FTSE 100 today: Index falls, UK construction dips; France PM quits

Published 06/10/2025, 08:28
Updated 06/10/2025, 16:48
© Reuters

Investing.com -- British stocks edged lower on Monday, mirroring the broader European markets, although France’s CAC 40 lagged behind, declining following Prime Minister Sebastien Lecornu’s sudden resignation.

The blue-chip index FTSE 100 fell 0.2% and the British GBP/USD dropped 0.1% against the dollar to around 1.3470. 

DAX index in Germany gained 0.1%, the CAC 40 in France dropped 1.4%. 

France faces fresh political turmoil as PM Lecornu resigns

Lecornu stepped down from his position just one day after announcing his new cabinet. The resignation came as both political allies and opponents threatened to overthrow his government within hours of the cabinet appointments.

The political turmoil adds to France’s ongoing governmental instability. Lecornu, a close associate of President Emmanuel Macron, had only been appointed to the prime minister role last month.

In response to the political developments, France’s CAC 40 index dropped sharply. The EUR/USD also weakened following the news, reflecting investor concerns about political stability in one of Europe’s largest economies.

U.K. construction activity falls at slower pace

UK construction activity remained in decline during September, though the pace of contraction eased to its slowest in three months, according to data released by S&P Global’s UK Construction Purchasing Managers’ Index (PMI).

The index rose to 46.2 in September from 45.5 in August, reaching its highest reading since June. However, it stayed below the 50.0 mark that separates growth from contraction for a ninth consecutive month, signaling that the sector continues to face challenging conditions.

Citi downgrades U.K. stocks to Underweight

Citigroup has sharply reduced its rating on U.K. equities to “underweight” from “overweight,” citing a less supportive outlook for the FTSE 100 as market conditions begin to broaden.

In a note published Friday and reported by Reuters, the bank projected the FTSE 100 to reach 9,300 by the end of 2025 and 9,700 by mid-2026, suggesting only limited upside from current levels.

Aston Martin cuts 2025 volume outlook on weaker demand

Aston Martin Lagonda Global Holdings PLC (BS:AMLl) has reduced its 2025 volume forecast, now expecting a mid-to-high single-digit percentage decline compared to 2024 levels due to weakening demand in North America and Asia-Pacific regions along with ongoing tariff pressures.

The British luxury automaker delivered approximately 1,430 wholesale units in the third quarter of 2025, falling short of both the 1,641 units delivered in the same period last year and its previous guidance that volumes would remain broadly similar.

Mondi issues profit warning as weak demand hits 3Q results

In other corporate news, Mondi PLC (LON:MNDI) issued a profit warning after reporting weaker-than-expected third quarter results.

The paper and packaging company posted quarterly EBITDA of €223 million, down from €274 million in the second quarter. Excluding a €20 million forest fair value gain, EBITDA was €203 million, 15% below analyst expectations.

Mondi attributed the disappointing performance to weak demand, which led to extended maintenance shutdowns in softer markets. While packaging segments remained relatively stable compared to the second quarter, the uncoated fine paper business showed significant weakness, with challenging market conditions expected to persist through year-end.

Ferrexpo lifts Q3 output

Meanwhile, Ferrexpo PLC (LON:FXPO) reported third-quarter production of 1.51 million tonnes, representing a 3.3% increase from the second quarter but 29% lower than first-quarter levels.

The iron ore producer has scaled back operations to just one pellet line due to ongoing suspension of VAT refunds by Ukrainian tax authorities, with withheld funds now totaling $47 million.

AstraZeneca drug delivers survival benefit in breast cancer trial

In pharmaceutical news, AstraZeneca PLC (ST:AZN) and Daiichi Sankyo’s Datroway has shown a statistically significant improvement in overall survival for patients with metastatic triple-negative breast cancer who cannot receive immunotherapy.

The TROPION-Breast02 Phase III trial demonstrated the drug improved both overall survival and progression-free survival compared to chemotherapy as a first-line treatment, marking the first time any therapy has shown a survival benefit in this specific patient population.

Shawbrook Group plans London IPO

Shawbrook Group, a UK digital banking platform, announced Monday its intention to proceed with an initial public offering on the London Stock Exchange’s Main Market.

The high-growth lender, which has expanded its loan book from £1.4 billion in 2013 to £17.0 billion as of June 2025, plans to issue new shares alongside existing shares sold by current owner Marlin Bidco Limited.

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