UK equities moved higher in early trading on Monday, while the pound showed little movement against the US dollar. European stock markets also opened in positive territory.

At 08:17 GMT, the FTSE 100 was up 0.5%, while sterling edged 0.01% lower against the dollar to 1.33. Elsewhere in Europe, Germany’s DAX rose 0.2% and France’s CAC 40 gained 0.4%.

UK round-up

Hikma Pharmaceuticals PLC (LSE:HIK) announced that Riad Mishlawi has stepped down as Chief Executive Officer and resigned from the Board by mutual agreement. Executive Chairman Said Darwazah, who previously held the CEO role, has taken over chief executive responsibilities with immediate effect. Chief Financial Officer Khalid Nabilsi will also join the Board and take on broader management duties to reinforce execution of the company’s strategic priorities.

Separately, the UK’s Financial Reporting Council said it has opened an investigation into Ernst & Young’s audit of Shell PLC’s 2024 financial statements. The inquiry will assess whether EY breached the UK Revised Ethical Standard, specifically in relation to limits on audit partner tenure.

In regulatory news, the Financial Conduct Authority outlined proposals to overhaul mortgage rules in an effort to make home ownership more accessible, particularly for first-time buyers and the self-employed. The planned reforms focus on four key areas and are also intended to help homeowners release housing equity to support retirement planning.

Meanwhile, Jefferies struck a more cautious tone on UK consumer stocks, pointing to a weakening outlook for household disposable income that it believes is at odds with upbeat sales forecasts and elevated valuations. The broker expects disposable income growth to slow to 1.9% in the 2026/27 fiscal year, down from 2.6% previously, reflecting softer wage growth, higher unemployment and persistent cost pressures.

Jefferies also noted that consensus expectations for like-for-like sales growth at major UK retailers have now exceeded its disposable income growth forecast for the first time since early 2023.

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