Must read: FTSE 100, sterling, Watches of Switzerland

ii’s head of investment rounds up the morning’s big news.

4th December 2025 09:15

by Victoria Scholar from interactive investor

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GLOBAL MARKETS

Following a three-day losing streak, the FTSE 100 has opened roughly flat, underperforming the DAX and CAC. Shares in Barclays (LSE:BARC) are outperforming, gaining 2% to hit the highest level since 2008.

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Meanwhile, miners like Endeavour Mining (LSE:EDV) and Fresnillo (LSE:FRES) are at the bottom of the index. Balfour Beatty (LSE:BBY) shares are trading higher after it said 2025 underlying profit from operations would beat last year’s figure leading Peel Hunt to raise its target price on the stock. A number of stocks have gone ex-dividend today including SSE (LSE:SSE), Next (LSE:NXT) and Babcock International Group (LSE:BAB).

The euro hit a seven-week high against the greenback and the pound logged its best session against the dollar since April, gaining 1.1% to hit a six-week peak. However, according to Bloomberg, Goldman Sachs lowered its outlook for the pound due to fiscal challenges in the UK and heightened risks in the labour market.

US futures are hovering around the flatline after the S&P 500 logged a modest gain up 0.3% on Wednesday. ADP private payrolls disappointed in November, falling 32k versus forecasts for growth of 10k, supporting the case for a Federal Reserve rate cut this month.

WATCHES OF SWITZERLAND

Watches of Switzerland Group (LSE:WOSG) reported group revenue of £845 million up 10% in constant currency with group adjusted EBIT of £69 million up 6%. The luxury group also reiterated its FY26 guidance and said it ‘delivered a strong first half’.

The US was a key growth engine for the group with 15% revenue growth to £409 million, while the UK retail market was more challenging amid the weak consumer backdrop – sales growth was up just 2%. The recent reduction in US tariffs on Swiss imports also helps to alleviate trade uncertainty. The company appears to be in a strong position heading into the festive season with trade meeting expectations so far.

European luxury has underperformed the wider stock market this year. However, there are hopes for a revival in 2026, as brands harness creative ways to stimulate demand, coupled with resilient US consumer spending and the potential for improving demand from China.

But after years of price hikes, the pool of potential luxury customers has shrunk. Younger generations in particular, have largely been priced out of the market in a move by the industry that is hard to reverse.

Watches of Switzerland shares opened sharply higher but have since pared some gains. The stock is down 15% this year, underperforming the FTSE 100 and FTSE 250.

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Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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