Monday morning witnessed a buoyant start for the financial markets, as the FTSE 100 opened significantly higher. The blue – chip index saw a 0.8 per cent gain at the opening bell, a direct result of investors’ positive reaction to the news of progress in the trade negotiations between the United States and China. This optimistic start set a positive tone for the week ahead in the UK market. Meanwhile, the sterling took a hit, weakening by 0.3 per cent against the dollar, with the exchange rate falling to 1.33.
The positive sentiment was not limited to the UK. European markets also displayed strength. Germany’s DAX index climbed an impressive 1.3 per cent, while France’s CAC 40 registered a gain of over one per cent. These moves across European indices further emphasized the broad – based optimism triggered by the developments in the US – China trade talks.
The source of this market excitement could be traced back to statements made by US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer. Speaking to reporters on Sunday, they announced that significant headway had been achieved in the trade negotiations. Bessent stated, “I’m happy to report that we made substantial progress between the United States and China in these very important trade talks.” However, it remains important to highlight that, as of now, officials have refrained from disclosing specific details about the contents of the anticipated trade agreement, leaving market participants eagerly awaiting further information.
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