Wall Street stocks hit new heights on Monday following a rally in Asian markets overnight, as signs of easing trade tensions between China and the US lifted the mood among investors. The FTSE 100 (^FTSE) and European stocks also climbed higher by the end of the session after a muted start.
It came as top officials from both countries hashed out a framework for a potential trade deal on Sunday, pushing the Kospi (^KS11) to a fresh record high and the Nikkei (^N225) above 50,000 points for the first time.
The trade truce is set to expire on 1 November, but hopes of an extension have boosted investor optimism.
China’s Ministry of Commerce said that the sides have reached an initial consensus on a range of issues including an extension of the tariff truce, fentanyl, agricultural trade, export controls and shipping levies.
In turn, US Treasury secretary Scott Bessent suggested China would defer its new rare-earth export controls for one year and make “substantial” purchases of US soybeans, while the US threat of 100% tariffs on China was “effectively off the table”.
Bessent signalled that the agreed “framework” should allow presidents Trump and Xi to have “a very productive meeting” when they meet on Thursday on the sidelines of the APEC summit.
The US president told reporters on Air Force One on the way to Japan from Malaysia: “I’ve got a lot of respect for president Xi and I think we’re going to come away with a deal. We have China coming and it’s going to be very interesting.
“I think we’re going to have a deal with China. We’re going to meet them later in China and we’re going to meet them in the US, either Washington or Mar-a-Lago.”
Since he arrived in Asia at the weekend, Trump has signed trade framework pacts with Malaysia, Thailand, Vietnam and Cambodia. The countries will allow preferential access for US goods in return for tariff exemptions on some of their exports, though many of the exact details are still to be finalised.
However, Trump announced a 10% additional tariff on Canada amid a spat over an anti-tariff ad released by the government of Ontario.
Wall Street’s fear gauge, the Vix, hit a one-month low after Trump’s revival of the trade war had sent the volatility index to its highest level since the April rollout of his “liberation day” tariffs.
Read more: Gold prices extend drop as easing US-China tensions curb haven demand
Meanwhile, markets are all but certain the Fed will cut rates on Wednesday when policymakers wrap up their two-day meeting. Cooler-than-expected inflation data — the US shutdown-delayed Consumer Price Index report — bolstered the case for easing on Friday.
In the UK, British retailers reported another fall in sales in October, blaming the late autumn budget for uncertainty around tax hikes.
According to the latest CBI business survey, retail sales volumes rose only slightly this month, compared to a year ago, but remained deep in negative territory at -27, versus -29 in September. Its measure of expected sales for the month ahead slipped to -39 from -36.
London’s benchmark index (^FTSE) was hovering over the flatline by the end of the session after spending most of the day muted
Germany’s DAX (^GDAXI) rose around 0.3% and the CAC (^FCHI) in Paris was 0.2% in the green.
The pan-European STOXX 600 (^STOXX) also gained 0.2% on the day
The Dow Jones Industrial Average (^DJI) moved roughly 0.6% higher by the time of the European close, while the S&P 500 (^GSPC) jumped 0.9%. The tech-heavy Nasdaq Composite (^IXIC) led gains, up 1.5%.
The pound was 0.1% higher against the US dollar (GBPUSD=X) at 1.3332 ahead of an expected interest rate cut by the US central bank on Wednesday.
Key companies reporting this week: Microsoft, Alphabet, Meta, Apple, Amazon and Shell
Follow along for live updates throughout the day:
LIVE 20 updates
Well that’s all from us for today, thanks for following along. Be sure to join us again tomorrow, when we’ll be back for more of the latest market news, and updates of what’s happening across the global economy.
Our US live blog will continue into the evening as Qualcomm (QCOM) stock heads higher after announcing new chips and servers to rival those of Nvidia (NVDA) and AMD (AMD).
Until tomorrow, have a good evening all!
Britain’s defence industry has struck an £8bn deal to make 20 Typhoon fighter jets for the Turkish military.
The agreement is the first new orders of UK Typhoons since 2017, with 37% of each aircraft manufactured in the UK. British factories run by BAE Systems (BA.L), Rolls-Royce (RR.L) and Leonardo will help produce the jets.
Work will also take place in Germany, Italy, and Spain, which are part of the Eurofighter partnership.
On the back of the news, prime minister sir Keir Starmer said:
Negotiators for the US and Brazil are preparing to meet on Monday to resume trade talks after presidents Donald Trump and Luiz Inacio Lula da Silva met on Sunday and repaired ties, Bloomberg reported.
Spain’s stock market has hit a record high for the first time since the global financial crisis thanks to a resurgence in the banking sector.
The Ibex 35 (^IBEX), the benchmark index in Madrid, rose as much as 0.8% to reach over 15,990 points, surpassing a closing high last reached in 2007.
Spanish stocks are up around 40% this year, with today’s gains led by Mapfre (MAP.MC), Banco Santander (SAN.MC) and BBVA (BBVA.MC), which have benefitted from their exposure to Argentina.
It comes as president Javier Milei’s party won midterm elections by an unexpectedly wide margin on Sunday, boding well for his economic reforms.
American investment firm KKR (KKR) has made a surprise move to buy Costa Coffee, one of Britain’s biggest high street hospitality groups.
According to Sky News, KKR is among a small number of parties in talks with The Coca-Cola Company (KO) and its advisers at Lazard, the investment bank, about an agreement.
KKR’s involvement in the process is unexpected because it had appeared to drop its interest in a potential bid in late August, but one source said on Monday that its interest remained fluid, and it was possible that it could still decide against a binding offer or choose to team up with another party.
It joins rival bidders including Bain Capital, the part-owner of bakery chain Gail’s, and TDR Capital, whose portfolio includes Asda.
Sources said that management presentations with potential bidders were due to get underway this week.
Coca-Cola intends to retain ownership of Costa’s ready-to-drink portfolio, which is also sold through other retailers.
The nights are drawing in. We’re down to around 10 hours of daylight each day, and things are only going to get worse. By the time we’re stumbling around in the dark in mid-December, we’ll have fewer than eight. And it doesn’t just affect your health and your mood, shorter days can take a toll on your finances too.
Energy bills rise
Once the sun goes down, the cold really sets in, and unless you can manage 14 hours a day in bed, the heating needs to go on.
To add insult to injury, the energy price cap has risen, so every minute of heating will cost you more.
It’s worth using a price comparison website to see if you could be paying less in your area. There’s a decent chance you could get a cheaper fixed-rate deal.
Alongside that, you can consider energy saving steps like draught-proofing the house, switching to energy-efficient lighting, and running the washing machine on a cold setting – and only when its full.
TSB and NatWest (NWG.L) have announced they are cutting rates ahead of the autumn budget next month with brokers saying the move is “welcome relief for borrowers”.
There are rate cuts of up to 0.2% from TSB, and up to 0.21% from NatWest, with the most generous reductions for the shorter-term deals, such as a two-year fixed.
With NatWest and TSB joining the likes of Barclays and Santander (BNC.L) last week with rate reductions, experts say it’s finally some positive news for those moving home as well as those looking for new mortgage deals.
Barclays (BARC.L) announced several fixed-rate cuts for those looking to move home or buy their first home, by up to 0.1% – and HSBC (HSBA.L) and Santander also revealed a cut to its rates.
Brokers hailed the news and urged borrowers to lock down deals ahead of the Budget next month.
Justin Moy, managing director at Chelmsford-based EHF Mortgages, said:
Meanwhile, Vijay Rabadiya, founder & director at The Mortgage Vine, said he had seen a “turning point in sentiment”.
The pound rose on Monday as the Federal Reserve and European Central Bank prepared to announce their next interest rate decisions.
Sterling was up 0.3% against the dollar to around $1.335 at the time of writing ahead of an expected interest rate cut by the US central bank on Wednesday.
It had previously been on a five-day losing streak against the greenback after recent lower-than-expected inflation figures raised the chances of the Bank of England lowering interest rates again before the end of the year.
The pound was also up 0.1% against the euro at €1.146.
Business confidence in Germany rose unexpectedly in October, according to the Munich-based Ifo institute. The reading increased to 88.4 points during the month, up from 87.7 points in September. However this is still below August’s level.
The improvement in Europe’s largest economy was driven by optimistic expectations for the coming months, rising to the highest level in more than three years. The current business situation was assessed as slightly worse, for the third month in a row.
Companies overall remain hopeful that the economy will pick up in the coming year.
Expectations in the manufacturing sector improved, as the decline in new orders came to a halt, although companies were less satisfied with current business.
In the service sector, confidence improved significantly, led by tourism and IT services. Meanwhile, trade optimism also rose, while companies were slightly more downbeat about the current situation.
However, in construction, expectations were more pessimistic, amid a lack of orders.
Carsten Brzeski, global head of macro at ING, said:
He cautioned that the confidence improvement is “not a turning point” for the German economy.
Barclays (BARC.L) shares were in focus on Monday morning after Bloomberg reported that the lender is planning to re-enter Saudi Arabia 11 years after pulling out of the country.
Bloomberg reported that Barclays is in the process of securing a license to conduct investment banking activities in Saudi Arabia and plans to open an office in Riyadh in 2026.
Shares in Barclays were up 1.4% on Monday morning, extending gains over the past week, with the stock rising following the release of the bank’s third quarter results.
In its results, Barclays unveiled a £500m ($666m) share buyback and said it planned to move to quarterly buyback announcements. The bank also raised its guidance for the year, despite increasing the amount it is setting aside to cover costs relating to the car finance scandal to £325m.
Here are the FTSE 100 risers and fallers this morning:
Donald Trump has said that a decision on the next US Federal Reserve chairman might be made before the end of the year.
It comes as the US president has repeatedly attacked current chair Jerome Powell for being “too late” to cut interest rates. He is expected to appoint a chair more inclined to lower borrowing costs.
“Maybe by the end of the year, we’ll make a decision on the Fed,” Trump told reporters on Air Force One during his visit to Southeast Asia.
Meanwhile, Treasury secretary Scott Bessent added: “We’re going to do a second round, and we hope to present a good slate to the president right after Thanksgiving.”
Powell’s term will come to an end in May.
Gold (GC=F) prices dropped in early European trading after experiencing their first weekly decline since mid-August, as growing optimism surrounding a potential US-China trade deal reduced the demand for safe-haven assets.
Gold futures dropped 1.5% to $4,078.10 per ounce, while spot gold retreated 1.2% to $4,066 an ounce, at the time of writing.
It came as the US and China signalled they were nearing the completion of a comprehensive trade agreement, with president Donald Trump currently on a diplomatic tour of Asia. Should an agreement be reached, it could ease some of the economic risks and geopolitical tensions that have previously supported the price of gold.
“This potential trade deal between the US and China really came out of the blue and has been a positive surprise for the markets broadly,” said Kyle Rodda, an analyst at Capital.com. “Obviously, the flip side of that is the developments have been negative for gold.”
Rodda added that the market’s mood had shifted, with much of the tension that had previously driven gold prices higher now dissipating. “A lot of the heat has come out of the market now, and sentiment is neutralising.”
Despite the recent pullback, gold’s long-term outlook remains underpinned by expectations of loose fiscal and monetary policies. “Should that remain the case, gold’s uptrend should hold,” Rodda concluded.
A sharp rally that saw gold surge to a record high just above $4,380 an ounce last Monday has since reversed amid signs that the metal had become overbought. Despite this, bullion remains up 55% year-to-date.
Petrofac has filed for administration, putting 2,000 jobs in Scotland at risk. The oil and energy firm said its holding company has applied to the High Court of England and Wales to appoint administrators
It added that its North Sea operations will still continue to trade, and that it is exploring options for alternative restructuring and M&A solutions with its key creditors.
According to Sky News, there are hopes that a buyer for its North Sea business can be found quickly, which could happen in the coming days.
Its creditors include a group of noteholders, who are supporting the company with forbearance arrangements while alternative options are explored. Petrofac said it retains the support of its lenders.
Marks and Spencer (MKS.L) has ended a contract with Tata Consultancy Services to run its IT service desk just months after the Indian provider was forced to conduct an internal investigation over being the origin of a high-profile cyber attack on the UK retailer.
The FT has the details:
The Mumbai-based group, which has provided services to M&S for more than a decade and is the largest arm of the conglomerate Tata Sons, saw its contract with the UK group end in July, according to the retailer.
M&S in April was hit by a cyber attack forcing it to suspend online orders and leave some shelves bare. TCS exonerated itself from being the source of the breach after an internal investigation in June.
In July, Archie Norman, the M&S chair, told MPs that hackers had used “sophisticated impersonation” to gain entry “involving a third party.” The attack is expected to lower operating profits by up to £300m this year.
The renewal process of TCS’s contract with M&S began in January, according to a person familiar with the matter, who confirmed that the retailer had decided to opt for another service provider after the process had completed. The termination of the contract was first reported by the Telegraph newspaper.
M&S declined to comment on when the decision was made, or if there was a link to the cyber attack. The retailer continues to use the Indian group for other services.
TCS said the service desk contract termination by M&S and the cyber attack were “clearly unrelated”.
The retailer had followed a regular competitive procurement process initiated in January, and chose another service provider “much prior to the cyber incident in April”, it said in a statement.
Investors face a busy week ahead this week, including rate decisions by four of the G7 central banks. The US Federal Reserve and the Bank of Canada (BoC) is on Wednesday, followed by the Bank of Japan (BoJ) and the European Central Bank (ECB) on Thursday.
A packed earnings calendar will see reports from five of the Mag-7, together representing a quarter of the S&P 500 market cap.
Microsoft (MSFT), Alphabet (GOOGL, GOOG) and Meta (META) are due to report on Wednesday, followed by Apple (AAPL) and Amazon (AMZN) on Thursday.
In addition to US big tech, major companies that are due to report include oil major Shell (SHEL.L), which has already said it expects much stronger trading in its gas division in the third quarter.
Despite 7% more homes for sale than a year ago, regional performance is mixed.
Sales are up in Scotland (3%), Yorkshire and the Humber (4%), the South West (1%) and the West Midlands (1%). In contrast, southern England and Wales are seeing sharper declines, with sales falling 9% in Wales, 8% in the South East, 6% in the East of England and 5% in London.
House price growth has slowed over 2025, currently standing at 1.3%, broadly unchanged from a year ago. The average UK home is now worth £270,000, a £3,600 increase over the last 12 months. The slowdown in activity is most pronounced in the higher price bands, particularly for homes above £500,000, where demand and listings have fallen sharply.
Speculation around potential property tax reforms, including changes to council tax, replacing stamp duty with an annual property tax and introducing capital gains tax on homes worth more than £1.5 million, has further dampened sentiment in southern markets.
This has contributed to a regional divide in price growth. Values across southern England have effectively stalled, while house prices continue to rise by more than 2% in Scotland, Wales and the northern regions of England, maintaining a similar pace to last year.
The average advertised rent for homes outside London rose again in the third quarter of 2025 to a new record of £1,385 per calendar month, according to data from Rightmove (RMV.L).
Average rents outside the capital are now 3.1% higher than a year ago, marking the third consecutive quarterly record this year.
Average advertised rents in London also reached a new high of £2,736, though the pace of growth in the capital has slowed to just 1.6% annually, the lowest figure since the second quarter of 2020.
The total number of homes available to rent continues to edge closer to pre-pandemic levels, but the flow of new listings has slowed. The number of available rental homes is now 9% higher than it was a year ago, although it remains 23% below the same period in 2019. This marks the closest the market has been to pre-pandemic supply levels in four years.
However, the number of new rental listings coming to market is only 1% higher than a year ago, the lowest figure recorded in 2025. Tenant demand has also cooled and is 14% lower than at this point last year.
Analysts say the slower pace of new rental supply reflects growing caution among landlords amid changes to taxes and regulations.
An increase in stamp duty for rental home purchases introduced in October last year, alongside rumours of a potential national insurance tax for landlords in the upcoming autumn budget, has added uncertainty to the market. The forthcoming Renters’ Rights Bill is also influencing decisions.
Affordability remains stretched for both tenants and landlords. Despite average earnings rising by 5% compared with last year, outpacing rent increases, the cost of renting still consumes 44% of the average wage, up from 40% five years ago. For renters saving for a first home, a 20% deposit has risen by just over £5,000 in five years, from £40,326 to £45,374.
Daniel Fisher, head of lettings at John D Wood & Co, said:
Asian stocks surged overnight amid signs of easing trade tensions between China and the US after top officials hatched the framework of a trade deal on Sunday.
The Nikkei (^N225) rose 2.5% on the day in Japan, topping 50,000 for the first time, while the Hang Seng (^HSI) climbed 1% in Hong Kong.
The Shanghai Composite (000001.SS) was 1.2% up by the end of the session and in South Korea, the Kospi (^KS11) added 2.6% on the day, hitting a fresh record high.
The current trade truce is set to expire on 1 November, but hopes of an extension lifted stocks across Asia.
China’s Ministry of Commerce said that the sides reached an initial consensus on a range of issues including an extension of the tariff truce, fentanyl, agricultural trade, export controls and shipping levies.
In turn, US Treasury Secretary Bessent suggested that China would defer its new rare-earth export controls for one year and make “substantial” purchases of US soybeans, while the US threat of 100% tariffs on China was “effectively off the table”.
Bessent signalled that the agreed “framework” should allow Presidents Trump and Xi to have “a very productive meeting” when they meet on Thursday on the sidelines of the APEC summit.
The US president told reporters on Air Force One on the way to Japan from Malaysia:
Across the pond on Wall Street, US stocks hit records on Friday after an update on inflation came in less painful than feared.
The S&P 500 (^GSPC) rose 0.8% topping its prior all-time high set earlier this month. The tech-heavy Nasdaq (^IXIC) was 1.1% higher. The Dow Jones (^DJI) also rallied 1% to a new record.
US equity futures are advancing strongly this morning, adding to Friday’s record close.
50,512.32
+1,212.67
+(2.46%)
At close: 15:45:02 GMT+9
Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what’s moving markets and happening across the global economy.
To the day ahead we have data including US September durable goods orders, October Dallas Fed manufacturing activity, China September industrial profits, Germany October Ifo survey, Eurozone September M3. In terms of central banks, we have the ECB September consumer expectations survey coming up.
Here’s a snapshot of what’s on the agenda:
7am: Trading updates: Greatland Gold
9am: Germany business climate for October
11am: UK CBI Distributive Trades for October
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