FTSE 100 Rises as Asian Markets Rally Amid Eased Trade Tensions

Bassyonni

ago 3 hours

The FTSE 100 index has shown a positive trend, increasing by 50 points to reach 9,404. This rise coincides with a rally in Asian markets amid eased trade tensions, primarily influenced by recent comments from former U.S. President Donald Trump.

Asian Markets Rally

Asian stock exchanges experienced significant gains, bolstered by Trump’s softened stance on China. He indicated that a planned meeting with Chinese President Xi Jinping would proceed and described the proposed 100% tariffs as “not sustainable.”

Tokyo’s stock market surged by 3.4%, achieving a record high after political developments.
Tokyo’s ruling party struck a coalition agreement, paving the way for Sanae Takaichi to potentially become Japan’s first female prime minister.
Hong Kong and Shanghai also saw gains, with Hong Kong appreciating by over 2.5%.
Markets in Seoul, Wellington, and Taipei recorded positive movements.

Economic Outlook and Trade Talks

Strong Chinese GDP data has further pleased investors, contributing to the overall positive sentiment. Additionally, the U.S. stock market demonstrated a recovery on Wall Street, particularly for bank shares, after significant losses earlier.

This positive environment cultivated optimistic expectations for a calmer trading week in London, particularly after the recent fluctuations. Traders remain hopeful as the global economic outlook brightens, suggesting a more stable atmosphere ahead.

B&M Retail Faces Challenges

In contrast, B&M, a UK-based discount retailer, faced setbacks that have negatively impacted its shares. The company saw a staggering 15% drop at the market open after issuing a profit warning and announcing the departure of its Chief Financial Officer (CFO), Mike Schmidt.

B&M’s Profit Warning Details

B&M’s difficulties arose from an accounting error, with approximately £7 million in overseas freight costs not being properly recorded. This led the company to lower its adjusted EBITDA forecast from a range of £510 million to £560 million down to £470 million to £520 million.