London’s stock market is gearing up for a positive start on Monday, buoyed by significant international events that have caught the attention of investors. The potential for a new trade deal between the United States and China, along with ongoing discussions regarding a ceasefire in the Ukraine conflict, are the key factors influencing market sentiment.
According to IG, futures suggest that the FTSE 100 will open 28.5 points, or 0.3%, higher at 8,579.35 on Monday. This follows a modest gain on Friday, where the index of London’s large – cap stocks closed up 19.24 points, or 0.2%, at 8,550.85. In contrast, Wall Street ended on a mixed note on Friday, with the Dow Jones Industrial Average dropping 0.3%, the S&P 500 declining by 0.1%, while the Nasdaq Composite managed a marginal increase.
The purported trade deal between the US and China has been a major talking point. The US has announced reaching an agreement in its tariff dispute talks with China. US Trade Representative Jamieson Greer indicated that further details would be made public on Monday. However, the Chinese delegation, led by Vice Premier He Lifeng, remained silent after the talks in Geneva concluded. President Trump celebrated what he called a “total reset” in US – China trade relations on early Sunday, following the first day of high – level talks aimed at easing tensions caused by his aggressive tariff policies. In Asia on Monday, stock markets were showing gains, with the Nikkei 225 index in Tokyo up 0.3%, the Shanghai Composite in China 0.6% higher, the Hang Seng index in Hong Kong rising by 1.2%, and the S&P/ASX 200 in Sydney closing 0.2% up.
Meanwhile, the situation in Ukraine also continues to be a focal point. Russian President Vladimir Putin proposed direct negotiations in the coming days to end the conflict in Ukraine. However, he did not address a 30 – day ceasefire proposal that was put forward hours earlier by European allies of Kyiv, which was reportedly backed by the US. Putin made his proposal for talks in Istanbul on May 15 during a speech at the Kremlin in the early hours of Sunday, shortly after Kyiv and the leaders of France, Germany, the UK, and Poland called for an unconditional 30 – day ceasefire starting on Monday.
In the currency markets, Sterling was quoted lower at USD1.3281 early Monday, compared to USD1.3299 at the close of London equities on Friday. The euro traded at USD1.1220 early Monday, higher than USD1.1263 late Friday. Against the yen, the dollar was up at JPY146.05 versus JPY145.18. Commodity prices also showed movement, with gold quoted lower at USD3,274.35 an ounce early Monday, as opposed to USD3,342.57 on Friday. Brent oil, on the other hand, was trading at USD64.25 a barrel early Monday, higher than USD63.66 late Friday.
Looking at the corporate and economic calendars for Monday, Caledonia Mining is set to release its first – quarter results, and Diversified Energy will issue a trading statement. Economically, comments from Bank of England representatives, including Deputy Governor Clare Lombardelli, are expected. Additionally, Japan will release current account data, and the US will publish its monthly budget statement. These events are likely to further shape market dynamics throughout the day.
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