British stocks fell slightly on Monday, moving in line with broader European markets. The FTSE 100 dropped 0.2%, while the British pound slipped 0.1% against the dollar to around 1.3470. Across the continent, Germany’s DAX edged up 0.1%, but France’s CAC 40 sank 1.4% after fresh political unrest.
France was hit by a new wave of instability after Prime Minister Sebastien Lecornu suddenly resigned just a day after unveiling his new cabinet. His departure came as both allies and opponents threatened to topple his government, deepening the country’s ongoing political crisis. Lecornu, a close ally of President Emmanuel Macron, had only been in the role for a month. The CAC 40 reacted sharply to the turmoil, and the euro also weakened as investors worried about France’s political future.
In the UK, construction activity continued to decline in September, but at a slower pace. S&P Global’s Construction PMI rose to 46.2 from 45.5 in August, marking the highest reading since June. Even so, it remained below 50 for the ninth straight month, showing that the sector is still under pressure.
Citigroup delivered another blow to market sentiment, cutting its outlook on UK equities from “overweight” to “underweight.” The bank said the FTSE 100’s growth prospects are now more limited, forecasting the index to reach 9,300 by the end of 2025 and 9,700 by mid-2026, only a modest gain from current levels.
Among individual stocks, Aston Martin Lagonda lowered its 2025 sales forecast, expecting volumes to fall by a mid-to-high single-digit percentage compared to 2024. The company blamed weak demand in North America and Asia-Pacific and continued U.S. tariff pressures. Aston Martin delivered about 1,430 wholesale units in the third quarter, down from 1,641 a year earlier and missing its previous target.
Mondi also issued a profit warning after disappointing third-quarter results. The packaging and paper maker reported EBITDA of €223 million, down from €274 million in the prior quarter. Excluding a one-off forest gain, earnings came in 15% below analyst expectations. The company cited weak demand and extended maintenance shutdowns, particularly in its paper division, and warned that tough conditions are likely to last through year-end.
Ferrexpo reported a small improvement in output, producing 1.51 million tonnes of iron ore in the third quarter — up 3.3% from the second quarter but still 29% below the first. Operations remain limited to one pellet line due to Ukraine’s suspension of VAT refunds, with about $47 million now withheld.
On a brighter note, AstraZeneca announced promising results from its breast cancer drug Datroway, developed with Daiichi Sankyo. The treatment showed a clear survival benefit for patients with advanced triple-negative breast cancer who cannot receive immunotherapy — the first therapy to show such results in this group.
In other news, Shawbrook Group, a fast-growing UK digital bank, said it plans to go public on the London Stock Exchange. The company’s loan book has grown from £1.4 billion in 2013 to £17 billion as of mid-2025. The IPO will include new shares as well as some existing shares sold by its parent company, Marlin Bidco Limited.
Overall, British markets started the week on a cautious note, weighed down by weak earnings updates, political tension in France, and a softening economic outlook.
