FTSE 100 at Record High as US-China Deal Hopes Lift Markets

The FTSE 100 closed at an all-time high of 9,645.62 on Friday, boosted by strong gains in financial stocks such as NatWest, which rose 4.9% after upgrading its 2025 targets. In the US, the S&P 500 and Nasdaq also ended at record levels after Alphabet gained 2.7% on news of an expanded AI chip deal with Anthropic and Ford surged 12.2% following stronger-than-expected quarterly profits. Early on Monday, Asian markets jumped around 2% and Nasdaq futures climbed 1% as investors reacted to signs that Washington and Beijing are close to a limited trade deal that could ease tariffs and export restrictions.

Equities

Britain’s FTSE 100 closed 0.7% higher at 9,645.62 on Friday, reaching a record high after a week of strong gains driven by financial stocks and encouraging corporate results. The mid-cap FTSE 250 rose 0.75% to 22,529.02, its highest level since early 2022. Both indexes recorded their biggest weekly rises in over six months, helped by signs of cooling US inflation and optimism over upcoming central bank rate cuts.

NatWest climbed 4.9% to its highest level since 2008 after posting a 30% increase in third-quarter profit and upgrading its 2025 performance targets. The broader UK banking sector gained 1.4%, reflecting the upbeat mood. London Stock Exchange Group rose 4.8% after several brokerages lifted their price targets following strong quarterly results. WH Smith added 4.2% after Peel Hunt upgraded the travel retailer to “buy” from “hold”. Data showing a fourth consecutive monthly rise in British retail sales, led by technology and jewellery, lifted the retail sector 1.4%.

In the United States, Wall Street also finished the week strongly. The Dow Jones Industrial Average rose 1.01% to 47,207.12, the S&P 500 gained 0.79% to 6,791.69, and the Nasdaq Composite advanced 1.15% to 23,204.87. The gains came after softer-than-expected US inflation data and a string of strong corporate earnings reports.

Alphabet climbed 2.7% on Friday after Anthropic expanded its deal to use up to one million of Google’s AI chips to train its Claude chatbot. Ford surged 12.2% after reporting third-quarter profits above expectations, while General Dynamics rose 2.7% after beating analyst forecasts. Coinbase jumped 9.8% following an upgrade from JPMorgan to “overweight” from “neutral”. In contrast, Deckers Outdoor fell 15.2% after forecasting full-year sales below Wall Street estimates, and Alaska Air dropped 6.1% after cutting its annual guidance.

Forex & Commodities

The US dollar strengthened, rising to a two-week high of ¥153.03 after briefly touching ¥153.26, as traders positioned ahead of several major central bank meetings and renewed optimism over US-China trade talks. The euro held steady at $1.163 while gaining against the yen to ¥178.13, a record high. Sterling moved slightly higher to $1.3327, while the Australian dollar also firmed at $0.6541 following signs of progress in trade discussions between Washington and Beijing.

The Federal Reserve is expected to lower its benchmark rate from the current 4–4.25% range by a quarter point when it meets on Wednesday, following softer inflation data on Friday. Markets have already priced in a further cut in December, and attention will turn to Chair Jerome Powell’s comments on the outlook for monetary policy. In Japan, the Bank of Japan is due to meet on Tuesday and Wednesday, with policymakers likely to keep the policy rate at 0.5%.

Gold prices fell early on Monday as the stronger dollar and easing trade tensions reduced demand for the metal. Spot gold was last down at $4,077 per ounce, while silver slipped to $48.31. Platinum rose to $1,616 per ounce and palladium edged up to $1,435. The SPDR Gold Trust reported that its holdings declined to 1,046.93 metric tonnes on Friday.

Oil prices climbed on Monday as sentiment improved following the outline of a US-China trade framework. Brent crude rose to $66.41 a barrel and US West Texas Intermediate advanced to $61.94, extending gains made last week after new US and EU sanctions on Russian energy firms.