FTSE 100 closes at record high as investors assess earnings and US-Japan trade deal
The benchmark FTSE 100 (.FTSE), opens new tab closed up 0.4% at 9,061.49 points. The domestically oriented midcap FTSE 250 (.FTMC), opens new tab also gained 0.4%.
U.S. President Donald Trump struck a trade deal with Japan, lowering tariffs on auto imports and sparing Tokyo from punishing new levies on other goods in exchange for a $550 billion package of U.S.-bound investment and loans.
The UK's automobiles and parts index (.FTNMX401010), opens new tab rose 2.5%, tracking strength in Asian rivals. Aston Martin (AML.L), opens new tab and Dowlais Group (DWL.L), opens new tab gained 8.1% and 1.2%, respectively.
Healthcare stocks (.FTNMX201030), opens new tab rose 2.5%, with AstraZeneca (AZN.L), opens new tab and GSK (GSK.L), opens new tab gaining 3.1% and 1.8% respectively.
Medical equipment and services (.FTNMX201020), opens new tab rose 1.5%, with a boost from Smith+Nephew (SN.L), opens new tab, up 1.8%.
Media stocks (.FTNMX403010), opens new tab advanced 2.2%, boosted by Informa's (INF.L), opens new tab 4.9% rise after the events and academic publishing group raised its annual underlying revenue growth forecast.
Conversely, construction and materials (.FTNMX501010), opens new tab stocks lost 1.5%, with Breedon Group (BREE.L), opens new tab down 7.5%, after the company forecast annual results at the low end of market expectations.
In company news, Alpha Group (ALPH.L), opens new tab hit a record high and was last up 25.6% after U.S. payments firm Corpay (CPAY.N), opens new tab said it would buy the financial services provider in a $2.2 billion (1.6 billion pounds) cash deal.
Hochschild Mining (HOCM.L), opens new tab rose 7.6% on stronger-than-expected quarterly silver output.
J D Wetherspoon (JDW.L), opens new tab gained 1.9% after the pub group reported a rise in sales in recent weeks since May.
British stocks have rallied this year, pushing the FTSE 100 to all-time highs in recent weeks, as hopes of interest rate cuts, optimism over the UK-U.S. trade deal and a surge in commodity prices lifted sentiment.
Traders are currently pricing in an 89% chance of a 25 basis point BoE cut next month, according to data compiled by LSEG.
This week, attention is on the UK flash Purchasing Managers' Index for July, due on Thursday, and retail sales data for June on Friday.
Meanwhile, India and Britain will sign a free trade agreement on Thursday during Indian Prime Minister Narendra Modi's visit to Britain, officials said.
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Sky News
44 minutes ago
- Sky News
PM to hold talks with Trump today - but will have to walk a fine diplomatic line
Gaza and transatlantic trade are set to dominate talks between Donald Trump and Sir Keir Starmer when the pair meet in Scotland later. Downing Street said the prime minister would discuss "what more can be done to secure the ceasefire [in the Middle East] urgently", during discussions at the president's Turnberry golf course in Ayrshire. Talks in Qatar over a ceasefire ended on Thursday after the US and Israel withdrew their negotiating teams. 13:22 Mr Trump blamed Hamas for the collapse of negotiations as he left the US for Scotland, saying the militant group "didn't want to make a deal… they want to die". Sir Keir has tried to forge close personal ties with the president - frequently praising his actions on the world stage despite clear foreign policy differences between the US and UK. The approach seemed to pay off in May when Mr Trump announced the agreement of a trade deal with the UK that would see several tariffs lowered. The two leaders are expected to discuss this agreement when they meet, with the prime minister likely to press the president for a lowering of outstanding tariffs on imports such as steel. 3:31 Prior to the visit, the White House said the talks would allow them to "refine the historic US-UK trade deal". That comes hot on the heels of the US reaching an agreement with the EU, which Mr Trump described as the "biggest dal ever made". This will see 15% tariffs imposed on most European goods entering America, despite the president previously threatening a 30% levy. 1:30 Extracting promises from the president on the Middle East may be harder though. Despite some reports that Mr Trump is growing frustrated with Israel, there is a clear difference in tone between the US and its Western allies. As he did over the Ukraine war, Sir Keir will have to walk a diplomatic line between the UK's European allies and the White House. On Thursday, French President Emmanuel Macron announced his country would formally recognise a Palestinian state in September, the first member of the G7 to do so. That move was dismissed by Mr Trump, who said it "doesn't carry any weight". 0:45 The UK, French and German leaders spoke over the weekend and agreed to work together on the "next phase" in Gaza that would see transitional governance and security arrangements put in place, alongside the large-scale delivery of aid. Under pressure from members of his own party and cabinet to follow France and signal formal recognition of Palestine, Sir Keir has gradually become more critical of Israel in recent months. On Friday, the prime minister said "the starvation and denial of humanitarian aid to the Palestinian people, the increasing violence from extremist settler groups, and Israel's disproportionate military escalation in Gaza are all indefensible". Government sources say UK recognition is a matter of "when, not if" - but it's thought Downing Street wants to ensure any announcement is made at a time when it can have the greatest diplomatic impact. 1:19 Cabinet ministers will be convened in the coming days, during the summer recess, to discuss the situation in Gaza. The UK has also been working with Jordan to air drop supplies, after Israel said it would allow foreign countries to provide aid to the territory. Donald Trump's trip to Scotland comes ahead of his second state visit to the UK in September. Downing Street says Ukraine will also likely be discussed in the meeting with both men reflecting on what can be done to force Russia back to the negotiating table. After the meeting at Turnberry, the prime minister will travel with the president to Aberdeen for a private engagement.
Reuters
an hour ago
- Reuters
Gold falls to near two-week low after US, EU agree to tariff deal
July 28 (Reuters) - Gold prices fell to their lowest level in nearly two weeks on Monday, as a framework trade agreement between the United States and European Union ahead of the August 1 tariff deadline boosted appetite for risk assets. Spot gold was down 0.1% at $3,332.18 per ounce, as of 0208 GMT, after touching its lowest level since July 17. U.S. gold futures edged 0.1% lower to $3,331.60. The U.S. struck a framework trade agreement with the European Union on Sunday, imposing a 15% import tariff on most EU goods - half the threatened rate - and averting a bigger trade war between the two allies that account for almost a third of global trade. However, the agreement left key issues unresolved, including tariffs on spirits. The agreement eased transatlantic trade tensions, putting pressure on gold, said Jigar Trivedi, a senior commodity analyst at Reliance Securities, adding that it also softened the dollar index, which provided some cushion to bullion. The U.S. dollar index (.DXY), opens new tab eased 0.1%, making greenback-priced bullion more affordable for overseas buyers. Risk sentiment improved following the agreement, with European currencies and U.S. stock index futures trading higher. Meanwhile, senior U.S. and Chinese negotiators are set to meet in Stockholm later in the day to address long-standing economic disputes, seeking to extend a truce that has prevented higher tariffs. "In the short term, we don't expect gold to experience wild swings. Investors are turning their focus to a pivotal week for U.S. monetary policy and economic data," Trivedi said. The Federal Reserve is expected to maintain its benchmark interest rate in the 4.25%-4.50% range after its two-day policy meeting concludes on Wednesday. U.S. President Donald Trump said on Friday he had a positive meeting with Powell, suggesting the Fed chief might be inclined to lower interest rates. Spot silver was up 0.2% at $38.23 per ounce, while platinum gained 0.6% to $1,409.50 and palladium rose 0.6% to $1,227.76.
Reuters
an hour ago
- Reuters
Jiangsu Hengrui grants GSK global rights to drug portfolio in $500 million deal
HONG KONG, July 28 (Reuters) - China's Jiangsu Hengrui Pharmaceuticals ( opens new tab said on Monday it has agreed to license the global rights of its HRS-9821 drug and 11 other programmes to GlaxoSmithKline Intellectual Property (GSK) for $500 million upfront. The Chinese pharma group said, opens new tab it could earn up to $12 billion in milestone payments if all options are exercised and targets are met. HRS-9821 is being developed to treat chronic obstructive pulmonary disease (COPD), while the other projects are in early development across areas such as oncology, respiratory, immunology, and inflammation. Shanghai shares of Jiangsu Hengrui climbed 6.6% and its Hong Kong-listed stock jumped 8.5%, outperforming the blue-chip CSI 300 Index's (.CSI300), opens new tab 0.1% slip and the Hang Seng Index's (.HSI), opens new tab 0.3% gain.
