FTSE 100 Live 08 April: Markets rally on dealmaking hopes, S&P 500 seen higher

Buyers made a tentative return to the FTSE 100 index today as hopes for a US-Japan trade deal helped to pause three days of stock market turmoil.

Tokyo’s Nikkei 225 index rallied 6% after US Treasury Secretary Scott Bessent suggested Japan is front of the queue for tariff negotiations.

The Nikkei’s rebound and hopes of other trade deals lifted fragile confidence as the Hang Seng index and Shanghai Composite both improved more than 1.5%.

The stronger Asia session set the tone for an advance in Europe, with the FTSE 100 index leading the way following a rise of 1.9% or 144.29 points to 7846.37.

This followed losses of about 10% since last week, including Monday’s 4.4% reverse.

Wall Street futures also pointed to a stronger session, despite yesterday’s threat by Donald Trump to impose additional tariffs on China.

US markets were yesterday on course for another session deep in the red but the S&P 500 index and Nasdaqlast night finished near their opening marks.

AJ Bell investment director Russ Mould said the gains were welcome but that markets could stay fragile for days and weeks to come.

He added: “It would only take a new sign of aggression from Trump or a trading partner fighting back hard to cause upset again.

“Market recoveries can quickly lose momentum if investors lose faith in a remedy to the situation that caused the original sell-off.”

Bargain hunting investors in London targeted companies whose shares were performing strongly before the tariffs volatility sent valuations tumbling.

Rolls-Royce put back 5% or 32p to 667.8p, BAE Systems added 4% or 66p to 1563.5p and British Airways owner IAG cheered 8.6p to 233p.

Hopes of a stronger session for the Nasdaq also helped Scottish Mortgage Investment Trust to rally 4% or 31.6p to 846.8p and Polar Capital Technology Trust by 8p to 263.5p.

Among the other heavily-sold stocks of recent days, Barclays added 2% or 5.55p to 247.4p and miner Glencore lifted 2.5% or 5.75p to 235.8p.

Asia-focused stocks failed to benefit from the improved mood as Prudential fell 3.4p to 711.2p, Standard Chartered lost 7.8p to 929.4p and HSBC fell 1.9p to 735.9p.

BT Group was the biggest faller, declining 3% or 4.45p to 151.75p after UBS reiterated its Sell recommendation with an unchanged price target of 120p.

The FTSE 250 index rose 2.3% or 413.65 points to 18,178.84, with Deliveroo, Ocado and Raspberry Pi among 14 stocks up by 5% or more.

On AIM, the shares of pawnbroker and jewellery retailer Ramsdens Holdings lifted 9% or 17.5p to 222.5p after it lifted guidance for the September financial year.

A 5% increase in the weight of gold purchased and sharp rise in price of the precious metal have boosted the performance.

The price of oil remains at a four-year low after gains earlier in the session turned out to be short lived.

Brent Crude futures are down 0.5% at just below $64 a barrel, having fallen in the past four sessions due to fears over the demand impact of a US-China trade war.

Meanwhile, the gold price returned above the $3000 an ounce threshold following two days of selling.

Japan’s Nikkei 225 has closed 6% higher while the Hang Seng index lifted 1.6%, fuelled by the prospect of trade talks between the US and Japan.

Yesterday’s intraday recovery for US markets also boosted the outlook for today’s session after three days of heavy selling across global markets.

Despite last night’s improvement, the S&P 500 index and Dow Jones Industrial Average are still down by 14% and 10.8% respectively in the year to date.

Richard Hunter, head of markets at Interactive Investor, said: “It is far too early to say whether the reduced market falls represent an inflection point, or whether they are simply a classic “dead cat bounce”.

“The volatility within the US trading session in particular suggests that either is possible, especially since further tariff announcements will follow which could move sentiment in either direction.”

Hargreaves Lansdown analyst Matt Britzman added: “During periods of volatility, it’s essential for investors to stay calm and maintain a focus on long-term goals.

“Instead of making impulsive decisions, it’s wise to regularly review your portfolio, keeping it well-diversified across various geographies and asset classes to effectively manage risk.

“History has shown time and again that markets reward those who keep a cool head and think with a long-term horizon, now is no different.“

The shares of pawnbroker and jewellery retailer Ramsdens Holdings today jumped 9% after it lifted profit guidance on the back of strong trading and a high gold price.

The Middlesbrough-based group has 169 stores, with operations spanning FX exchange, pawnbroking loans, precious metals buying and the retailing of second hand and new jewellery.

It now expects profits for the year to September to be at least £13 million, up from 2024’s £11.4 million and ahead of previous expectations. Shares rose 19.2p to 224.2p.

Profits in the precious metals segment rose in the 50% first half of the year, driven by the gold price and a 5% increase in the weight of gold purchased. Pawnbroking gross profit increased by 10% on a year earlier.

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The FTSE 100 index has lifted 1.2% or 95.08 points to 7797.16, with heavily-sold BP, Shell and Barclays among the stocks more than 2% higher.

Rolls-Royce put back 3% or 18.8p to 654.6p and British Airways owner IAG jumped 6% or 13.3p to 237.7p.

In the mining sector, Glencore rose 3% or 7p to 237.1p and Anglo American improved 33.6p to 1846.6p.

IG chief market analyst Chris Beauchamp said: "It was almost inevitable that risk appetite would recover somewhat after the cataclysmic selling and doom-laden commentary of the past week.

“Stocks have rallied off their lows as investors seize on comments that indicate negotiations over tariffs are beginning."

He added that sentiment remains fragile, particularly with China pledging to fight 'to the end' and the EU announcing fresh tariff plans.

Beauchamp said: “The focus is now on the data to see how tariffs are affecting the economy. This week's US inflation print is too early, but with earnings season rapidly approaching we may get a chance to see how companies are dealing with the new reality."

The Nikkei 225 is 5.7% higher, driven by speculation that the US is prepared to open trade negotiations with Japan.

The Shanghai Composite and Hang Seng index are also in positive territory, despite Donald Trump threatening to impose additional tariffs on China.

US futures are pointing higher, while oil prices have rallied from yesterday’s four-year low to leave Brent Crude at just below $65 a barrel.

The FTSE 100 index is seen opening about 1.9% or 145.7 points higher.

Belluscura, the AIM-listed portable oxygen therapy business, today withdrew financial guidance amid uncertainty over the impact of US tariffs.

It said: “The company is currently assessing the potential financial implications, risks and opportunities of the imposition of tariffs, in particular the 54% tariff (previously 20%) for goods imported from China, in which a significant proportion of the company's portable oxygen concentrators, raw materials and component parts are currently manufactured.”

The developments have caused it to withdraw the market guidance it gave in February relating to the financial year ending 31 December.

The FTSE 100 index is seen ending its three-day slide after the S&P 500 index last night finished a volatile US session near to its opening mark.

IG Index futures point to a rise of 2.1% or 161 points for London’s top flight, having slumped 352.90 points or 4.38% to 7702.08 yesterday.

Last night’s close left the FTSE 100 down by more than 10% since last week

Wall Street had been on course for another session deep in the red but stronger afternoon trading left the S&P 500 index just 0.2% lower and the Nasdaq Composite slightly higher. The Dow Jones Industrial Average lost another 0.9%.

In Asia, the Nikkei 225 has rallied 6% while the Shanghai Composite and Hang Seng index are both flat. The prices of oil and gold are higher.