The FTSE 100 started Monday’s session firmly higher before falling back as details of the US/China trade deal emerged.

US equity futures surged overnight, leading to a strong start for London’s leading index. However, trade became choppy after the terms of a 90-day deal between the US and China hit the wires and raised questions about positioning in the defensively oriented FTSE 100.

Under the terms of the interim agreement, tariffs on Chinese imports to the US will be reduced to 30%, and US imports to China will fall to 10%.

While this is a major improvement to the 145% tariff on Chinese imports and 125% on US imports, it will still make most goods much more expensive than before the Liberation Day announcement and threaten US economic growth.

That said, the willingness of China and the US to sit down and thrash out a deal is a major boost to risk sentiment and signals that further improvements to the terms of their trade relationship could be achieved in the coming months.

“The US-China tariff truce is a tactical pause, not a final deal but for markets, but it’s a meaningful de-escalation,” explained Lale Akoner, global market analyst at eToro.

“While the structural issues remain unresolved, the signal is clear: neither side wants to push trade tensions further. Slashing duties from 145% to 30% (US) and 125% to 10% (China) marks a dramatic de-escalation, likely aimed at calming markets and averting further economic drag. 

“Still, follow-through matters more than headlines. The deal is still short on detail, and it’s unclear what an “acceptable” outcome looks like for either side.”

London’s leading index touched 8,646 in early trade on Monday – the highest point since Trump announced tariffs in early April – but turned negative shortly after the particulars of the US and China deal.

S&P 500 futures remained positive, but gave up ground in the wake of the announcement.

The FTSE 100’s China-focused stocks were at the top of the leaderboard with Glencore, Anglo American and Standard Chartered all surging more than 5%.

However, AstraZeneca weighed on the index with little progress on the plans for US tariffs on pharmaceuticals.

There were also big declines for precious miners Endeavour Mining and Fresnillo as gold prices tanked on the US/China deal.

The FTSE 100 outperformed other major global equity indices such as the S&P 500 during the worst of the trade-induced volatility, so it wouldn’t be a surprise to see the index underperform as deals are made and risk sentiment improves.

Investment and trading platform firm IG Group revealed the benefits of the Trump-induced market volatility in a short trading statement released on Monday.

The FTSE-250 firm revealed that heightened market volatility, particularly during April, has driven client trading activity well above typical levels.

IG said it expects its full-year revenue and adjusted profit before tax to meet or slightly surpass the upper end of analyst consensus, currently projected at £1.05 billion and £516.3 million respectively.

In April, we explained why trading platforms such as IG always do well during periods of volatility. Dramatic market swings almost always increase trading activity, directly bolstering the revenue for brokers like IG.

IG Group also provided an update on its balance sheet management and announced a new credit facility that is designed to help the group make further acquisitions. IG recently completed the takeover of Freetrade.

IG Group shares were flat at the time of writing after rallying around 20% from post-tariff lows.

Autonomous vehicle technology company Guident has filed for its US IPO as the sector heats up amid the wider adoption of autonomous vehicles across the globe.

The Tekcapital portfolio company announced its intention to list on the NASDAQ at the beginning of the year. Many companies put off their plans to list amid heightened volatility caused by Trump’s trade policies, and today’s announcement comes after a sustained period of improvement in US equity markets.

Guident’s S-1 filing with the SEC has been made confidentially, which allows the company to keep commercially sensitive information private and gives them greater control over the timing of their IPO.

Information related to the IPO will be made public in the run-up to the IPO after a period of review by the SEC.

“The biggest advantage of confidential filings is withholding information from competitors for a few months, compared to a traditional filing that everyone could see,” said Jay Ritter, a finance professor at the University of Florida, to Forbes.

US tech giants, including Uber, Lyft and Airbnb, have opted to use confidential IPO filings in the past.

Tekcapital didn’t share any information relating to the IPO fundraise or valuation in today’s announcement.

“The number of shares to be offered and the price range for the proposed offering have not yet been determined,” the Tekcapital announcement read.

Guident’s IPO filing has been announced against the backdrop of rapid expansion across the autonomous vehicle industry. Notable recent developments include Uber’s investment in WeRide to expand AV taxi operations into 15 more cities globally and Waymo’s plans to add 2,000 more vehicles to its fleet through 2026.