21st Sep 2026 06:57
(Alliance News) - Stocks in London are set to open higher on Monday, recovering a fraction of Friday's slump, amid optimism over easing tensions between the US and China, ahead of a meeting between Donald Trump and Xi Jinping.
IG says futures indicate the FTSE 100 to open 27.6 points higher, 0.3%, at 10,686.73 on Monday. The index of London large-caps slumped 157.01 points, 1.5%, at 10,659.13 on Friday.
Sterling edged up to USD1.3375 from USD1.3372 at the time of the London equities close on Friday. Against the euro, it faded to EUR1.1652 from EUR1.1661.
Against the dollar, the euro advanced to USD1.1472 from USD1.1466. The dollar edged down fractionally to JPY157.04 from JPY157.07.
The yield on the US 10-year Treasury was quoted at 5.00%, narrowing from 5.01%. The yield on the US 30-year Treasury was quoted at 5.33%, narrowing from 5.34%.
In China, the Shanghai Composite was up 0.5%, while the Hang Seng Index was 0.6% higher. The S&P/ASX 200 was flat. Financial markets in Tokyo are closed on Monday.
Quintex Intel analyst Stephen Innes remarked that "Trump-Xi truce trade" has been the theme at the start of the week.
"Markets do not need Washington and Beijing to become friends. They need both sides to stop throwing furniture for a while," Innes commented.
"Trump and Xi are trying to keep the next economic collision farther down the road, and risk assets are leaning into the temporary calm."
US and Chinese economic officials discussed creating a communication channel for artificial intelligence concerns at meetings Sunday as they set the stage for a summit of the countries' top leaders this week.
The talks come as both powers confront rising fears that increasingly capable artificial intelligence systems could wipe out humanity, offering a rare incentive for cooperation despite an intensifying race for technological supremacy.
"We just had a very successful engagement with the Chinese on trade and AI," US Treasury Secretary Scott Bessent told reporters after long talks with a team led by Chinese Vice Premier He Lifeng.
The talks are a prelude to a planned White House meeting on Thursday of the leaders of the world's two biggest economies: US President Donald Trump and Chinese President Xi Jinping.
In the US on Friday, performance on Wall Street was mixed with the Dow Jones Industrial Average down 0.2%, the S&P 500 up 0.2% and the Nasdaq Composite up 0.4%.
Trump on Saturday lashed out at critics of artificial intelligence and data centers, saying he would not allow the "destruction" of the industry and announcing the creation of a new government "AI Force."
Trump – who finds himself out of step with growing public skepticism over AI and dire safety warnings from AI industry leaders – said liberals want the "decimation, or destruction, of AI."
"I, as President of the US, will not stand by and let this happen," he wrote on his Truth Social platform.
Brent oil was quoted at USD101.86 a barrel, down from USD104.37. Gold traded at USD4,357.63 an ounce, up from USD4,355.67.
Rabobank analysts commented: "Political and geopolitical developments again stole the headlines over the weekend, with attendant market implications. Active European gasoil futures are lower this morning despite news that Ukraine had launched a 'massive' drone attack against Moscow that had damaged a major refinery.
"Brent crude oil prices are also lower despite news that Donald Trump had cut short a trip to Camp David to return to Washington, reports that Iran had activated its highest military readiness alert amid claims that the US is preparing to resume attacks, Houthi attacks on the Saudi capital Riyadh, and Pentagon Pizza Report activity suggestive of something afoot."
The US warned Saturday that hostilities between Saudi Arabia and Iran-backed Houthis could "escalate rapidly" after a missile attack targeted Riyadh for the first time since the Yemen conflict resumed.
Trump cut short a weekend at Camp David, a secluded presidential complex in rural Maryland, to return unexpectedly to the White House on Saturday.
The White House gave no explanation for the early return, which comes as a new threshold was crossed in the conflict between Saudi Arabia and the Houthis, who control a large part of Yemen and are fighting government forces backed by a coalition led by Riyadh.
Monday's local corporate calendar has full year results from Craneware and Getech.
The economic events calendar has the Chicago Fed US national activity index at 1330 BST.
By Eric Cunha, Alliance News news editor
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