"Mainland European markets are trading firmly in the green, led by the French CAC which has enjoyed a welcome boost off the back of outperformance in the luxury sector. Improved earnings saw LVMH finally return to growth after a tough period, with the CAC's biggest company gaining 13% and helping to boost sentiment for fellow luxury names such as Kering (6%) and Hermès (7%)."
"In contrast, the FTSE 100 has lagged in early trade, weighed down by renewed fiscal concerns after the chancellor warned of significant tax rises and spending cuts that could go further than required to plug the public finance gap. While such measures may reduce the risk of repeated tax hikes later in her tenure, they also raise fears of fresh pressure on UK growth."
"Gold has pushed to yet another record high as the prolonged US government shutdown continues to dent confidence in the world's largest economy. Prediction market Kalshi now suggests the stalemate could drag on for 35 days, potentially matching the 2018-19 record already held by Trump. The longer the impasse runs, the stronger the narrative that the US is no longer the bastion of stability it once was, and in an increasingly polarised global environment, investors continue to gravitate toward assets without regional or political bias."
Mainland European markets traded higher led by the French CAC after strong luxury sector performance. LVMH returned to growth with a 13% gain, lifting peers like Kering and Hermès. ASML beat earnings and net bookings forecasts but warned of weaker China orders in 2026, signalling continued AI-driven demand in Q3. The FTSE 100 lagged due to renewed fiscal concerns after the chancellor signalled significant tax rises and spending cuts that could exceed what is needed to close the public finance gap. The IMF upgraded 2026 growth to 1.3%, yet inflation and looming fiscal tightening limit Bank of England support. Gold hit record highs as a prolonged US government shutdown dented confidence and pushed investors toward politically neutral stores of value.
Read at London Business News | Londonlovesbusiness.com
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