FTSE 100 Climbs as Markets Open with Cautious Optimism
The FTSE 100 has started the week on a positive note, climbing 25 points to 8,440, as markets open with cautious optimism. According to a report by Proactive Investors, the UK’s blue-chip index is expected to make a modestly positive start, continuing its gradual return to where it was before the US president unleashed his new tariff regime at the start of the month.
As noted by Proactive Investors, the market mood improved last week as US President Donald Trump eased pressure on Federal Reserve (Fed) Chair Jerome Powell, announced some progress with trading partners including Japan and India, and said that the triple-digit import taxes on Chinese products will probably be ‘substantially’ revised lower. Market analyst Ipek Ozkardeskaya at Swissquote Bank summarised the situation, saying, “Market mood improved last week as US President Donald Trump eased pressure on Federal Reserve (Fed) Chair Jerome Powell, announced some progress with trading partners including Japan and India, and said that the triple-digit import taxes on Chinese products will probably be ‘substantially’ revised lower.”
In early trading, shares in Deliveroo jumped after the company revealed a possible offer from New York-listed Doordash. According to Proactive Investors, Deliveroo’s shares rose 16% after the company announced that it had received a possible £2.7 billion takeover bid from Doordash, which it revealed after markets closed on Friday. The indicative price is less than half the 390p price at which Deliveroo completed its IPO in 2021.
Housebuilders were also lifted by reports of an emerging mortgage price war. Proactive Investors reported that Berkeley Group Holdings PLC (LSE:BKG) shares have been upgraded to ‘buy’ from UBS, which sees the blue-chip housebuilder’s valuation now as “more compelling”. Analyst Marcus Cole says Berkeley offers “high short-term earnings visibility”, sector-leading returns and “an underappreciated opportunity to generate value” from its build-to-rent portfolio.
The retail sector also saw some positive news, as Proactive Investors reported that retail sales volumes fell more slowly in April, decelerating from March’s sharp drop, according to the CBI’s latest distributive trades survey. However, retailers remain pessimistic about the outlook and expect sales to contract at a faster pace in May.
In other news, Plus500 Ltd (LSE:PLUS) said it has made “an excellent start to the year” and now expects full-year results to be ahead of current market expectations. The company grew revenue 13% to $205.8 million in the first quarter of 2025 compared to the final three months of last year, but down 5% on a year ago.
As noted by Proactive Investors, Susannah Streeter, head of money and markets at Hargreaves Lansdown, said that there is “cautious optimism” hovering around European markets, despite the uncertainty surrounding US trade policy and its effect on the global economy. Streeter noted that President Trump is preparing to rally his ‘maga faithful’ this week as he celebrates his 100 days in office in his second term.
Overall, the FTSE 100 is expected to continue its positive start to the week, driven by cautious optimism and a lack of negative news over the weekend. However, as Proactive Investors reported, US futures are pointing to a soft start to a week full of earnings, and the results could potentially throw a floor under the Trump-led selloff – if Trump doesn’t spoil the market mood.
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