The FTSE 100 rallied on Monday as European markets tracked Asian stocks higher amid trade negotiation hopes.
London’s leading index was 0.3% at the time of writing.
“A big recovery in Asian markets helped give the FTSE 100 a lift as investors look to put a difficult week behind them,” says AJ Bell investment director Russ Mould.
Investors will be laser-focused on talks between the US and China this week. The outcome and any accompanying social media posts by the US president could set the tone for financial markets and possibly push global indices to fresh record highs.
“Market sentiment improved slightly after President Donald Trump signalled that broad tariffs on China would be unsustainable and negotiators from both sides confirmed plans for renewed talks in the coming days,” said Kudotrade’s Konstantinos Chrysikos.
“Any progress this week could reinforce risk appetite.”
There was indeed a risk-on feel to trade in FTSE 100 shares on Monday as cyclical sectors, including financials, energy and engineering, gained.
The FTSE 100’s China-focused banking stocks were among the top risers with Prudential, Standard Chartered and HSBC gaining between 1.8%-2.2%.
Babcock was the top riser with gains of 2.4% as the defence contractor looked set to snap a losing streak.
Legal & General edged lower after announcing £2bn investment to spur the regeneration of regional housing and infrastructure.
Traders booked short-term gains in Pearson after the publisher surged on Friday. Shares were down 2.2% and were at the bottom of the leaderboard.