The FTSE 100 got off to a benign start to the week as investors awaited news from trade talks between the US and China in London.
London’s leading index was down 0.1% at the time of writing.
“There’s caution at the start of the week, as trade talks get underway in London to try to stem a bigger trade war erupting between the world’s largest two economies,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
“The UK has a new role as an intermediary between a belligerent US and an unyielding China. While Xi Jinping’s administration has shown determination not to bow down to Trump’s tariff intimidation, having already been forging deeper trading relationships with other nations, there are hopes that both sides will want to agree on a deal. China’s flexed its muscles by restricting the export of rare earth minerals, vital for so many industries, including car production.”
Although markets are becoming accustomed to the unpredictability of Trump’s approach to trade negotiations, the talks in London still have the power to move markets, and traders were holding off big bets on Monday.
China-focused FTSE 100 stocks were marginally bid in the hope of progress between China and US. Glencore rose 0.8% and Prudential rose 0.9%.
However, the optimism wasn’t shared among all mining stocks, with Antofagasta and Rio Tinto trading slightly negatively.
M&G was the FTSE 100’s top riser after the asset manager received a price target upgrade from UBS. Analysts now have a price target of 275p. M&G shares were 2% higher at 248p.
WPP was the top faller on the news that CEO Mark Read will step down at the end of the year, after a period of poor performance for the shares.
“The fact WPP’s share price had more than halved over the past three years meant Mark Read’s days were always numbered as CEO,” AJ Bell investment director Russ Mould.
“Shareholders can be patient, but there reaches a point where they can wait no longer and something has to change in order to revive the share price.”