FTSE 100 LIVE: Stocks higher as US and China sign trade agreement, US says 10 deals imminent

Yahoo

a day ago

The FTSE 100 (^FTSE) and European stocks rose as the market opened on Friday, following news that the US had finalised a trade agreement with China.
US commerce secretary Howard Lutnick said the country has imminent plans to rubber stamp agreements with 10 major trading partners following president Donald Trump's tariff shakeup earlier in the year.
The China-US deal was signed two days ago, Lutnick said, adding that it puts in writing the terms hammered out in Geneva last month, including long-discussed rules for the trade of rare earths.
'We just signed with China yesterday,' Trump said during a briefing at the White House, though he did not provide further details.
London's premier index rose 0.3% in early trade, with miners such as Rio Tinto (RIO.L) and Anglo American (AAL.L) among those at the top of the index off the back of the US-China news
The DAX (^GDAXI) in Germany also rose 0.7%.
The CAC 40 (^FCHI) in Paris rallied strongly, up 1.2% after the opening bell. Luxury retailer Kering (KER.PA) led the charge, up 3.5% as former Renault chief Luca de Meo was named as the group's new CEO.
The pan-European STOXX 600 (^STOXX) gained 0.8%.
The latest car production figures from the Society of Motor Manufacturers and Traders (SMMT) shows:
Nike stock headed more than 9.4% higher in premarket trade on Friday following its most recent set of results.
Russ Mould, investment director at AJ Bell, said:
Yahoo Finance UK's Pedro Goncalves writes:
Spotify's shares were trading higher ahead of the US market open, following a 5% increase in the previous session, as analysts raised their price target in anticipation of the company's Q2 earnings report.
Guggenheim Securities analyst Michael Morris reaffirmed his 'buy' rating on the stock and lifted his 12-month price target to $840 from $725. In a note to clients on Wednesday, Morris expressed confidence in Spotify's growth trajectory. 'Our conviction in the mid- and long-term growth opportunity at the global streaming audio leader remains intact,' he said.
Morris highlighted several factors fuelling his optimism, including Spotify's 'core pricing power, potential tier expansion, expanded delivery of audio formats (led by audiobooks and podcasts), and the early-stage commerce opportunity presented by app-store changes.'
Spotify stock reached a milestone on Wednesday, achieving its third consecutive record high. The company is set to release its second-quarter 2025 results and shareholder presentation on Tuesday, July 29, before the market opens.
The Financial Times is reporting this morning that Threadneedle Street is facing up to calls to scale back its bond selling programme, amid fears that it could push borrowing costs up further.
Over the past 15 years the bank had moved to buy bonds during bouts of quantitative easing. It has been shrinking its bond portfolio over recent months in order to bring the balance sheet to a more normal size, the FT said.
In other markets, central banks simply allow bonds to mature, rather than selling them off before they come due.
The FT reported that investors argue the BoE's approach:
The bank will lay out its plans for the next 12 months of quantitative tightening in September.
Stocks in Japan gained precipitously on Friday as the market regained confidence following months of uncertainty on trade.
Japan's Nikkei (^N225) finished the session 1.4% higher, rising past the 40,000 mark for the first time since January.
Japanese stocks were also boosted by rate cut hopes in the US.
Our US team writes:
US stock futures rose as investors bet that an interest rate cut from the Federal Reserve could land sooner rather than later.
Futures attached to the Dow Jones Industrial Average (YM=F) jumped 0.2%. Futures attached to the benchmark S&P 500 (ES=F) and the tech-heavy Nasdaq 100 (NQ=F) ticked up 0.2%.
On Thursday, stocks climbed and the S&P 500 and Nasdaq flirted with, but ultimately missed, hitting new records. The rally came as investors digested new reasons to believe the Fed may cut interest rates as early as July and braced for the arrival of additional insight on Friday.
Fresh ecodata showing a softening in the labor market gave investors a new wave of confidence that the Fed could reduce rates imminently. But bets on a rate cut had already been mounting since President Trump on Wednesday talked up his search for a successor to Federal Reserve Chair Jerome Powell, and new reports indicated he wants to reveal his pick early.
Hello from London! Lucy Harley-McKeown here. It's been a busy week already but we've got more for you this morning as we look to the UK government's plans for welfare and an impending US-China trade deal.
House sales data and car production numbers are also on the slate.
Let's get to it.
The latest car production figures from the Society of Motor Manufacturers and Traders (SMMT) shows:
Nike stock headed more than 9.4% higher in premarket trade on Friday following its most recent set of results.
Russ Mould, investment director at AJ Bell, said:
Yahoo Finance UK's Pedro Goncalves writes:
Spotify's shares were trading higher ahead of the US market open, following a 5% increase in the previous session, as analysts raised their price target in anticipation of the company's Q2 earnings report.
Guggenheim Securities analyst Michael Morris reaffirmed his 'buy' rating on the stock and lifted his 12-month price target to $840 from $725. In a note to clients on Wednesday, Morris expressed confidence in Spotify's growth trajectory. 'Our conviction in the mid- and long-term growth opportunity at the global streaming audio leader remains intact,' he said.
Morris highlighted several factors fuelling his optimism, including Spotify's 'core pricing power, potential tier expansion, expanded delivery of audio formats (led by audiobooks and podcasts), and the early-stage commerce opportunity presented by app-store changes.'
Spotify stock reached a milestone on Wednesday, achieving its third consecutive record high. The company is set to release its second-quarter 2025 results and shareholder presentation on Tuesday, July 29, before the market opens.
The Financial Times is reporting this morning that Threadneedle Street is facing up to calls to scale back its bond selling programme, amid fears that it could push borrowing costs up further.
Over the past 15 years the bank had moved to buy bonds during bouts of quantitative easing. It has been shrinking its bond portfolio over recent months in order to bring the balance sheet to a more normal size, the FT said.
In other markets, central banks simply allow bonds to mature, rather than selling them off before they come due.
The FT reported that investors argue the BoE's approach:
The bank will lay out its plans for the next 12 months of quantitative tightening in September.
Stocks in Japan gained precipitously on Friday as the market regained confidence following months of uncertainty on trade.
Japan's Nikkei (^N225) finished the session 1.4% higher, rising past the 40,000 mark for the first time since January.
Japanese stocks were also boosted by rate cut hopes in the US.
Our US team writes:
US stock futures rose as investors bet that an interest rate cut from the Federal Reserve could land sooner rather than later.
Futures attached to the Dow Jones Industrial Average (YM=F) jumped 0.2%. Futures attached to the benchmark S&P 500 (ES=F) and the tech-heavy Nasdaq 100 (NQ=F) ticked up 0.2%.
On Thursday, stocks climbed and the S&P 500 and Nasdaq flirted with, but ultimately missed, hitting new records. The rally came as investors digested new reasons to believe the Fed may cut interest rates as early as July and braced for the arrival of additional insight on Friday.
Fresh ecodata showing a softening in the labor market gave investors a new wave of confidence that the Fed could reduce rates imminently. But bets on a rate cut had already been mounting since President Trump on Wednesday talked up his search for a successor to Federal Reserve Chair Jerome Powell, and new reports indicated he wants to reveal his pick early.
Hello from London! Lucy Harley-McKeown here. It's been a busy week already but we've got more for you this morning as we look to the UK government's plans for welfare and an impending US-China trade deal.
House sales data and car production numbers are also on the slate.
Let's get to it.