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The FTSE 100 recovered some of Friday’s heavy losses, while gold rose once again as the President donald trump Toned down his rhetoric on the trade dispute between the US and China.
The FTSE 100 index rose 15.40 points, 0.2%, to 9,442.87. The FTSE 250 rose 262.48 points, 1.2%, to 22,064.32, and the AIM All-Share rose 6.14 points, 0.8%, to 792.47.
CAC in European stocks inches 40 on Monday Paris closed up 0.2%, while the DAX 40 frankfurt Ended at 0.6%.
Stocks were up in New York at that time London Close recapturing some of Friday’s decline.
Over the weekend, Mr Trump said the US wants to help China, not hurt it, speaking in a more cordial tone on Friday, days after threatening “massive” additional tariffs.
“America wants to help China, not hurt it!!!” he said in a Sunday post on Truth Social. He further said, “Respected President Xi [Jinping]…does not want recession for his country”.
Jim Reed at Deutsche Bank said Friday’s developments were a reminder that underlying tensions between the two countries still exist, and he thought these tensions would probably be a recurring theme in the coming years as the two sides compete for dominance on the global stage.
He suggested, “China currently has considerable leverage in the rare earth market and is eager to use this to secure a better deal – especially in the chip sector, where the US has imposed export controls. So, this battle is shaping up to be rare earth versus AI chips.”
Meanwhile, the US government shutdown is dragging on. It started in the beginning of the month.
Since then, a non-farm payrolls report has been unpublished.
On Friday, the Bureau of Labor Statistics (BLS) said US inflation data due this Wednesday has been pushed up to October 24.
“No further releases will be rescheduled or produced until the resumption of regular government services. This release allows the Social Security Administration to meet statutory deadlines required to ensure accurate and timely payment of benefits,” the BLS said.
Barclays said September data quality “should remain unaffected since collection ended before the shutdown, but a prolonged shutdown could impact October data collection and quality”.
At the close of the London equities market on Monday, the pound fell to $1.3331, down from $1.3338 on Friday.
The euro stood at $1.1569, lower than $1.1616. Against the yen, the dollar was trading at 152.30 yen, higher than 151.87 yen.
The yield on US 10-year Treasuries was reported at 4.04%, down from 4.07% on Friday. The yield on the US 30-year Treasury fell to 4.62% from 4.66%.
On the FTSE 100, gold miners Fresnillo and Endeavor Mining jumped 9.1% and 11% respectively as gold’s safe haven qualities pushed the price of the yellow metal to new highs.
On Monday, gold traded at $ 4,093.56 an ounce, which was at $ 4,014.76 on Friday.
Copper miners were also in demand as the price of the metal rose 6.5%. Glencore jumped 3.3% and Antofagasta jumped 5%.
Elsewhere, M&G gained 3% from Berenberg’s upgrade to ‘buy’ from ‘neutral’.
The broker believes the UK life insurance sector will see an acceleration in dividend per share growth in the coming years.
AstraZeneca gave back early gains and closed down 0.7%, despite confirming a “historic” drug pricing deal with the US.
The agreement, which follows a similar agreement announced last month with Pfizer, requires AstraZeneca to adhere to “most favored nation” pricing – which is equivalent to the lowest price offered in other wealthy countries. MedicaidUS health insurance program for low-income Americans.
The company said the specific terms of the agreement remain confidential.
In exchange, Trump administration officials agreed to a three-year delay on new tariffs on AstraZeneca, which had previously announced plans to invest $50 billion in the U.S. in response to tariff threats.
UBS analyst Matthew Weston said the deal removes uncertainty over Section 232 tariffs.
The deal is the first for a non-US drugmaker with the White House, with AstraZeneca also expected to do the same with its peers.
On the FTSE 250, Big Yellow Group jumped 15% after Blackstone Europe confirmed it was a potential bidder for the company.
Surrey-based self-storage site operator Big Yellow said it has held meetings with a “small number of parties” that could make a takeover offer.
Blackstone Europe, part of New York-based private equity investment manager Blackstone, said any offer for Big Yellow would be through one or more investment funds it advises.
Oxford Instruments said order intake declined in the first half of its fiscal year due to tariff disruption, meaning full-year revenue is likely to be little changed year-on-year.
Chief Executive Richard Tyson said the financial year had begun with the beginning of a “tumultuous time in our markets”, and despite an “improving picture” in the second quarter, “we are now recognizing that we will not recover from this situation.” [first half] “Lack of revenue.”
In response, shares of the provider of high technology products and services to industry and scientific research communities fell 7.6%.
Brent oil traded at $63.40 a barrel on Monday, up from $63.19 late Friday.
The biggest risers on the FTSE 100 were Endeavor Mining, up 348.00 pence at 3,436.00p, Fresnillo, up 216.00p at 2,592.00p, Antofagasta, up 134.00p at 2,827.00p, Anglo American, up 119.00p. 2,999.00p and Glencore, up 11.40p at 357.25p.
The biggest fallers on the FTSE 100 were BAE Systems, down 31.00p at 1,951.50p, Intertek, down 74.00p at 4,812.00p, British American Tobacco, down 57.00p at 3,788.00p, Babcock International, down 18.00p. and Burberry at 1,211.00p, Down 17.00p at 1,182.50p.
Tuesday’s global economic diary contains UK unemployment and average earnings figures.
Tuesday’s UK corporate calendar features full-year results from housebuilder Bellway and a trading statement from miner Rio Tinto.
Contributed by Alliance News