London’s FTSE 100 Rises Firmly as Europe Pauses Ahead of Fed and Trump-Xi Meeting
UK equities climb ahead of the U.S. Federal Reserve rate decision while traders digest President Trump’s tariff signals ahead of summit with China’s Xi Jinping
London’s benchmark FTSE 100 index extended gains on Wednesday while European stocks remained largely flat as investors awaited the U.S. Federal Reserve’s imminent decision and weighed the evolving U.S.–China trade relationship.
The U.K. index rose by around 0.9 percent early in the session, reflecting optimism over a prospective Fed interest-rate cut and positive commentary from U.S. President Donald Trump.
Speaking on Air Force One en route to South Korea, President Trump announced his intention to reduce the 20 percent levy on Chinese goods tied to fentanyl-related precursor chemicals, saying: “I expect to be lowering that because I believe they can help us with the fentanyl situation.
We have to get rid of it.” He added: “I think we’re going to have a deal ...
a good deal for both.”
His remarks come ahead of his face-to-face meeting with Chinese President Xi Jinping on Thursday, and follow reports that the tariff might be cut to as low as 10 percent.
At the same time, markets are positioned for a likely quarter-point cut in the federal funds rate to around 4 percent by the Federal Reserve, with close attention on the press conference of Chair Jerome Powell for guidance on future policy.
Across continental Europe the reaction was more subdued.
Germany’s DAX index hovered up about 0.05 percent, France’s CAC 40 was similarly flat, and the pan-European STOXX 600 rose approximately 0.3 percent.
Markets appear to be holding back ahead of the key central-bank decision and Trump’s meeting in Busan with Xi.
The pound weakened by about 0.5 percent against the U.S. dollar, trading near $1.3206, as the Office for Budget Responsibility signalled a likely downgrade in the U.K.’s productivity-growth assumptions ahead of the upcoming Budget.
In London, chip-maker NVIDIAShares rose sharply—on pace to exceed a $5 trillion market-capitalisation milestone—after Trump praised its AI-processor plans and flagged discussions with Xi at the summit.
With the Fed decision now imminent and the Trump-China summit looming, traders are balancing hopes for easing monetary policy with the prospect of renewed cooperation—albeit uncertain—between the world’s two largest economies.
The next few hours may determine whether the positive tone on equities holds or gives way to caution.
The U.K. index rose by around 0.9 percent early in the session, reflecting optimism over a prospective Fed interest-rate cut and positive commentary from U.S. President Donald Trump.
Speaking on Air Force One en route to South Korea, President Trump announced his intention to reduce the 20 percent levy on Chinese goods tied to fentanyl-related precursor chemicals, saying: “I expect to be lowering that because I believe they can help us with the fentanyl situation.
We have to get rid of it.” He added: “I think we’re going to have a deal ...
a good deal for both.”
His remarks come ahead of his face-to-face meeting with Chinese President Xi Jinping on Thursday, and follow reports that the tariff might be cut to as low as 10 percent.
At the same time, markets are positioned for a likely quarter-point cut in the federal funds rate to around 4 percent by the Federal Reserve, with close attention on the press conference of Chair Jerome Powell for guidance on future policy.
Across continental Europe the reaction was more subdued.
Germany’s DAX index hovered up about 0.05 percent, France’s CAC 40 was similarly flat, and the pan-European STOXX 600 rose approximately 0.3 percent.
Markets appear to be holding back ahead of the key central-bank decision and Trump’s meeting in Busan with Xi.
The pound weakened by about 0.5 percent against the U.S. dollar, trading near $1.3206, as the Office for Budget Responsibility signalled a likely downgrade in the U.K.’s productivity-growth assumptions ahead of the upcoming Budget.
In London, chip-maker NVIDIAShares rose sharply—on pace to exceed a $5 trillion market-capitalisation milestone—after Trump praised its AI-processor plans and flagged discussions with Xi at the summit.
With the Fed decision now imminent and the Trump-China summit looming, traders are balancing hopes for easing monetary policy with the prospect of renewed cooperation—albeit uncertain—between the world’s two largest economies.
The next few hours may determine whether the positive tone on equities holds or gives way to caution.
