London equities opened the week on a calmer note on Monday, shrugging off the panic that rattled markets last week. The FTSE 100 rose 0.3% to 9,453.65, the FTSE 250 added 0.7% at 21,944.03, and the AIM All-Share gained 0.8% to 792.33.
The shift comes after US President Donald Trump struck a softer tone toward China over the weekend, posting on Truth Social that the US “wants to help China, not hurt it,” while praising President Xi Jinping. The comments arrived just days after Trump had threatened “massive” tariffs on Chinese goods, particularly over rare earth minerals.
Despite the calmer opening, analysts caution that this is likely pre-negotiation posturing rather than easing of hostility. Traders have seen this before: every tariff threat leaves supply chain scars, and uncertainty can linger as both sides posture for domestic audiences ahead of possible November talks.
Friday’s moves had hit New York hard, with the Dow down 1.9%, the S&P 500 sliding 2.7%, and the Nasdaq dropping 3.6%. Futures on Monday point to a recovery, with US stocks set to open higher as investors digest Trump’s more conciliatory weekend message.
In London, miners led the early gains. Fresnillo climbed 5.8% and Endeavour Mining added 4.6% as safe-haven buying returned.
Lloyds Banking Group rose 1.3% despite setting aside an additional £800 million for motor finance mis-selling claims. The bank said the total £1.95 billion provision reflects its best estimate of potential FCA and Supreme Court-related costs.
IP Group jumped 7.6%, buoyed by potential royalty income from Pfizer’s $7.3 billion acquisition of Metsera, including rights to obesity drugs and milestone payments. Meanwhile, Strategic Minerals surged 23% after reporting “exceptional” drilling results at the Redmoor tungsten-tin-copper project in Cornwall. The company said the high tungsten grades position Redmoor among the highest-grade deposits globally.
While the market breathed easier at the open, investors remain cautious. Every move in the Trump-Xi saga can swing equities, and analysts warn that further headlines could again rattle markets before any real resolution.