CytoMed stock jumps after announcing clinical trial partnership in Malaysia

Investing.com - European stocks traded in a muted fashion Monday, with investors cautiously awaiting the conclusion of the Federal Reserve’s two-day policy meeting later in the week.

The DAX index in Germany gained 0.1% and the CAC 40 in France slipped 0.1%, while the FTSE 100 in the U.K. fell 0.2%. 

Fed policy decision in focus  

The U.S. central bank is widely expected to cut interest rates on Wednesday, especially after the delayed release of September’s core personal consumption expenditures price index came in softer than expected at the end of last week.

Fed funds futures are pricing in a roughly 88% chance of a Fed cut, according to CME’s FedWatch tool.

However, the signaling of future monetary policy remains open given the expected dissent among the Fed policymakers over the extent of inflation concerns and the health of the overall U.S. economy.

More central banks set to meet  

The Federal Reserve isn’t the only central bank making policy decisions this week, with the Swiss National Bank, the Reserve Bank of Australia and the Bank of Canada also due to hold meetings this week.

Next week sees the Bank of England, the Bank of Japan and the European Central Bank pronounce their latest views of monetary policy.

German industrial production rose in October

German industrial production rose much more than expected in October, official data showed on Monday, offering hope that the eurozone’s dominant economy was recovering as the year grinds to a close.

Industrial production increased by 1.8% compared with the previous month, the federal statistics office said on Monday, ahead of the predicted 0.4% rise.

The German Economic Institute IW forecast last week that Germany’s economic recovery will remain subdued next year as exports struggle and global trade slows. 

The IW forecast Germany’s real gross domestic product would grow only slightly this year, by 0.1% after two years of contraction, before hitting 0.9% next year, marking a notable increase.

Unilever’s ice cream spinoff to start trading

In the European corporate sector, Unilever (LON:ULVR) stock retreated Monday after the consumer goods company said it had completed the demerger of its ice cream business.

The Magnum Ice Cream Company, now the world’s largest standalone ice cream business and home to brands including Wall’s, Ben & Jerry’s and Cornetto, has received a primary listing on Amsterdam’s Euronext exchange.

Secondary listings are also set to begin trading in London and New York.

Crude trades falls

Oil prices are trading lower on Monday, despite earlier trading near two-week highs, as investors expect a likely Federal Reserve interest rate cut this week to lift economic growth and energy demand.

Brent futures declined 1.6% to $62.73 a barrel, and U.S. West Texas Intermediate crude futures fell 1.6% to $59.11 a barrel.

Both contracts closed Friday’s trading session at their highest levels since November 18.

Aside from the Fed meeting, progress towards peace in Ukraine remains slow, and Reuters reported that the Group of Seven countries and the European Union are in talks to replace a price cap on Russian oil exports with a full maritime services ban, which would likely further curb supply from the world’s second-largest oil producer.

Investing.com -- British stocks fell on Monday, while the pound drifted lower and wider European markets delivered a mixed performance across the region.

The blue-chip index FTSE 100 declined 0.2% and the British GBP/USD fell 0.1% against the dollar to above 1.33.

The DAX index in Germany gained 0.1%, and the CAC 40 in France fell 0.1%.

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UK round up

TotalEnergies SE (EPA:TTEF) has agreed to merge its UK operations with Repsol (BME:REP) and Hitec to form the largest independent oil and gas producer in the United Kingdom.

The deal will give TotalEnergies a 47.5% stake in the combined entity, named NEO NEXT+, making it the largest shareholder. HitecVision will control 28.875% while Repsol will hold 23.625%.

In other market news, UBS downgraded Trainline PLC (LON:TRNT) to Neutral from Buy, reducing its price target to 235p from 465p. The bank cited a lack of catalysts to improve market sentiment ahead of the UK government’s planned ticketing platform launch, noting that despite Trainline’s strong execution, the market continues to price in a high probability of negative disruption.

Barclays Capital upgraded Vodafone Group PLC (LON:VOD) to "overweight" from "equal weight" and raised its price target to 120 pence from 100 pence, pointing to expectations of a strategic turnaround after years of declining earnings.

Meanwhile, Jefferies downgraded NextEnergy Solar Fund Ltd (LON:NESF) to "underperform" from "hold" on Monday. Analysts warned that the closed-end solar investment company has breached its preference share gearing covenant with a debt to enterprise value ratio of 59%, exceeding the 50% limit. This could force significant deleveraging and create risks for its dividend, according to Jefferies.

Magnum Ice Cream shares started trading for the first time Monday on Amsterdam and London markets, opening at €12.20 on the Amsterdam exchange.

The opening price came in below the technical reference price of €12.80 that was announced Friday. Despite the lower-than-expected debut price, Magnum shares moved upward during early trading sessions.

In other market news, Smith & Nephew PLC (LON:SN) announced new mid-term targets, aiming for 6-7% revenue compound annual growth rate through 2028, above current analyst consensus of 5.2%.

The medical technology company outlined its "RISE" strategy at its Capital Markets Day in London, targeting 9-10% trading profit CAGR, over $1 billion in free cash flow, and 12-13% return on invested capital by 2028.

For 2025, Smith+Nephew reaffirmed its revenue growth guidance of around 5% while raising its trading margin guidance to at least 19.5%, up from the previous 19-20% range. The company also increased its free cash flow target to around $800 million from $750 million, driven by working capital improvements and operational efficiency.

Anglo American PLC (LON:AAL) said Monday it has withdrawn a resolution from its upcoming General Meeting that would have amended the terms of executive incentive plans amid shareholder concerns.

The company announced that Resolution 2, which proposed changes to the 2024 and 2025 Long-Term Incentive Plan Awards for Executive Directors, will no longer be considered at the meeting scheduled for Tuesday.

In executive moves, Oxford Nanopore Technologies Ltd (LON:ONT) announced the appointment of Francis Van Parys as its new Chief Executive Officer, effective March 2, 2026. Van Parys will succeed Gordon Sanghera, who has led the molecular sensing technology company since its founding in 2005.

Van Parys brings over 20 years of experience leading life science businesses, currently serving as President and CEO of Radiometer, a global acute care diagnostics company within Danaher Corporation. His previous leadership roles at Cytiva and GE Healthcare included positions across Europe, Asia, and North America.