9th Jun 2025 08:52
(Alliance News) - European stocks opened in a tepid fashion on Monday, despite more confident trade in Asia, as investors await trade talks between the US and China.
The FTSE 100 index opened down just 3.04 points at 8,834.87. The FTSE 250 was down 19.09 points, 0.1%, at 21,138.19, and the AIM All-Share was up 4.24 points, 0.6%, at 761.12.
The Cboe UK 100 was up slightly at 879.15, the Cboe UK 250 was up 0.1% at 18,634.23, and the Cboe Small Companies was up 0.2% at 16,934.02.
In European equities on Monday, the CAC 40 in Paris was down 0.2%, while the DAX 40 in Frankfurt was 0.6% lower.
Trade in Europe contrasted with what was seen in Asia at the start of the week, and New York on Friday.
In Tokyo on Monday, the Nikkei 225 added 0.9%. In China, the Shanghai Composite was up 0.4%, while the Hang Seng Index in Hong Kong traded 1.4% higher.
In New York on Friday, the Dow Jones Industrial Average added 1.1%, the S&P 500 shot up 1.0% and the Nasdaq Composite climbed 1.2%.
"Financial markets are leaning towards a glass-half-full view of the world right now," ING analysts commented.
"Trade talks in London today between the US and China should keep the risk environment calm."
Sterling rose to USD1.3565 early Monday, from USD1.3522 at the time of the London equities close on Friday. The euro climbed to USD1.1426 from USD1.1387. Against the yen, the dollar faded to JPY144.19 from JPY144.93.
After a round of talks in Geneva last month, the US and China will sit down at the negotiating table in London on Monday to attempt to preserve a fragile truce on trade, despite simmering tensions.
US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will lead the US delegation, President Donald Trump announced Friday.
Chinese Vice Premier He Lifeng – who led Beijing's negotiating team in Geneva – will also lead the team in London, the foreign ministry announced at the weekend.
"The meeting should go very well," Trump said in a post on his Truth Social platform.
ING analysts added: "Presumably, both sides would not be meeting if they felt they couldn't put a deal together."
The yield on the US 10-year Treasury was quoted at 4.49% early Monday UK time, stretching from 4.48% at the time of the London equities close on Friday. The yield on the US 30-year Treasury was quoted at 4.97%, widening from 4.94%.
Chinese consumer prices fell for the fourth straight month in May, data showed Monday, as the world's second-biggest economy struggles with sluggish spending and global trade turmoil.
China's consumer price index – a key measure of inflation – dropped 0.1% year-on-year in May, according to statistics published Monday by the National Bureau of Statistics.
The reading was in line with April's decline but slightly better than the 0.2% fall forecast in a Bloomberg survey of economists.
In London, M&G shares rose 1.6%, the best FTSE 100 performer in early trade. UBS raised the stock to 'buy' from 'neutral'.
WPP fell 2.0%. The advertising agency announced its CEO Mark Read will leave the post at the end of this year.
Dunelm lost 4.0% after RBC cut the home furnishings retailer to 'sector perform' from 'outperform'.
Alphawave shot up 22% to 182.10 pence per share, giving it a market capitalisation of GBP1.40 billion.
Alphawave agreed to a USD2.4 billion takeover from US semiconductor firm Qualcomm. The cash deal values the London-listed high-speed connectivity solutions firm's shares at USD2.48 each, around 183 pence.
This is a 96% premium to its undisturbed closing price of 94p at the end of March, before San Diego, California-based communications technology company Qualcomm said it was considering a bid for Alphawave.
"Qualcomm's acquisition of Alphawave represents a significant milestone for us and an opportunity for our business to join forces with a respected industry leader and drive value to our customers," said Alphawave Chief Executive Officer Tony Pialis.
"By combining our resources and expertise, we will be well-positioned to expand our product offerings, reach a broader customer base, and enhance our technological capabilities."
Also rising on the back of M&A news, Revolution Beauty climbed 19%. Revolution Beauty confirmed Sports Direct owner Frasers Group is one of a number of parties eyeing a bid for the company.
The London-based cosmetics retailer said Frasers Group is "one of a number of parties conducting due diligence" as part of the formal sale process announced in May.
Revolution Beauty said there can be no certainty that Frasers' interest will result in a firm offer for the company.
On Saturday, Sky News reported Frasers has approached Revolution Beauty about a potential offer for the company.
Frasers shares were flat.
A barrel of Brent faded to USD66.08 early Monday, from USD66.21 at the time of the London equities close on Friday. Gold bought USD3,324.44 an ounce, down from USD3,330.06.
By Eric Cunha, Alliance News news editor
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