The FTSE 100 gained again on Monday with bargain hunters out in force picking up those shares heavily hit by Trump’s tariff announcement.
Further evidence that we may have passed the peak of tariff uncertainty encouraged investors to buy into names such as Melrose, Diageo, and JD Sports, among others, that were perceived to be negatively impacted by Trump’s trade policies.
London’s leading index was trading 0.3% higher at the time of writing.
“A weekend light on drama was just what the doctor ordered for financial markets and the FTSE 100 made a strong start on Monday to move closer to recovering all of its post-Liberation Day losses,” said AJ Bell investment director Russ Mould.
“Domestic focused names, including housebuilders and retailers, were among the gainers in London.
“Recent developments have been helpful from a market perspective as US President Donald Trump dialled down the rhetoric around replacing current Federal Reserve chair Jerome Powell and hinted at progress on trade talks. Suggestions of a de-escalation in the tariff stand-off with China were also well received.”
However, the apparent easing in tensions between the US and China failed to inspire any meaningful bid in China-focused stocks on Monday. Miners Glencore, Anglo American and Antofagasta were all trading negatively.
Falling miners suggest the market is taking the optics of reconciliation between China and US with a pinch of salt.
“Quite a lot to unpack, there, and quite a lot of political spin to get round,” said Michael Brown Senior Research Strategist at Pepperstone.
“Again, in short, China continue to refute claims of talks between the two nations.”
Marks & Spencer was the top faller after a cyber attack over the weekend brought its online shopping service to a standstill and forced them to refund shoppers for failed delivery.
Although the actual order refunds are unlikely to have a material impact on the group, the long-term damage to its reputation will be a greater concern.
“While other retailers have not been immune to IT breaches, the depth of Marks and Spencer’s problems in resolving the issue are worrying, and it may take some time to win back some more warier shoppers,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
Marks & Spencer shares were down 2.5% at the time of writing.