20th Oct 2025 16:59
(Alliance News) - The FTSE 100 started the week on the front foot, closing higher on Monday, as hopes grew that a trade deal between the US and China could be struck.
The FTSE 100 index closed up 49.00 points, 0.5%, at 9,403.57.
The FTSE 250 ended 85.52 points higher, 0.4%, at 21,868.48 but the AIM All-Share shed 1.59 points, 0.2%, at 771.06.
The Cboe UK 100 ended up 0.6% at 940.63, the Cboe UK 250 closed 0.3% higher at 19,051.96 while the Cboe Small Companies advanced 0.3% at 17,551.45.
In European equities on Monday, the CAC 40 in Paris ended 0.4% higher, while the DAX 40 in Frankfurt jumped 1.8%.
Stocks in New York were higher at the time of the London close. The Dow Jones Industrial Average was up 0.8%, the S&P 500 was 1.0% higher, while the Nasdaq Composite advanced 1.4%.
Joshua Mahony, chief market analyst at Scope Markets, said fears around the US-China trade spat have abated for the time being.
"Despite recent rumours that the Chinese plan to hold out for as long as possible to put pressure on Trump, the US administration has already taken a notably softer tone that indicate an agreement in the coming weeks," he noted.
"There is a confidence that the Chinese also want to work towards a solution after [US Treasury Secretary] Scott Bessent noted relations with Beijing had 'de-escalated' to the point that a meeting with Chinese Vice Premier He Lifeng was expected this week," Mahony added.
The pound was quoted higher at USD1.3424 at the time of the London equity market close on Monday, compared to USD1.3398 on Friday.
The euro stood at USD1.1662, slightly lower compared to USD1.1664. Against the yen, the dollar was trading at JPY150.52, higher compared to JPY150.31.
The yield on the US 10-year Treasury was quoted at 4.00%, unchanged from Friday. The yield on the US 30-year Treasury stood at 4.59%, narrowed from 4.60% on Friday.
Gold shot up once more. The yellow metal traded at USD4,345.43 an ounce on Monday, up from USD4,242.28 on Friday.
Bank of America sees the risk of a correction near-term, but still expects further upside in 2026, with gold potentially rising to USD5,000 per ounce.
Housebuilders were a weak feature on the FTSE 100 after new data from Rightmove showed the UK housing market has seen little sign of its usual autumn bounce, amid uncertainty over potential property tax reforms in next month's budget.
Rightmove said the average asking price of a property coming to market rose 0.3% in October, or GBP1,165, to GBP371,422. The increase was well below the ten-year average October rise of 1.1%.
"Speculation that the budget may increase the cost of buying or owning a property at the higher end of the market has given some movers, particularly in the south of England, a reason to wait and see what's announced in the budget," Colleen Babcock, of Rightmove, said.
The report weighed on London-listed housebuilders with Berkeley Group slipping 1.2%, Persimmon declining 1.8% and Barratt Redrow falling 0.9%.
Anthony Codling at RBC Capital Markets said the report confirms "that we are not seeing the usual autumn selling season."
"It seems to us that there is a lot riding on the budget for the UK housing market. The chancellor has a tricky path ahead to choose, and it will be interesting to see which path she takes," he added.
On the FTSE 250, B&M European Retail slumped 22% as it said its chief financial officer is stepping down, after it lowered profit guidance after identifying an accounting error.
It's the latest mishap for the retailer, which was relegated from the FTSE 100 index to the FTSE 250 at the end of 2024, and lost its previous chief executive, Alex Russo, after a profit warning in February. Shares have fallen 60% in the past 12 months.
B&M now expects adjusted earnings before interest, tax, depreciation and amortisation between GBP470 million to GBP520 million for the financial year ending March 28, 2026, down from GBP510 million to GBP560 million previously expected. Adjusted Ebitda in financial 2025 was GBP620 million.
B&M had set this revised guidance just two weeks ago, prompting analysts to lower forecasts at the time.
Jefferies analyst Andrew Wade called it "very poor optics" for B&M, and an update that "erodes trust further".
B&M said Chief Financial Officer Mike Schmidt intends to step down. He will remain at B&M until a replacement is in place.
Dan Coatsworth at AJ Bell said "there was no way", Schmidt could have stayed given the severity of the error.
He said the error suggests the business has "poor financial controls" and it's "inevitable" that investors will now start to question if other accounting mistakes have been made.
Among the FTSE 250 rises, Ithaca Energy climbed 2.9% as Jefferies upgraded to 'buy' from 'hold' with a 220 pence per share price target.
Various Eateries soared 20% as it said the warm weather helped like-for-like sales pick up in the second half of the financial year after a subdued start.
The London-based operator of restaurant, clubhouse and hotel sites under the Coppa Club and Noci brands expects revenue to rise 6% to GBP52.4 million for the financial year to September 28 from GBP49.5 million the year prior, ahead of market expectations for GBP50.7 million.
The company forecast "record" adjusted earnings before interest, tax, depreciation and amortisation of "at least" GBP1.1 million, up from GBP300,000 a year earlier, and beating the market view of GBP400,000.
Various Eateries said like-for-like sales grew 4% in the second half of the financial year, and 2% across the full year, improving from flat in the first half.
Brent oil traded at USD60.69 a barrel, down from USD61.03 late Friday.
The biggest risers on the FTSE 100 were Polar Capital Technology Trust, up 11.00 pence at 440.00p, Whitbread, up 71.00p at 2,973.00p, Fresnillo, up 56.00p at 2,408.00p, Airtel Africa, up 5.20p at 230.00p and Weir Group, up 64.00p at 2,850.00p.
The biggest fallers on the FTSE 100 were Pearson, down 31.00p at 1,088.50p, Persimmon, down 21.50p at 1,152.00p, AB Foods, down 34.00p at 2,205.00p, Rightmove, down 10.00p at 665.40p and Centrica, down 2.35p at 171.90p.
Tuesday's global economic diary sees Canadian CPI figures and UK public sector net borrowing data.
Tuesday's UK corporate calendar has a trading update from distribution and outsourcing Bunzl and property investment and development company, Segro.
By Jeremy Cutler, Alliance News reporter
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