23rd Jul 2025 09:02
(Alliance News) - European blue-chips opened higher on Wednesday following the agreement of a US-Japan trade deal, and as China too looks to "strengthen" its relationship with the US.
The FTSE 100 index opened up 40.07 points, 0.4%, at 9,063.88. The FTSE 250 was up 84.07 points, 0.4%, at 22,018.33, and the AIM All-Share was up 2.56 points, 0.3%, at 772.70.
The Cboe UK 100 was up 0.5% at 904.06, the Cboe UK 250 was up 0.4% at 19,342.97, and the Cboe Small Companies was down marginally at 17,681.60.
In European equities on Wednesday, the CAC 40 in Paris improved 1.0%, while the DAX 40 in Frankfurt gained 0.8%.
The pound was quoted higher at USD1.3545 early on Wednesday in London, compared to USD1.3508 at the equities close on Tuesday. The euro stood up at USD1.1742, against USD1.1735. Against the yen, the dollar was trading higher at JPY146.72 compared to JPY146.49.
Nearly four-fifths of UK mortgage brokers are noticing a rise in the amount of lending agreed for their clients, according to a survey.
HSBC UK's mortgage broker barometer, which gathered sentiment from more than 1,100 mortgage brokers in July 2025, found 78% had seen an increase in the amount of lending agreed.
Many lenders have recently made changes allowing some homeowners to borrow more, following clarification from the Financial Conduct Authority.
Following changes to its own stress rates, HSBC UK estimated the average mortgage offer for first-time buyers will be GBP39,000 higher than would previously be offered. Around 63% of brokers surveyed expect mortgage applications to increase over the next six months.
Meanwhile, demand to invest in the UK's retail property sector picked up in the second quarter, with interest rate cuts aiding investment, Rightmove said on Wednesday.
The property portal's latest insights revealed that demand to invest in the retail property sector is up 35% in the second quarter versus a year ago. The company said this was measured through enquiries to commercial agents regarding listings on Rightmove.
High-street retail investment demand is up 56%, said Rightmove, with this figure at its highest level since 2021. This demand makes up a significant proportion of the overall retail sector.
This change marks a notable shift for retail investment, it added, with demand having been down 15% last year when compared to the year prior.
According to Rightmove, interest rate cuts are helping to drive this "bounce back" which is occurring across both retail and commercial investment.
Fresnillo was the biggest loser on the FTSE 100 at London's market open, down 4.7%.
The Mexico-focused silver and gold miner said total silver production in the second quarter that ended June 30 rose 1.0% to 12.5 million ounces from 12.4 million ounces in the first quarter, but declined 15% on-year from 14.7 million ounces.
Gold production edged up 1.0% on-quarter to 157,735 ounces from 156,105 ounces, and increased 21% from 130,025 ounces the year before.
Lead production fell 10% on-year to 15,152 tonnes from 16,906 tonnes, while zinc production was also down against the prior year, down 2.9% to 28,403 tonnes from 29,240.
CyanConnode sank 7.7%.
The Cambridge, England-based developer of narrowband radio frequency mesh networks posted a pretax loss of GBP3.7 million for the year to March 31, narrowed from GBP4.2 million the year before.
The was largely due to a one-off GBP791,000 intangible assets impairment in financial 2024. Revenue declined 24% to GBP14.2 million from GBP18.7 million due to election-related uncertainty in India and short-term consumer resistance to smart metering, which the firm does not expect to recur.
"In light of the inherent challenges in forecasting revenue timing in large infrastructure projects, the board has adopted a more conservative approach to its forecasting. To enhance transparency and help stakeholders track operational progress, going forward CyanConnode intends to provide quarterly updates on business progress," said Chief Executive Officer John Cronin.
At the other end, Shield Therapeutics jumped 23%.
The Newcastle, England-based commercial-stage pharmaceutical company reported net revenue of USD12.8 million in the second quarter to June 30 for Accrufer, the firm's oral therapy for adults with iron deficiency with or without anemia.
This was doubled from first-quarter revenue of USD6.4 million for the drug, and 86% higher than USD6.9 million the year before.
Shield Therapeutics added that it remained on track to achieve its prior guidance of turning cash flow positive by the end of 2025.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average rising 0.4%, the S&P 500 up 0.1% and the Nasdaq Composite gaining 0.4%.
US President Donald Trump said the US has agreed to a major trade deal with Japan that includes a 15% tariff on its exports.
Trump explained that under the deal: "Japan will invest, at my direction, USD550 Billion Dollars into the US, which will receive 90% of the Profits."
Japanese Prime Minister Shigeru Ishiba said that he needed to examine the deal before commenting, and later Tokyo's trade envoy to the US confirmed that the deal does not include defence spending or steel and aluminium.
The breakthrough makes Japan one of five countries to have signed an agreement – along with Britain, Vietnam, Indonesia and the Philippines – after Trump promised in April he would get "90 deals in 90 days".
Separately, local media said Wednesday that Ishiba plans to soon announce his resignation as Japanese prime minister, after Sunday's election left his coalition without a majority in the upper house of parliament. The reports said Ishiba had conveyed his intention to step down to those close to him.
The yield on the US 10-year Treasury was quoted at 4.38%, widening from 4.34%. The yield on the US 30-year Treasury was quoted at 4.95%, stretching from 4.91%.
China said on Wednesday it was seeking to "strengthen cooperation" with the US at next week's trade talks in Stockholm.
"On the basis of equality, respect and mutual benefit... we will enhance consensus, reduce misunderstandings, strengthen cooperation and promote the stable, healthy and sustainable development of Sino-US relations," foreign ministry spokesman Guo Jiakun said.
In Asia on Wednesday, the Nikkei 225 index in Tokyo advanced 3.5%. In China, the Shanghai Composite was slightly higher, while the Hang Seng index in Hong Kong rose 1.3%. The S&P/ASX 200 in Sydney closed up 0.7%.
Brent oil was quoted higher at USD68.76 a barrel early in London on Wednesday from USD68.30 late Tuesday.
Gold was quoted broadly flat at USD3,426.72 an ounce against USD3,426.29.
"Since bottoming out around USD3,245/oz, gold has experienced an impressive rally, supported by several long-term structural factors. Chief among them are escalating geopolitical risks, expectations of a shift in monetary policy, and sustained accumulation by central banks. These three pillars are converging to create a favourable environment for gold to continue asserting its role as a safe-haven and store of value asset," commented XS.com analyst Linh Tran.
"Geopolitical risks remain a key catalyst driving defensive demand in global markets. The situation in Eastern Europe remains at an impasse, with Russia and Ukraine unable to establish a viable diplomatic roadmap toward lasting peace. The prolonged conflict not only puts pressure on Europe's energy security but also triggers widespread instability across global supply chains - factors that historically prompt investors to increase their exposure to gold."
Still to come on Wednesday's economic calendar, eurozone consumer confidence figures and US existing home sales data.
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
CyanconnodeShield TheraFresnillo