The FTSE 100 rose only 0.2% on Monday, trailing gains seen in the US, where optimism over a potential US–China trade deal drove a strong rally on Wall Street.
London’s blue-chip index and the FTSE 250 both added 0.2%, compared with rises of 0.9% on the S&P 500 and 1.5% on the Nasdaq Composite.
The FTSE 100 had faced early pressure from HSBC, after the bank announced it would take a $1.1bn (£826m) provision following a setback in a long-running legal case linked to Bernie Madoff’s Ponzi scheme. HSBC shares had fallen as much as 2.4% before recovering to trade 0.2% lower by the afternoon.
The FTSE 100 hit record highs last week, while the FTSE 250 climbed to its strongest level in nearly four years, supported by softer UK inflation and improved public borrowing figures.
Wall Street Hits New Record Highs on US–China Trade Deal Hopes
US stocks surged to new record highs on Monday as investors grew more confident that the US and China are moving towards an agreement to pause planned tariff escalations and potential rare earths export controls.
Donald Trump and Xi Jinping are expected to meet on Thursday to discuss the framework of a deal that could ease tensions between the world’s two largest economies.
Market volatility eased, with the VIX falling to a one-month low, reversing the spike triggered when Trump reignited the trade dispute earlier this month.
The Dow Jones Industrial Average rose 238.57 points (0.5%) to 47,445.69, while the S&P 500 gained 58.69 points (0.9%) to 6,850.38. The Nasdaq Composite climbed 324.40 points (1.4%) to 23,529.27.
