London stocks opened higher on Wednesday as a breakthrough US-Japan trade deal lifted global sentiment and China signalled its intention to strengthen ties with Washington.
The FTSE 100 rose 0.4% to 9,063.88 in early trade, while the FTSE 250 also climbed 0.4% to 22,018.33. The AIM All-Share added 0.3% to 772.70.
US President Donald Trump said the United States had reached a “major” agreement with Japan, boasting a 15% tariff on Japanese exports and a $550 billion investment pledge from Tokyo, with America reportedly set to receive 90% of the profits. Japanese Prime Minister Shigeru Ishiba did not immediately confirm the terms, while Japan’s trade envoy clarified the deal excludes defence and steel.
Ishiba is reportedly preparing to resign after losing his coalition’s upper house majority in Sunday’s election.
Meanwhile, China said it aims to “strengthen cooperation” with the US at next week’s trade talks in Stockholm, promising to build consensus and promote stable, long-term relations.
Asian markets responded positively, with Tokyo’s Nikkei 225 surging 3.5%, Hong Kong’s Hang Seng up 1.3%, and Sydney’s ASX 200 gaining 0.7%.
Back in London, miner Fresnillo was the FTSE 100’s biggest early faller, down 4.7%. While second-quarter silver and gold production edged up slightly on the quarter, silver output fell 15% on the year. Lead and zinc production also declined versus 2023 levels.
CyanConnode dropped 7.7% after reporting a narrowed annual loss of £3.7 million on revenue down 24% to £14.2 million. The fall was blamed on election-related uncertainty in India and short-term consumer hesitation on smart meters. The firm will now provide quarterly updates to improve transparency.
Shield Therapeutics surged 23% after its Accrufer iron deficiency drug doubled revenue to $12.8 million in the second quarter. The company reaffirmed guidance to reach cash flow breakeven by the end of 2025.