British stocks moved into positive territory in Monday afternoon trade, mirroring broader gains across European markets, although France’s CAC 40 lagged behind, declining following Prime Minister Sebastien Lecornu’s sudden resignation.
As of 1215 GMT, the blue-chip index FTSE 100 rose 0.2% and the British GBP/USD dropped 0.3% against the dollar to above 1.34.
DAX index in Germany gained 0.3%, the CAC 40 in France dropped 1.3%.
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.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. 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.
