Europe open: Shares mixed on UK borrowing data, BoJ decision
By Frank Prenesti
Date: Friday 19 Sep 2025
(Sharecast News) - European shares were mixed at the open as investors assessed rate moves in Japan along with UK borrowing and retail sales data.
The pan-regional Stoxx 600 index was down 0.04% to 554.80 at 0824 BST. The UK's FTSE 100 was flat. While Germany's DAX gained 0.08% and France's CAC 40 rose 0.47%.
The Bank of Japan kept interest rates on hold Friday but said it would start offloading funds bought as part of its earlier monetary easing campaign. A separate data release showed inflation slowed to 2.7% in August from 3.1% the previous month.
In the UK, government borrowing rose by more than expected in August, piling more pressure on Finance Minister Rachel Reeves ahead of the autumn budget in November.
Public sector net borrowing rose to £18bn in August figures from the Office for National Statistics (ONS), published on Friday showed. This was £3.5bn more than in August 2024 and also higher than the £12.5bn forecast by the Office for Budget Responsibility (OBR) in March and consensus expectations of £12.8bn.
The news saw the pound dropped by half a cent to $1.35 for a third straight day of falls. Government bonds were also under pressure with the 10-year yield up 4 basis points to 4.7%.
Meanwhile, retail sales moved higher in August, according to official data published on Friday, boosted by the warm summer weather.
According to the Office for National Statistics, retail sales volumes rose 0.5% last month, following a downwardly-revised 0.5% increase in July. Analysts had been expecting a more modest 0.3% rise in August.
Reporting by Frank Prenesti for Sharecast.com
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