FTSE 100 rises as US-China trade fears ease

The FTSE 100 started the week on the front foot and closed with gains on Monday as hopes grew that a trade deal between the US and China Can be killed.

The FTSE 100 index rose 49.00 points, 0.5%, to close at 9,403.57.

The FTSE 250 rose 85.52 points, 0.4%, to 21,868.48 but Objective The All-Share fell 1.59 points, 0.2%, to 771.06.

In European equities on Monday, the CAC 40 in Paris closed 0.4% higher, while the DAX 40 in Frankfurt jumped 1.8%.

Stocks were high in New York at the time London to close.

The Dow Jones Industrial Average was up 0.8%, the S&P 500 was 1.0% higher, while the Nasdaq Composite advanced 1.4%.

Joshua Mahoney, chief market analyst at Scope Markets, said that fears over the US-China trade dispute have subsided for the time being.

He said, “Despite recent rumors that the Chinese are planning to hold out as long as possible to put pressure on Trump, the US administration has already taken a fairly soft stance that indicates an agreement in the coming weeks.”

“There is a belief that the Chinese also want to work towards a solution after (the US Treasury Secretary).” Scott Besant “Relations with Beijing have ‘degenerated’ to such an extent that a meeting with Chinese Deputy Prime Minister He Lifeng was expected this week,” Mr Mahoney said.

At the close of the London equity market on Monday, the pound was priced at $1.3424, compared to $1.3398 on Friday.

The euro stood at $1.1662, down slightly from $1.1664.

Against the yen, the dollar was trading at 150.52 yen, higher than 150.31 yen.

The yield on the US 10-year Treasury was reported at 4.00%, unchanged from Friday.

The yield on the US 30-year Treasury was 4.59%, down from 4.60% on Friday.

Sleep Shot again. The yellow metal traded at $4,345.43 an ounce on Monday, down from $4,242.28 on Friday.

Bank of America sees risks to a near-term correction, but still expects further upside in 2026, with gold potentially rising to $5,000 an ounce.

Housebuilders were a weak feature on the FTSE 100 after new data from Rightmove showed the UK housing market has seen little sign of its usual autumn bounce amid uncertainty over potential property tax reforms in next month’s Budget.

Rightmove said the average asking price for a property coming on the market rose by 0.3% or £1,165 in October to £371,422. The increase was well below the 10-year average October increase of 1.1%.

Colleen Babcock of Rightmove said, “There is speculation that the Budget could increase the cost of buying or holding a property at the upper end of the market, giving some movers, particularly in the south of England, a reason to wait and see what is announced in the Budget.”

The report put pressure on London-listed housebuilders, with Berkeley Group falling 1.2%, Persimmon falling 1.8% and Barrett Redrow falling 0.9%.

Anthony Cording at RBC Capital Markets said the report confirms “we are not seeing the typical autumn selling season”.

He said, “We feel that a lot hinges on the Budget for the UK housing market. The Chancellor faces a difficult path to choose and it will be interesting to see which path she takes.”

On the FTSE 250, B&M European Retail fell 22% after it said its chief financial officer was stepping down after it lowered profit guidance after identifying an accounting error.

It is the latest casualty for the retailer, which was dropped from the FTSE 100 index to the FTSE 250 at the end of 2024, and lost its previous chief executive Alex Russo after a profit warning in February.

Shares have fallen 60% in the last 12 months.

B&M now expects adjusted earnings before interest, tax, depreciation and amortization to be between £470 million and £520 million for the financial year ending March 28, 2026, down from £510 million to £560 million previously expected.

Adjusted EBITDA in financial year 2025 was £620 million.

B&M set this revised guidance just two weeks ago, prompting analysts to lower forecasts at the time.

Jefferies analyst Andrew Wade called it “very poor optics” for B&M and an update that “further undermines confidence”.

B&M said Chief Financial Officer Mike Schmidt intends to step down and will remain at B&M until a replacement is found.

Dan Coatsworth at AJ Bell said “there was no way” Mr Schmidt could have stopped given the seriousness of the error.

He said the error showed the business had “poor financial controls” and that it was “inevitable” that investors would now begin to question whether other accounting mistakes had been made.

Amid the FTSE 250 rise, Ithaca Energy climbed 2.9% as Jefferies upgraded it to “buy” from “hold” with a 220 pence per share price target.

Various eateries were up 20% as it said warmer weather helped boost like-for-like sales in the second half of the fiscal year after a slow start.

The London-based operator of restaurants, clubhouses and hotel sites under the Coppa Club and Nosy brands expects revenue for the financial year to September 28 to rise 6% to £52.4 million, from £49.5 million a year earlier, ahead of market expectations of £50.7 million.

The company estimates “record” adjusted earnings before interest, tax, depreciation and amortization of “at least” £1.1 million, up from £300,000 a year earlier, and beating the market view of £400,000.

Various eateries said like-for-like sales increased 4% in the second half of the fiscal year, and 2% for the full year, an improvement from flat in the first half.

Brent oil was trading at $60.69 per barrel, down from $61.03 late on Friday.

The biggest risers on the FTSE 100 were Polar Capital Technology Trust, up 11.0 pence at 440.0p, Whitbread, up 71.0p at 2,973.0p, Fresnillo, up 56.0p at 2,408.0p, Airtel Africa, up 5.2p at 230.0p and Weir Group, up 64.0p. 2,850.0p.

The biggest fallers on the FTSE 100 were Pearson, down 31.0p at 1,088.5p, Persimmon, down 21.5p at 1,152.0p, AB Foods, down 34.0p at 2,205.0p, Rightmove, down 10.0p at 665.4p and Centrica, With a decline of 2.35p. 171.9p.

Tuesday’s global economic diary looked at Canadian CPI figures and UK public sector net borrowing data.

Tuesday’s UK corporate calendar features a trading update from distribution and outsourcing bungle and property investment and development company, Segrow.

– Contributed by Alliance News.