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European stocks showed mixed performance on Wednesday as investors weighed the potential effects of the U.S. government shutdown ahead of important eurozone inflation data.

By 07:40 GMT, Germany’s DAX index had fallen 0.4%, France’s CAC 40 slipped 0.2%, while the U.K.’s FTSE 100 gained 0.4%.

U.S. Government Shutdown Moves Forward

The U.S. federal government largely shut down Wednesday after a last-minute spending bill supported by Republicans failed to pass the Senate, facing continued opposition from Democrats. This marks the 15th U.S. shutdown since 1981. While most previous shutdowns were resolved relatively quickly, the longest occurred during President Donald Trump’s first term. Political divisions are arguably deeper now.

Trump has threatened additional federal layoffs, with over 150,000 employees expected to leave payrolls this week following buyouts, marking the largest federal workforce exit in 80 years. The shutdown could weigh on growth in the world’s largest economy, a key driver of global growth.

Eurozone Inflation in Focus

In Europe, attention is turning to September’s eurozone inflation data, expected to show annual inflation rising to 2.2% from 2.0%. Upside risks are noted after German inflation accelerated more than expected in September, ending the recent disinflationary trend. As Europe’s largest economy, Germany’s inflation data will heavily influence the overall eurozone figure.

The European Central Bank kept interest rates unchanged last month, and stronger inflation could suggest policymakers see the easing cycle as concluded, at least temporarily.

Corporate News

Novartis (NYSE:NVO) shares rose after the U.S. FDA approved its oral treatment for patients with a chronic inflammatory skin condition. BMW (TG: BMW) slipped slightly following a U.S. recall of over 145,000 vehicles due to potential starter motor overheating. Greggs (LSE: GRG) shares climbed after reporting solid third-quarter sales and maintaining its full-year guidance.

Oil and Gold Update

Oil prices stabilized after two days of losses as investors considered OPEC+ plans for a larger November output hike and the impact of the U.S. shutdown on demand. Brent futures rose 0.6% to $66.43/barrel, while WTI climbed 0.6% to $62.76/barrel. Earlier in the week, both benchmarks fell sharply, with Brent and WTI dropping more than 3% on Monday and another 1.5% on Tuesday. OPEC+ could boost output by up to 500,000 barrels per day next month, triple the October increase, Reuters reported.

Spot gold reached a record $2,875.53/oz earlier in the session, while December gold futures peaked at $3,903.45/oz, as the U.S. shutdown drove demand for safe-haven assets.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Greggs plc (LSE:GRG) posted a 6.1% rise in total sales for Q3 2025, with year-to-date sales up 6.7%. After a slow July due to high temperatures, trading improved in August and September. The company opened 130 new shops while closing 73, resulting in 57 net new openings, and expects around 120 net openings for the full year. Greggs is also expanding its ‘Bake at Home’ range, introducing high-protein and seasonal menu items, and progressing supply chain investments with new distribution centers in Derby and Kettering planned for 2026 and 2027. Cost inflation expectations for 2025 have slightly eased, and the board maintains its full-year guidance.

Greggs’ strong financial performance, consistent revenue growth, and solid profitability underpin a positive outlook. Valuation remains attractive, with a low P/E ratio and healthy dividend yield, though technical indicators suggest a neutral to slightly bearish short-term trend.

About Greggs plc

Greggs plc is a leading UK food retailer, offering bakery products, sandwiches, salads, and beverages. The company focuses on convenience and affordability through a network of company-managed and franchised shops nationwide.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Defence Holdings PLC (LSE:ALRT) has unveiled its second classified AI product, designed for edge-based analysis and identification support in line with NATO’s urgent operational priorities. The solution aims to improve target identification, reduce misclassification, and aid decision-making in contested environments, enhancing the capabilities of existing hardware. The initiative also aligns with the UK Strategic Defence Review 2025 objectives, showcasing Defence Holdings’ ability to rapidly translate strategy into commercially viable defence technology.

About Defence Holdings PLC

Defence Holdings PLC is the UK’s first listed software-led defence company, specializing in AI-enabled solutions for military applications. The company focuses on addressing critical operational gaps for UK and allied forces by providing software-driven products that augment existing hardware capabilities.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

James Halstead PLC (LSE:JHD) posted a modest decline in revenue and profit for the year ending 30 June 2025, reflecting challenges in Europe and the APAC regions. The company achieved growth in North America and Malaysia, improved gross margins, and continued investing in operations and product development. Highlighting confidence in its future, James Halstead announced a record dividend increase for the 49th consecutive year. Key projects included installations at major international sites, with ongoing commitment to sustainability and social responsibility initiatives.

The company’s outlook is supported by strong financial stability and profitability, underpinned by a robust balance sheet. However, technical indicators suggest weak short-term momentum, and while valuation appears reasonable, the dividend yield anomaly warrants attention. Limited recent earnings call or corporate event data restricts further insights.

About James Halstead

James Halstead PLC, based in Bury, UK, is a longstanding manufacturer and global distributor of commercial and domestic flooring. Listed on the London Stock Exchange, the company emphasizes brand development through quality, innovation, and sustainability, supplying flooring to over 60 countries worldwide.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Arrow Exploration Corp. (LSE:AXL) announced that its Mateguafa Oeste-1 exploration well in the Tapir Block, Llanos Basin, Colombia, was drilled but found uneconomic due to limited oil pay above water, leading to its abandonment. The company will now redeploy its drilling rig to the Mateguafa Attic field to target the Mateguafa-5 well, focusing on both the Ubaque and C7 zones, with plans to explore further prospects if successful. This shift demonstrates Arrow’s strategic commitment to leveraging its geological expertise and expanding its operations, potentially enhancing its market positioning and creating new opportunities for stakeholders.

About Arrow Exploration Corp.

Arrow Exploration Corp. is a publicly traded company holding a portfolio of high-potential Colombian oil assets. Through its subsidiary, Arrow Exploration Switzerland GmbH, the company operates in active basins including Llanos, Middle Magdalena Valley, and Putumayo. With significant working interests, Brent-linked light oil pricing, and low royalties, Arrow aims to achieve attractive operating margins. The company is listed on AIM (London Stock Exchange) and the TSX Venture Exchange under the symbol ‘AXL’.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Shield Therapeutics (LSE:STX) has announced encouraging results from its Phase 3 pediatric trial of ferric maltol, presented at the American Association of Pediatrics Conference. The study showed significant hemoglobin improvements and a strong safety profile, marking a key step toward expanding ACCRUFeR®’s use in young children. This milestone strengthens Shield’s market potential by addressing a critical need for safe, effective oral iron therapies in pediatric patients.

The company’s outlook is supported by positive technical performance and market momentum. However, financial challenges—including negative profitability and cash flow issues—remain significant, while valuation concerns from a negative P/E ratio and the absence of a dividend weigh on investor appeal.

About Shield Therapeutics

Shield Therapeutics plc is a commercial-stage specialty pharmaceutical company focused on iron deficiency treatment through ACCRUFeR®/FeRACCRU® (ferric maltol). The company holds exclusive U.S. collaboration agreements and licensing rights in key international markets, including Europe, China, and Japan, establishing a strong global presence.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Tate & Lyle PLC (LSE:TATE) issued a pre-close update ahead of its six-month results, highlighting strong customer engagement and early cross-selling gains following its merger with CP Kelco. While softer market demand has affected near-term financial performance, the company is focused on driving revenue growth through improved customer segmentation and innovation. The CP Kelco integration is expected to generate both revenue and cost synergies, positioning Tate & Lyle for stronger future performance despite ongoing economic volatility.

The company’s outlook is supported by robust EBITDA performance and strategic growth initiatives. Financial stability and an attractive dividend yield provide further support, though technical indicators and valuation metrics suggest caution.

About Tate & Lyle

Tate & Lyle PLC is a global leader in ingredient innovation, delivering solutions that enhance the taste and nutritional profile of food and beverages. The company specializes in sweetening, texture, and fortification, developing products that reduce sugar, calories, and fat while adding fiber and protein. Serving over 120 countries, Tate & Lyle operates across beverages, dairy, bakery, and snacks. Its recent acquisition of CP Kelco strengthens its solutions portfolio and market presence.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

UK Oil & Gas Plc (LSE:UKOG) has reported its full-year results for 2024, highlighting a strategic pivot toward clean power and hydrogen storage. The company will concentrate on hydrogen storage and generation projects in South Dorset and East Yorkshire, supporting the UK’s clean energy infrastructure and helping reduce reliance on natural gas. This transition positions UKOG to capitalize on the growing hydrogen economy while contributing to decarbonization efforts in major CO₂-emitting regions across the UK.

About UK Oil & Gas Plc

UK Oil & Gas Plc is an energy developer transitioning from traditional petroleum operations in the UK and Turkey toward clean power solutions. Leveraging its expertise in subsurface engineering and facilities management, the company is developing large-scale salt cavern hydrogen storage projects to aid the UK’s net-zero ambitions by 2050.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Renew Holdings plc (LSE:RNWH) announced that its full-year results for the year ending September 30, 2025, met market expectations, delivering record revenues and operating profit. The company closed the year with a robust balance sheet and a modest net cash position, exceeding expectations and providing flexibility for potential acquisitions. Renew has broadened its market and service offerings, maintaining a strong order book and positioning itself to capitalize on long-term growth opportunities.

The company’s outlook is underpinned by strong financial performance and reasonable valuation, although technical indicators show limited momentum, slightly tempering sentiment.

About Renew Holdings

Renew Holdings plc is a leading UK engineering services provider, supporting critical national infrastructure. The company operates through independently branded subsidiaries across Rail, Infrastructure, Energy (including Wind and Nuclear), and Environmental sectors. These regulated markets benefit from long-term funding visibility and largely non-discretionary spending.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

SDCL Efficiency Income Trust plc (LSE:SEIT) reported a stable operational performance for the six months ending September 2025, despite limited growth capital. The company completed the disposal of ON Energy at a premium, with proceeds earmarked for debt reduction and shareholder returns. While key projects delivered mixed results—strong in some areas but affected by site-specific challenges such as Onyx—SEIT continues to pursue strategic disposals to streamline its portfolio and enhance liquidity.

The stock presents a mixed outlook. Positive factors include strong equity financing, healthy cash flows, and stable operations under disciplined management. However, technical indicators and valuation metrics suggest caution, with no clear bullish momentum and a negative P/E ratio. The company’s high dividend yield may remain attractive to income-focused investors.

About SDCL Efficiency Income Trust

SDCL Efficiency Income Trust plc is a FTSE 250 company investing solely in the energy efficiency sector. Its portfolio spans North America, the UK, and Europe, including cogeneration assets in Spain, solar and storage projects in the U.S., and a regulated gas distribution network in Sweden. SEIT aims to create shareholder value through a diversified portfolio of energy efficiency assets, delivering cleaner, more reliable, and cost-effective energy solutions.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.