its ability to continue operating as a going concern. Serving 16 million customers in southeast England, the company signaled that a move into special administration—a temporary form of government control—could occur “in the very near term” if terms for a lender-led takeover are not finalized.

NextEnergy Solar Fund Limited (LSE:NESF) reported a 3.2% decline in net asset value for the first half of its financial year, attributing the decrease mainly to reduced long-term power price assumptions.

As of 30 September, the fund’s NAV stood at 88.8p per share, down 2.9p from the previous period. The shift in power price expectations—driven by falling gas prices—cut NAV by 2.2p per share, while the quarterly dividend shaved off an additional 2.5p. These headwinds were partially offset by savings from a lower asset-management fee, which added 1.3p per share.

Despite the NAV downturn, operational performance was strong: portfolio generation came in 7.6% above budget, supported by solar irradiation levels around 13% higher than forecast.

Gearing edged up to 49.2% of gross asset value from 48.4% in March 2025, largely reflecting softer asset valuations. The company’s £205 million revolving credit facility now has roughly £151.9 million drawn, compared with £144.9 million at the March reporting date.

With gearing nearing the fund’s 50% GAV limit—and the preference share debt-to-enterprise-value ratio already above its threshold at 54.8%—NextEnergy has limited room for additional borrowing or for resuming share buybacks. Its buyback programme remains on hold after completing about 58% (£11.5 million) of planned purchases.

NextEnergy is undertaking a strategic review that may broaden its disposal plans beyond the current 100MW target to include additional subsidy-backed assets with stronger market appeal. Further details are expected in 2026.

The company reaffirmed its dividend guidance for FY26, projecting coverage of 1.1–1.3 times. With over 70% of annual generation already achieved in the first half and running ahead of budget, management highlighted strong cash-flow visibility.

Looking forward, the fund’s revenue profile remains well protected against softer power prices, with approximately 73% of FY27 revenue already contracted and about 64% contracted for FY28.

Smiths Group (LSE:SMIN) has reached a deal to divest its security screening and threat-detection division, Smiths Detection, to funds managed by CVC Capital Partners for £2.0 billion ($2.64 billion), inclusive of cash and debt.

The engineering group said on Wednesday that it expects the sale to close in the second half of 2026. Smiths Group intends to return a substantial share of the net proceeds to shareholders, with further information on the method and timing to be provided at a later stage.

The latest divestment comes on the heels of October’s announced sale of Smiths Interconnect. Combined, the two transactions carry a total enterprise value of £3.3 billion, according to the London-based company.

Senior plc (LSE:SNR) has secured a new multi-year agreement with Airbus (EU:AIR) for the supply of aerospace standard parts, the company confirmed on Wednesday.

The contract spans the design, qualification, and production of standard components used in fluid-conveyance systems. These parts will be fitted across Airbus’s single-aisle and dual-aisle commercial aircraft programmes, with additional long-term potential in the aftermarket for spares and repairs.

Initial deliveries are expected to start in the first quarter of 2026 from Senior’s European operations. The added product lines will further strengthen the group’s portfolio of pressed, formed, and high-precision engineered components.

The deal marks a significant milestone for Senior, aligning with management’s focus on its “standard parts” strategy, which has been a priority for several years. The agreement follows extensive groundwork, and analysts suggest there is still meaningful room for growth with Airbus in this segment.

Production is set to ramp up fully in 2027. Senior’s shares trade at 182.60p, and some analysts continue to rate the stock a buy with a 230.00p price target, implying roughly 26% potential upside.

The eurozone’s private-sector economy strengthened again in November, delivering its fastest pace of growth since mid-2023, according to the latest HCOB PMI figures published on Wednesday.

The HCOB Eurozone Composite PMI Output Index rose to 52.8 in November from 52.5 the month before, extending its upward streak to six consecutive months and reaching its highest reading since May 2023. The index also moved above its long-term average of 52.4.

Both major sectors contributed to the improvement, though services remained the clear outperformer. The Services PMI Business Activity Index increased to 53.6 from 53.0 in October, marking a 30-month high. Manufacturing, by contrast, saw its output growth cool to its slowest pace in nine months.

All five countries with composite data posted expansion. Ireland delivered its strongest performance in three and a half years, while Spain delivered the second-fastest growth in the group despite easing from October’s 2025 peak. Italy registered its best output expansion since April 2023, and France returned to growth for the first time in 15 months. Germany, meanwhile, continued to grow but at a more moderate rate compared with October’s 29-month high.

New business increased for the fourth month running, matching October’s two-and-a-half-year peak. This rise came entirely from services, as manufacturers saw a slight drop in new orders.

Employment edged higher for the eighth time in nine months, though the pace of job creation was minimal. Service-sector firms continued to hire, while factory employment recorded its steepest decline since April.

Business sentiment improved across both areas of the economy, though optimism remained below longer-term norms. Input cost pressures intensified, reaching an eight-month high, driven by rising service-sector expenses and a renewed uptick in manufacturers’ purchase prices. Conversely, output-price inflation eased to its lowest level in six months.

Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, commented: “The service sector in the eurozone is showing clear signs of recovery. The strong performance in the service sector was even enough to more than offset the weakness in the manufacturing sector, meaning that economic output in the eurozone grew slightly faster in November than in the previous month.”

He added that the recovery has gained breadth, with the services sector expanding for six consecutive months across much of the region. Looking ahead, he expects Germany’s expansionary fiscal stance and Spain’s ongoing strong growth to provide tailwinds for the eurozone economy over the next year.

SDI Group plc (LSE:SDI) has delivered strong interim results for the first half of FY26, supported by notable contract wins and the successful integration of a recent acquisition that contributed positively to earnings. Revenue rose 10.1%, reflecting a combination of organic expansion and acquisitive growth, while gross margins also improved. The company highlighted continued progress on innovation across its portfolio businesses, which has led to new product launches and wider market penetration. Strengthening of the management team further underpins SDI’s plans for sustainable long-term growth. Despite a challenging macro backdrop, the acquisition pipeline remains active, and the group remains confident in its strategic direction.

SDI’s outlook is supported by solid financial performance and constructive commentary from its latest earnings call. Strategic acquisitions and operational efficiencies continue to be key drivers, even as pockets of weaker organic demand and broader market uncertainty present headwinds. Technical indicators suggest bearish momentum, adding an element of caution to the near-term view.

More about SDI Group

SDI Group plc is a diversified group of small and medium-sized companies specialising in the design and manufacture of niche industrial and scientific products. Its portfolio spans laboratory equipment, scientific and industrial sensors, precision optics, and instrumentation serving sectors such as life sciences, healthcare, plastics and packaging, and advanced manufacturing.

Spire Healthcare (LSE:SPI) has reported a 3.6% rise in revenue for the July–October 2025 period, achieving growth despite persistent inflationary pressures and the impact of the higher National Minimum Wage. The company’s transformation programme remains on track, targeting £30 million in savings, while the rollout of new Patient Support Centres is helping to improve private patient activity. Nonetheless, reduced NHS commissioning—linked to tighter budgets—continues to weigh on performance. Spire expects FY25 EBITDA to land at the lower end of its guidance range but anticipates further recovery in self-pay and PMI demand through FY26. The group has also extended its banking facilities and is assessing strategic options to unlock shareholder value, which may include divestments or a sharper focus on private payors.

Spire’s outlook benefits from ongoing revenue growth and meaningful operational improvements, although elevated leverage and modest net profitability remain key constraints. Technical indicators point to bearish momentum, and current valuation metrics suggest the shares may be priced ahead of fundamentals.

More about Spire Healthcare

Spire Healthcare is one of the UK’s largest independent healthcare providers, operating 38 hospitals and more than 50 clinics, medical centres, and consulting rooms across England, Wales, and Scotland. Its services include private GP networks, occupational health solutions for over 800 corporate clients, and leading private provision of knee and hip procedures. Spire also offers mental health, musculoskeletal, and dermatology care through its Vita Health Group brand. The company is listed on the London Stock Exchange and is a constituent of the FTSE 250.

MONY Group plc (LSE:MONY) has reported further growth in revenue and adjusted EBITDA for the July–November 2025 period, navigating pressures from insurance markets and rising PPC costs. Strong momentum in the Money and Energy divisions underpinned performance, including the successful rollout of a collective switch product in the energy sector. The Group also outlined strategic progress, notably its move to a minority shareholding in Ice Travel Group—aimed at reducing operational complexity while retaining strategic influence. MONY’s two-sided marketplace model and member-led propositions continue to drive engagement, with the SuperSaveClub surpassing two million members. Management remains confident in the company’s ability to deliver sustainable growth, citing a diversified business mix and ongoing investment in technology.

The broader investment outlook is supported by a solid financial foundation, marked by strong cash generation and prudent debt management. An appealing valuation—characterised by a low P/E ratio and high dividend yield—further enhances the profile for value and income-focused investors. However, bearish technical indicators point to potential short-term volatility. The lack of recent earnings call commentary or corporate events does not materially affect the assessment.

More about MONY Group plc

MONY Group plc is a diversified financial services platform offering products across insurance, money management, home services, travel, and cashback. The Group leverages its portfolio of trusted consumer brands, extensive data capabilities, and scalable tech platforms to deliver customer value and generate consistent shareholder returns.

ZIGUP plc (LSE:ZIG) has reported a solid first-half performance, with revenue and profit growth fuelled largely by its rental operations in Spain and the UK & Ireland. The company is in the midst of a major strategic simplification designed to streamline its business model and deliver substantial cost savings by FY2028. Management noted that the combination of strong operational momentum and ongoing transformation initiatives positions ZIGUP to take advantage of growth opportunities across the mobility services sector, with full-year profits expected to meet or exceed the upper end of analyst forecasts.

The wider outlook for ZIGUP reflects a mix of positives and pressures. Technical indicators point firmly toward bullish momentum, yet concerns around declining revenue trends and strained cash flow metrics weigh on the overall assessment. Even so, the valuation remains appealing, supported by a low P/E ratio and a generous dividend yield.

More about ZIGUP plc

ZIGUP plc is an integrated mobility solutions provider offering a full-spectrum platform that spans the entire vehicle lifecycle. Its services support businesses, fleet operators, insurers, and OEMs through vehicle rental, fleet management, accident and repair services, maintenance, and more. The company is focused on helping customers navigate the evolving mobility landscape, with particular emphasis on digital connectivity and the transition toward lower-carbon transportation, including electric vehicles and charging infrastructure.