FTSE 100 gains amid easing US-China trade tensions and gold rally

The UK stock index rises on positive trade sentiment, a surge in gold, but UK housing market remains sluggish amid potential tax reforms and company setbacks like B&M’s profit warning.

The FTSE 100 started the week positively, closing higher on Monday amid growing hopes that a trade deal between the United States and China could soon be reached. The index rose by 49 points, or 0.5%, to close at 9,403.57, while its mid-cap counterpart, the FTSE 250, gained 85.52 points, or 0.4%, to 21,868.48. However, the AIM All-Share index declined slightly, losing 1.59 points or 0.2% to 771.06. This upward momentum was mirrored in other European markets where Paris’s CAC 40 rose 0.4% and Frankfurt’s DAX 40 surged by 1.8%. Meanwhile, US markets also displayed strength with the Dow Jones Industrial Average up by 0.8%, the S&P 500 increasing 1.0%, and the Nasdaq Composite jumping 1.4%.

The improving market sentiment is largely credited to easing tensions in the US-China trade dispute. Joshua Mahony, chief market analyst at Scope Markets, noted that fears around this trade conflict have diminished following a softer tone from the US administration. He added that relations with Beijing had “de-escalated” enough to anticipate a meeting between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng later in the week. This development bolstered confidence that both nations are motivated to work towards a trade agreement in the coming weeks. Correspondingly, the pound strengthened against the dollar, moving from 1.3398 to 1.3424, while the euro was steady at around 1.1662 dollars.

Gold prices continued their upward trajectory, trading at approximately $4,345 an ounce on Monday, up from $4,242 the previous Friday. Bank of America has highlighted that despite some risks of a near-term correction, gold could potentially rise to $5,000 per ounce by 2026, underpinning the precious metal’s appeal as a safe haven amid ongoing geopolitical and market uncertainties.

Despite the generally positive market atmosphere, the UK housing market remained a weak spot. Data from Rightmove revealed that average asking prices for UK homes increased by just 0.3% in October, well below the typical 10-year average seasonal rise of 1.1%. This sluggishness is attributed to uncertainty surrounding the upcoming UK budget, particularly speculation about potential property tax reforms, which appears to be causing prospective buyers to adopt a wait-and-see approach. This cautious sentiment hit housebuilders listed on the London Stock Exchange hard, with Berkeley Group, Persimmon, and Barratt Redrow seeing declines between 0.9% and 1.8%.

Further compounding market jitters was the sharp fall in shares of B&M European Retail, which plummeted 22% after the company announced a profit warning precipitated by an accounting error. The retailer also revealed that its chief financial officer, Mike Schmidt, would step down, a move described by analysts as confirmatory of governance concerns. This marks yet another setback for B&M following its relegation from the FTSE 100 to the FTSE 250 at the beginning of 2024 and the loss of its previous chief executive earlier in the year.

Across the FTSE 100, gains were notable in various sectors: Polar Capital Technology Trust rose 11 pence to 440p, Whitbread gained 71p to nearly 3,000p, and Fresnillo grew by 56p to 2,408p. Conversely, shares of Pearson, Persimmon, Associated British Foods, Rightmove, and Centrica registered declines, reflecting a mixed market environment influenced by sector-specific pressures.

Looking back over recent weeks, the FTSE 100 had seen fluctuations tied to global economic factors and investor sentiment. Around mid-October, the index dipped to a two-week low amid fears over US regional banks and declines in oil majors due to falling oil prices and risk-off sentiment. Banking and oil sector concerns weighed heavily on markets with significant losses in major UK banks such as HSBC and Barclays. However, preceding this, the market had shown resilience following various positive signals, including strong UK growth data and reports of easing US-China trade tensions, which have continually shaped investor outlooks.

The outlook remains cautiously optimistic as investors await further clarity from forthcoming UK fiscal announcements and US-China trade negotiations. Meanwhile, the global macroeconomic landscape continues to exert its influence, with factors like central bank decisions, geopolitical developments, and commodity price movements playing pivotal roles in market direction.

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Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
8

Notes:
The narrative is current, with the earliest known publication date of similar content being October 17, 2025. The report includes updated data, such as the FTSE 100 closing at 9,403.57 on October 20, 2025, and mentions a planned meeting between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in Malaysia. However, the narrative references a press release from October 18, 2025, indicating that some content may be recycled. The inclusion of recent data and events justifies a higher freshness score but should still be flagged. ([thestar.com.my](https://www.thestar.com.my/news/nation/2025/10/18/us-treasury-secretary-china039s-vice-premier-likely-to-meet-in-malaysia-ahead-of-trump-xi-talks?utm_source=openai))

Quotes check

Score:
7

Notes:
The narrative includes a quote from Joshua Mahony, chief market analyst at Scope Markets, stating that fears around the US-China trade spat have abated for the time being. A search reveals that this quote appears in the report from October 20, 2025, and is not found in earlier material, suggesting it may be original or exclusive content. However, without access to the full text of the original report, it’s challenging to confirm the originality of all quotes.

Source reliability

Score:
9

Notes:
The narrative originates from The Independent, a reputable UK news organisation. The report cites information from Reuters, a well-established news agency, and includes references to official statements from the US Department of the Treasury. This strengthens the credibility of the information presented.

Plausability check

Score:
8

Notes:
The narrative presents plausible claims, such as the FTSE 100’s performance and the planned meeting between US and Chinese officials. These events are corroborated by multiple reputable sources, including Reuters and the US Department of the Treasury. The language and tone are consistent with typical financial reporting, and the structure focuses on relevant details without excessive or off-topic information. There are no apparent inconsistencies or suspicious elements in the narrative.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary:
The narrative is current and includes updated data, with quotes that appear to be original or exclusive. It originates from a reputable source and presents plausible claims supported by multiple reputable outlets. While some content may be recycled, the inclusion of recent data and events justifies a higher freshness score. Overall, the narrative passes the fact-check with high confidence.