(Sharecast News) - London stocks ended up on Monday as worries about the trade spat between the US and China eased, but B&M shares tumbled after another profit warning from the discount retailer.
The FTSE 100 closed 0.5% higher at 9,403.57.
Joshua Mahony at Scope Markets: "Despite recent rumours that the Chinese plan to hold out for as long as possible to put pressure on Trump, the US administration have already taken a notably softer tone that indicate an agreement in the coming weeks.
"Firstly, Trump decision to admit that the planned 100% tariff are 'not sustainable' already undermines his threat, highlighting that he is desperate for a deal. Secondly, Trump has claimed that he wants Soybean purchases to resume and rare earth trade to flow, with the President essentially just aiming for the status quo rather than his previous insistence that the Chinese economy must fully open to US businesses.
"However, there is a confidence that the Chinese also want to work towards a solution after Scott Bessent noted relations with Beijing had 'de-escalated' to the point that a meeting with Chinese Vice Premier He Lifeng was expected this week."
Investors mulled a slew of Chinese data releases, which showed that GDP and retail sales growth both slowed to their lowest rates in a year, while fixed-asset investment unexpectedly fell.
On home shores, data from Rightmove showed the housing market faltered in October as prices softened ahead of the Budget
Average house prices rose just 0.3%, well below the ten-year average for October of 1.1%. Year-on-year, prices dipped 0.1%.
The national average asking price now stands at 371,422.
Autumn traditionally benefits from a spike in demand as the market bounces back from the quieter summer months.
However, after years of constrained supply, the amount of property for sale has rocketed in recent months to a ten-year high, weighing on prices. Some movers are also increasingly cautious about committing to sales ahead of next month's Budget.
Rightmove's Colleen Babcock said: "Despite the overall resilience of the 2025 housing market, we've not got enough pent-up momentum or recent positive sentiment to spur the autumn bounce in property prices.
"Sellers who are serious about selling have had to acknowledge their limited pricing power and moderate their price expectations.
"In addition, speculation that the Budget may increase the cost of buying or owning a property at the higher end of the market has given some movers, particularly in the south of England, a reason to wait and see what's announced."
The number of new buyers contacting estate agents about homes for sale, and the number of new sellers coming to market were both down 5% in the full month of September, Rightmove noted.
However, in the year-to-date the market appeared more resilient. Agreed sales are 5% higher year-on-year, while new buyer demand is up 2% and new sellers 5%.
In equity markets, defence firms were on the front foot, with Babcock, Rolls-Royce and BAE Systems among the top performers on the FTSE 100.
Neil Wilson, UK investor strategist at Saxo Markets, said: "Defence names are lining up among the advancers as Trump reportedly told Zelensky to bow to Putin's demands or be destroyed by Russia."
On the downside, housebuilders Persimmon, Berkeley, Bellway and Taylor Wimpey all fell on the back of the Rightmove data.
B&M European Value Retail tumbled as it announced the departure of its finance chief after it discovered 7m of freight costs had not been correctly recognised, hitting profits and causing it to cut its full-year outlook.
The bargain chain said Mike Schmidt would stay with the business while it searches for his successor, to ensure an orderly transition.
Marks & Spencer fell after RBC Capital Markets downgraded the shares to 'sector perform' from 'outperform'.
"M&S should be well positioned, given its strength in premium food and it has been fighting to win back customers in fashion," the bank said. "However it remains a UK consumer proxy, we think execution risk is higher post recent cyber disruption, and we think valuation upside is less than for some other retailers."
Market Movers
FTSE 100 (UKX) 9,403.57 0.52%
FTSE 250 (MCX) 21,868.48 0.39%
techMARK (TASX) 5,513.30 0.22%
FTSE 100 - Risers
Whitbread (WTB) 2,973.00p 2.45%
Fresnillo (FRES) 2,408.00p 2.38%
Weir Group (WEIR) 2,850.00p 2.30%
Rolls-Royce Holdings (RR.) 1,127.00p 2.18%
Anglo American (AAL) 2,895.00p 2.15%
Babcock International Group (BAB) 1,167.00p 2.10%
Airtel Africa (AAF) 229.00p 1.87%
Prudential (PRU) 1,008.50p 1.72%
Scottish Mortgage Inv Trust (SMT) 1,125.50p 1.67%
BAE Systems (BA.) 1,862.00p 1.67%
FTSE 100 - Fallers
Pearson (PSON) 1,088.50p -2.77%
Persimmon (PSN) 1,152.00p -1.83%
Associated British Foods (ABF) 2,205.00p -1.52%
Rightmove (RMV) 665.40p -1.48%
Centrica (CNA) 171.90p -1.35%
Berkeley Group Holdings (The) (BKG) 3,954.00p -1.20%
Flutter Entertainment (DI) (FLTR) 18,580.00p -1.09%
United Utilities Group (UU.) 1,182.50p -1.09%
Metlen Energy & Metals (MTLN) 41.15p -1.08%
WPP (WPP) 347.60p -1.08%
FTSE 250 - Risers
W.A.G Payment Solutions (EWG) 92.20p 4.54%
THG (THG) 45.00p 3.73%
Inchcape (INCH) 721.50p 3.59%
Chemring Group (CHG) 548.00p 3.40%
Baillie Gifford Japan Trust (BGFD) 951.00p 3.26%
Investec (INVP) 571.00p 2.98%
Hill and Smith (HILS) 2,120.00p 2.91%
JPMorgan Emerging Markets Inv Trust (JMG) 132.20p 2.80%
Allianz Technology Trust (ATT) 502.00p 2.76%
Dr. Martens (DOCS) 91.75p 2.74%
FTSE 250 - Fallers
B&M European Value Retail S.A. (DI) (BME) 167.70p -22.75%
Vietnam Enterprise Investments (DI) (VEIL) 743.00p -5.23%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 452.50p -5.14%
Wizz Air Holdings (WIZZ) 1,115.00p -4.54%
Watches of Switzerland Group (WOSG) 371.00p -3.74%
Unite Group (UTG) 555.00p -3.39%
Genus (GNS) 2,635.00p -2.95%
Oxford Biomedica (OXB) 575.00p -2.21%
Tate & Lyle (TATE) 374.80p -2.04%
Empiric Student Property (ESP) 77.70p -2.02%
49.00 (0.52%)
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