London midday: FTSE maintains gains amid trade deal, US rate cut hopes
By Michele Maatouk
Date: Friday 27 Jun 2025
(Sharecast News) - London stocks were still firmer by midday on Friday as optimism over a US-China trade deal and US rate cut hopes boosted sentiment.
The FTSE 100 was up 0.5% at 8,781.68.
The mood was lifted as it emerged that the US and China have taken a significant step towards securing a long-term trade deal after agreeing details of a trade framework.
In a statement, a spokesperson for the Chinese Ministry of Commerce said Beijing would "review and approve eligible applications for export of controlled items in accordance the law", while the US would cancel unspecified restrictions.
Donald Trump, meanwhile, said on Thursday "we just signed with China yesterday", although he did not provide any details.
A White House official later clarified that the two countries had "agreed to an additional understanding for a framework to implement the Geneva agreement", referring to the talks held in Switzerland last month.
They then added that the framework was focused on "how we can implement expediting rare earths shipments to the US again".
According to Bloomberg, US commerce secretary Howard Lutnick also said separately: "They' going to deliver rare earths to us," after which "we'll take down our countermeasures".
Neil Wilson, UK investor strategist at Saxo Markets, said: "Trade noises are positive. The US and China have confirmed their London agreement on rare earth and tech, while the White House said Trump's trade deadlines in July could be extended.
"Trump's July 8/9th deadlines for restarting tariffs are 'not critical', White House press secretary Karoline Leavitt said. That's one of the major risks for markets dealt with I guess.
"The other relates to the Fed, and some weak US data helped nudge the needle on when the market thinks the next cut is coming. US GDP was way lower than expected, as was inflation, boosting rate cut chances. Q1 Personal consumption came out softer at 0.5% versus expected 1.2% and lowest since Covid era. Annualised GDP QoQ came in -0.5% versus estimated -0.2% and below all estimates. US monthly PCE inflation is due out today.
"In short, markets are ignoring the noise - looking ahead to rate cuts from the Fed, fiscal stimulus in Europe, deregulation for banks on Wall Street, lower inflation and trade deals - hardly the negative environment everyone has been shouting about."
In equity markets, JD Sports surged to the top of the FTSE 100 after Nike posted better-than-expected fourth-quarter revenues, sending shares in the US sports retailer surging after hours.
Broker Shore Capital said: "While the commentary that Nike performance is 'not where we want it to be' is not surprising with FY25 revenue decline 10%, there is some encouragement from the fact that Q4 revenues were above consensus ($11.1bn versus consensus of $10.7bn) as was EPS (14c versus consensus of 13c).
"While Nike clearly still have work to do, it appears the business is past the worst and so we do see the potential for the removal of what has been a significant headwind for JD."
Unilever gained after the Financial Times reported that the consumer goods company is paying $1.5bn to buy men's grooming brand Dr Squatch from private equity firm Summit Partners.
Centrica nudged up after the FT said the energy firm will take a 15% stake in Britain's Sizewell C nuclear project following years of delays and extensive negotiations.
Fresnillo, Hochschild and Endeavour Mining all fell in tandem with gold prices.
Defence firm Babcock was also in the red after a downgrade to 'hold' from 'buy' at Deutsche Bank.
Market Movers
FTSE 100 (UKX) 8,781.68 0.53%
FTSE 250 (MCX) 21,601.68 0.59%
techMARK (TASX) 5,087.69 0.31%
FTSE 100 - Risers
JD Sports Fashion (JD.) 87.06p 6.56%
Ashtead Group (AHT) 4,590.00p 2.39%
Barclays (BARC) 337.35p 1.86%
Standard Chartered (STAN) 1,208.00p 1.85%
NATWEST GROUP (NWG) 509.40p 1.84%
Pearson (PSON) 1,071.50p 1.81%
Lloyds Banking Group (LLOY) 76.82p 1.40%
IMI (IMI) 2,094.00p 1.36%
Experian (EXPN) 3,829.00p 1.32%
Scottish Mortgage Inv Trust (SMT) 1,036.00p 1.27%
FTSE 100 - Fallers
Babcock International Group (BAB) 1,126.00p -2.68%
Fresnillo (FRES) 1,459.00p -2.47%
Halma (HLMA) 3,202.00p -1.42%
Antofagasta (ANTO) 1,809.50p -1.12%
BAE Systems (BA.) 1,868.50p -1.01%
Glencore (GLEN) 285.35p -0.99%
Admiral Group (ADM) 3,264.00p -0.79%
Entain (ENT) 894.60p -0.60%
BT Group (BT.A) 191.40p -0.60%
The Sage Group (SGE) 1,239.50p -0.56%
FTSE 250 - Risers
Kier Group (KIE) 209.50p 4.49%
RHI Magnesita N.V. (DI) (RHIM) 2,915.00p 3.55%
Watches of Switzerland Group (WOSG) 409.80p 3.28%
Moonpig Group (MOON) 227.50p 2.94%
Burberry Group (BRBY) 1,104.50p 2.84%
HGCapital Trust (HGT) 518.00p 2.57%
Coats Group (COA) 79.90p 2.57%
Helios Towers (HTWS) 122.60p 2.51%
Hill and Smith (HILS) 1,802.00p 2.50%
4Imprint Group (FOUR) 3,705.00p 2.49%
FTSE 250 - Fallers
Indivior (INDV) 983.50p -2.43%
Endeavour Mining (EDV) 2,232.00p -1.76%
Energean (ENOG) 882.00p -1.45%
Hochschild Mining (HOC) 254.80p -1.39%
Chemring Group (CHG) 569.00p -1.39%
Softcat (SCT) 1,744.00p -1.19%
Oxford Nanopore Technologies (ONT) 134.10p -1.03%
Quilter (QLT) 153.80p -1.03%
CMC Markets (CMCX) 253.50p -0.98%
Baltic Classifieds Group (BCG) 365.00p -0.95%
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