London pre-open: Stocks seen up as focus turns to US
By Michele Maatouk
Date: Monday 29 Sep 2025
(Sharecast News) - London stocks were set to gain at the open on Monday as attention turned to the US to see if a government shutdown can be avoided and to Friday's all-important non-farm payrolls report.
The FTSE 100 was called to open around 40 points higher.
Kathleen Brooks, research director at XTB, said: "At the start of a new week, the focus is on the US, and whether the world's largest economy can avoid a government shutdown on Tuesday at midnight. The Republicans and Democrats are locked in a fierce battle to avoid a funding deadline at the end of this month, and at this late stage it appears that both sides are far from an agreement to extend government funding, which increases the chance of a shutdown.
"Although stock markets have absorbed this risk well, and futures point to a higher open for both European and US indices later today, concern about a government shut down is being expressed via the gold price, which has surged above $3,800 per ounce this morning, and is higher by more than $40 at the start of the week.
"President Trump is scheduled to meet with four top Congressional leaders on Monday in a last-ditch attempt to avoid a shutdown, which may be fueling the positive tone to equities at the start of this week. However, this meeting will come before a crucial Senate vote later on Monday that will determine whether or not the government will shut down. The Republicans were able to agree on a funding bill earlier this month, however, this was blocked by Senate Democrats who sought more generous healthcare funding."
If there is a shutdown, the payrolls report release could be delayed and this could have "major ramifications" for financial markets, said Brooks.
"Although there is a near 90% chance of a rate cut in October, the September jobs data will be watched closely to ratify the view that the US labour market is cooling down, and interest rate cuts are justified."
On the UK macro front, consumer credit, mortgage approvals and net lending figures for August are due at 0930 BST.
A private sector survey released earlier showed business confidence remained low in September as companies forecast further falls in activity during the coming quarter.
According to research from the Confederation of British Industry, firms across the private sector are increasingly pessimistic about the rest of the year.
The latest growth indicator - a composite measure of activity based on responses to three long-running CBI surveys - showed a majority expect activity to decline in the company quarter, with a weighted balance of -20.
A balance is the percentage of companies reporting an increase minus those reporting a decrease.
Weakness was forecast to be broad-based. Business volumes in the service sector were expected to fall, with a balance of -18, due to lacklustre conditions across business, professional and consumer services.
Distribution sales - which covers retail and wholesale - were expected to fall sharply, with a balance of -33, despite the final three months of the year being critical for many retailers.
Manufacturing output, meanwhile, was also set to contract, with a balance of -14.
The downbeat outlooks comes after overall private sector activity fell in the three months to September, with a balance of -32.
Weighing on that was the UK's dominant service sector. It saw business volumes slide in the last three months, with a balance of -35. The downturn was comparable across business and professional services - at 35% - and consumer services, with a balance of -34.
UK businesses are battling a number of headwinds, including higher costs - following rises in employer's National Insurance contributions and the minimum wage - sticky inflation, historically high interest rates, tariffs and weak consumer sentiment.
Chancellor Rachel Reeves is due to present her autumn Budget in November.
But despite battling sluggish economic, she also needs to tackle soaring government spending and borrowing.
Further tax rises are increasingly expected as a result.
Alpesh Paleja, deputy chief economist the CBI, said: "The themes cited by businesses paint a by now familiar picture: demand conditions are lacklustre, with firms feeling the knock-on impact of cautious spending and investment behaviour across the economy.
"This is now accompanied by renewed nervousness around the Budget, with businesses concerned about being asked to again shoulder the burden of fixing the public finances."
In corporate news, GSK announced that chief executive Emma Walmsley is to leave the company after nearly a decade in the role.
She will be replaced by the biopharma's chief commercial officer Luke Miels.
Pets at Home said chief financial officer Mike Iddon was retiring after nine years in the job and would be replaced by Sarah Pollard, who joins from consumer goods group PZ Cussons.
Iddon will remain in his role until spring 2026, to ensure an orderly transition, the company said in a statement.
Food packaging business Hilton Food Group said it has sold Fairfax Meadow Europe to Sysco GB, part of the Sysco Group, for £54m in cash.
The FTSE 250 firm said the transaction, which was expected to be earnings dilutive, included a three-year supply agreement with Hilton Food Solutions, ensuring continuity of supply.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN