- FTSE closes 50 points ahead
- Traders hopeful after US-China talks
- Miners rally
- Drug makers tumble on Trump post
- AstraZeneca falls 5%
- GSK down 3%
16:55pm: FTSE finishes higher
The FTSE 100 Index ended Monday's session on a positive note, climbing 50 points, or 0.6%, to close at 8,604.98.
15:20pm: Monday's Small Cap headlines
Oriole Resources PLC (AIM:ORR) shares rose after reporting 125 gold-bearing intersections from eight drill holes at its Mbe gold project in Cameroon.
Iofina PLC (AIM:IOF, OTC:IOFNF) posted record annual revenue for the seventh year running, with strong early sales in 2025 pointing to continued demand for crystalline iodine.
Optima Health PLC (AIM:OPT) reported full-year revenue of £105.00 million and adjusted EBITDA of £17.60 million, meeting expectations.
hVIVO PLC (AIM:HVO) was highlighted by Cavendish as offering a compelling opportunity in the human challenge trials segment of drug development.
Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) was flagged as undervalued by Cavendish despite strong cash flow and dividends.
European Green Transition PLC (AIM:EGT) secured a four-year extension for its Olserum #21 exploration licence in southeast Sweden.
Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) reported Q1 2025 revenue of $295.00 million and adjusted EBITDA of $138.00 million.
Rome Resources Plc (AIM:RMR) has confirmed the restart of drilling operations at the Bisie North site in the Democratic Republic of Congo.
2:25pm: Gold stocks slide
Fresnillo and Endeavour Mining led the FTSE 100 fallers on Monday afternoon, as a sharp sell-off in gold hammered shares across the precious metals sector.
Both stocks dropped in response to a 3% fall in the gold price, triggered by a surprise breakthrough in trade talks between the United States and China.
The two countries agreed to suspend the bulk of their tariffs for 90 days, with China slashing levies on US goods from 125% to 10% and the US reducing its own from 145% to 30%.
The deal spurred a wave of risk-on sentiment, prompting investors to retreat from safe-haven assets, including gold, and pile into equities and oil.
Gold fell to around $3,210 per ounce, extending a retreat from its April record high of $3,500. Analysts said a further drop below $3,200 could accelerate the sell-off, wiping out gains from the past two months.
Meanwhile, US Treasury yields climbed and oil gained over 2% on hopes of stronger trade-driven demand.
2:00pm: Wall Street points higher
US stock futures ripped higher Monday morning on the heels of a surprise breakthrough in US-China trade talks.
After weekend negotiations in Geneva, the two economic heavyweights agreed to slash tariffs on each other’s goods by a staggering 115 percentage points—at least for the next 90 days. That temporary truce has breathed new life into risk assets and set the stage for a strong open.
S&P 500 futures are up a solid 3%, while Dow futures have jumped nearly 1,000 points, or 2.4%. Not to be outdone, Nasdaq 100 futures are leading the charge with a 4% gain, as tech stocks catch a tailwind from the cooling trade tensions.
12:45pm: FTSE up 50 points, Wall Street upbeat
At lunch, London’s blue-chip benchmark was up 50 points, or 0.59%, changing hands at 8,605.
London’s miners led the winners board, rallying on the prospect of demand recovery and higher commodity prices.
Drug makers like AstraZeneca and GSK were, meanwhile, hit by separate Trump manoeuvres after the President claimed he would slash US prescription drug prices.
Heading into the afternoon, attention is on Wall Street and the ‘big tech’ stocks in particular (as these were the engine for most of the US equity outperformance last year, and there’ll be ‘bargain hunters’ in any rally).
Analysts at Wedbush, the West Coast-based tech-focused broker, reckon the temporary deal and a longer-term de-escalation “would seemingly be good” for hardware stocks in particular – i.e. Apple and its iPhone unit.
Nevertheless, longer-lasting arrangements will be needed to salve the supply chain.
Wedbush analyst Matt Bryson, in a note, commented: “constant shifting of trade terms remains a weight on our universe with companies uncertain about future supply chain dynamics and as a result reluctant to deploy capital, a dynamic that we believe will continue until more permanent deals are hashed out.”
10:00am: FTSE 100 holds gains as traders wait for the states
London’s blue-chip benchmark was up 40 points, 0.47%, by mid-morning with attentions now turning towards the US premarket indicators – to see whether Wall Street picks up the upbeat momentum seen in Asia and Europe.
The FTSE 100 was pitched at 8,596 at 10:00am.
“While the trade spat has only been dialled back for 90 days, it’s a major breakthrough as far as investors are concerned. The fact the two countries were talking was already a major win given they’ve been at each other’s throats during the first and second Trump presidential terms,” said Russ Mould, investment director at AJ Bell.
“To have reached an initial deal so quickly and one that rolls back tariffs by a large amount is a pleasant surprise.”
Mould added: “The next 90 days are going to be crucial in determining the longer-term tariff levels between the two countries. It would only take China upsetting Trump once for him to rip up the 90-day deal and revert back to sky-high tariffs.
“China won’t want to come across as weak in any discussion and is certainly not a push-over, yet it will be cognisant of the situation’s fragility.”
9:30am: Miners rally as US-China hopes rise
Shares in Britain’s largest mining companies added around £14 billion in value on Monday after the United States and China agreed to sharply scale back tariffs in a move that eased global trade tensions and lifted investor sentiment.
Glencore PLC (LSE:GLEN), while a major miner also has a commodity trading arm, was the biggest beneficiary of the news, with its shares advancing 6.4%.
Antofagasta PLC (LSE:ANTO), Anglo American PLC (LSE:AAL) and Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) also registered gains in the 5-6% range.
The rally followed a surprise deal between the world’s two biggest economies to temporarily reduce tariffs on each other’s goods, ending months of market-rattling uncertainty.
Under the agreement, which followed intensive negotiations in Geneva, the US will lower tariffs on Chinese imports from 145% to 30%, while China will cut its duties on American goods from 125% to 10% for an initial 90-day period.
Miners led gains on the FTSE 100 as the truce raised hopes of stronger industrial demand in China, a major consumer of metals such as copper and iron ore.
Investors bet that easing trade frictions would support global manufacturing and commodity prices, which have come under pressure during the prolonged trade dispute.
9:15am: US–China progress “better than anyone could hope for”
All attentions are on the macro-market moves on Monday as traders, analysts and economists feel their way through reports coming out of yesterday’s trade talks between the United States and China.
Initial reports highlighted “substantial progress” between the trade-warring nations, though in the subsequent hours, it appears the market is pricing in something more substantive.
More details are expected later today, with announcements anticipated.
In the meantime, traders are in a positive and somewhat speculative mood - except those holding pharma stocks (but that's another story).
“This morning we got a bit of a surprise and a jolt higher as the de-escalation seemed better than just about anyone could hope for,” commented Saxo Markets investor strategist Neil Wilson.
“There are some other measures still in place, but basically the US will cut tariffs on Chinese goods to 30% from 145% for 90 days, while China will lower its tariffs on US goods to 10% from 125% for 90 days.”
Wilson reckons these (anticipated) initial outcomes are “buying time for a more comprehensive deal” between the United States and China.
This potential breakthrough appears supportive of natural resources stocks early doors, with the miners among the first big movers.
8:55am: AstraZeneca and GSK hit by Trump social post
Nearly £8 billion was knocked off the value of major pharmaceutical stocks on Monday after Donald Trump vowed to slash US drug prices, reviving a controversial proposal to link American medicine costs to the lowest prices paid abroad.
In a post on Sunday, the president said he would sign an executive order introducing a “most favoured nations” policy, claiming it would cut prescription drug costs by as much as 80% “almost immediately”.
Trump offered no details on how the plan would be implemented, though reports suggest it would focus on medicines bought through Medicare, the US federal health insurance scheme for older Americans.
Shares in FTSE 100-listed drugmakers AstraZeneca PLC (LSE:AZN), GSK PLC (LSE:GSK, NYSE:GSK) and Hikma Pharmaceuticals PLC (LSE:HIK, OTC:HKMPF) fell sharply, as investors braced for renewed political pressure on US drug pricing, a key market for global pharma companies.
Down 5% in early trading, AZ was hardest hit. Analysts estimate that around 40% of its total sales emanate from the US. GSK fell 3% and Hikma was off 2%.
8:15am: FTSE trades up, AZN and GSK tumble
The London index opened Monday’s session positively, rising 56 points to 8,611 in the early exchanges.
Traders are expecting an upbeat day, with Wall Street futures already pointing higher, thanks to the reports of progress of US and Chinese trade relations, after talks this past weekend.
“Financial markets are in optimistic mood on Monday, as China and the US both announced that weekend trade talks had made substantial progress,” commented Kathleen Brooks, research director at XTB.
“A press conference is set to take place this morning, and the market is primed for a dramatic cut in tariff rates between the two nations.”
Brooks added: “The market has been promised more detail on the outcome of these talks later today, and expectations are high that they will include a large drop in trade tariffs from both nations, as well as crucial detail about how the trading relationship between the two countries will heal and develop.”
Elsewhere, however, UK listed drug makers AstraZeneca and GSK tumbled in opening deals following Trump’s social media claim that he will today enact an executive order to slash prescription drug prices in the United States.
AstraZeneca is down close to 5%, losing 504p to 9,736p whilst GKS lost around 3% to 1,339p.
7:30am: London index called higher
The FTSE 100 is seen starting the new week on the front foot, with spreadbetting firm IG Markets calling the blue-chip index up 25 points, at 8,576 to 8,578 ahead of today’s open.
It follows reports over the weekend confirming trade talks between the United States and China had got underway, though evidently the Trump trade wars are far from over.
Today, new and separate Trump headlines threaten to hit the pharmaceutical sector with the US President claiming he plans to ‘cut American drug prices by 80%’.
Trump, via social media post, said he plans to sign an executive order to lower the prices of prescription medicines today. Question marks remain over the feasibility and practicalities of such a move, though in Asia pharma stocks fell in response.
Eyes will be on UK-listed AstraZeneca and GSK as the London market opens.
In other Trump news, the US President has reportedly accepted a luxury Boeing 747-8 jumbo jet from Qatar’s royal family – which initial media reports are calling “the most valuable gift ever received by a foreign government”.
He plans to use the gifted jet temporarily as ‘Air Force One’, the reports claimed.
Back to markets, reports over the weekend claimed Natwest earlier this year were unsuccessful in a bid to acquire Santander’s UK banking operations, with an £11 bid reportedly snubbed by the Spanish financial services group.
Santander deemed the offer too low, according to the FT.