Europe close: Stocks manage small gains on mixed day
By Josh White
Date: Monday 24 Nov 2025
(Sharecast News) - European shares posted modest gains on Monday as investors assessed BHP's decision to abandon its pursuit of Anglo American, fresh diplomatic efforts to end the war in Ukraine and disappointing German business sentiment data.
The Stoxx 600 rose 0.14% to 562.88, while Germany's DAX advanced 0.64% to 23,239.18.
France's CAC 40 slipped 0.29% late in the day to 7,959.67 and London's FTSE 100 lost 0.05% to 9,534.91.
Russ Mould at AJ Bell said the start of the week marked "a remarkably different picture than last week's troubling scenes that dogged financial markets," adding that "it suggests investors have had time to collect their thoughts over the weekend, and to start the new week in a calmer mood."
BHP confirmed it was no longer considering a takeover of Anglo American, easing pressure on the target's planned $57bn merger with Teck Resources.
The miner said a tie-up that would have created the world's largest copper producer still had "strong strategic merits", but insisted it was confident in the "highly compelling potential" of its own organic growth plans.
Mould said "news that BHP has walked away from a second attempt to buy Anglo American has left investors hungry for action elsewhere," noting that miners were "in vogue amid ongoing merger and acquisition activity in the sector."
Investor focus also shifted toward the approaching US Thanksgiving holiday and whether the Federal Reserve will cut interest rates next month.
Patrick Munnelly at TickMill said traders had grown "more optimistic about the possibility of the Federal Reserve lowering interest rates next month," adding that the week's early moves followed a volatile period in global markets.
German business climate deteriorates, UK braces for Budget
Economic data from Germany added to caution.
The Ifo business climate index slipped to 88.1 in November from 88.4, undershooting expectations.
While the current conditions gauge ticked up slightly, expectations declined and the manufacturing index weakened further.
Ifo president Clemens Fuest said companies "have little faith that a recovery is coming anytime soon".
ING added that the November readings suggest the German economy "remains deeply stuck in stagnation at year-end".
In the UK, speculation ahead of Wednesday's Autumn Budget indicated the Office for Budget Responsibility was preparing to cut its GDP forecasts for the remainder of the current parliament.
Munnelly said the November flash PMIs highlighted "headcount reductions and margin compression in the service sector," with subdued demand and competitive pressure weakening pricing power.
Defence stocks, Novo Nordisk out of favour
In equities, defence stocks declined as negotiations continued in Geneva aimed at ending Russia's war in Ukraine, with a revised proposal from Washington prompting sharp falls in Renk, Hensoldt, Rheinmetall, Babcock, Saab and Leonardo.
Mould said Ukraine-related developments "have dominated the news agenda, giving hope to investors and individuals around the world."
Munnelly added that US-Ukraine talks in Geneva were described as "steps toward reaching an agreement", with the timeline for securing Kyiv's support potentially stretching into next week.
Novo Nordisk also dropped after its semaglutide treatment failed to meet the main goal in a large Alzheimer's trial.
On the upside, Bayer gained after reporting positive late-stage results for its stroke-prevention drug, while AstraZeneca rose following news late last week that it would invest $2bn to expand biologics manufacturing in Maryland as part of a wider $50bn US growth plan.
Mould noted that "all the major equity indices in Europe moved higher ... with nearly every sector in favour apart from utilities and energy," reflecting a broadly constructive start to the week.
Reporting by Josh White for Sharecast.com.
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