FTSE 100 climbs 56 points to 9,080
US-Japan trade agreement boosts markets
Results from Wetherspoons, Informa, Heathrow, Breedon
10.55am: Slight silver and gold divergence
While the FTSE is stomping up to new highs, there are 20 blue-chips in the red.
This was 21 but Fresnillo PLC (LSE:FRES), the Mexican precious metals miner, has climbed back into positive territory.
Earlier, its shares were under pressure, down almost 5% after it reiterated full-year silver production guidance.
Silver prices are continuing to press higher this morning, up to almost $39.4 an ounce this morning, while gold is back up to $3,430 after dipping earlier.
Market analyst Nikos Tzabouras at Tradu says precious metals prices eased as the US-Japan trade agreement “fuels risk-appetite”, with the 15% tariff rate significantly lower than the previously threatened 25% and creating “hopes for a similarly constructive resolution in the negotiations” with China and the EU.
“With trade optimism returning and the potential for less severe tariff impacts on key economies, demand for bullion has slowed,” he says.
“However, gold maintains its bullish bias and remains on track for new all-time highs,” he adds, noting that US dollar weakness can also support gold’s strength.
“Its safe haven appeal can be revived as trade tensions are likely to persist ahead of the August 1 deadline.”
Silver, meanwhile, is getting closer to a new 14-year high, buoyed by the US-Japan agreement, which can bolster industrial demand, as the metal plays a key role in various tech, defence and clean energy projects.
10.31am: Ex Citi and Barclays traders convictions overturned
Two former traders jailed for rigging interest rates have had their convictions overturned in a unanimous decision by the Supreme Court.
Tom Hayes, former Citigroup and UBS trader who served five-and-a-half years in prison, was originally given a 14-year jail sentence in 2015 for rigging the Libor interest rate, later cut to 11 years on appeal. Carlo Palombo, ex-vice president at Barclays, was jailed for four years for rigging the Euribor rate.
The pair took their cases to the country’s highest court after being rejected by the Court of Appeal last year.
The Supreme Court overturned both Hayes and Palombo’s convictions unanimously.
A spokesperson for the Serious Fraud Office (SFO), which opposed the appeals, said a retrial was unlikely to be sought.
10.02am: Markets in buoyant mood
Global markets are “in buoyant mood” due to the US and Japan reaching a trade deal, says market analyst Neil Wilson at Saxo.
US futures are up after the S&P 500 notched a fresh record on Tuesday, while the FTSE 100 hit a new record this morning. European stock markets are broadly higher with automakers leading.
He notes that the Hang Seng rose over 1.2% while mainland China stocks were mixed as US Treasury Secretary Scott Bessent said the tariff suspension with China is “likely” to be extended after the 90-day tariff pause expires on 12 August.
“It’s unclear right now if the positive news on the Japan trade deal means anything material for Europe striking a trade deal with the US – you would think that it does,” says Wilson.
European stock markets are certainly acting on the hope that the Japan deal means the EU is about to achieve the same.
Wilson notes reports that the European Union is considering whether to deploy its “Anti-Coercion Instrument” should there be no trade deal by 1 August, which would mean 30% tariffs on exports to the US – this would effectively kill trade between the two, “the nuclear option is on the table it seems, but for the moment expectation seems to be veering towards a deal”.
Kathleen Brooks at XTB says the promised resumption of trade talks between the US and China next week, ahead of the deadline, “suggests that the US is more focused on agreeing a deal with China, rather than the EU.”
The EU has until August 1 – Friay next week – to reach a trade agreement, otherwise, it will be subject to 35% tariffs or else Trump may agree an extension.
“We continue to think that tariff news will have the broadest impact across financial markets in the coming days,” says Brooks, pointing to the example, of the gold price falling $4 today, with oil prices searching for direction.
Record high for FTSE 100, futures higher, markets taking this trade deal as a sign of good things to come.
— Chris Beauchamp (@ChrisB_IG) July 23, 2025
9.29am: Musk still interested in politics
Away from all the trade news, Bloomberg has found a potentially interesting detail in Elon Musk’s recent tender offer for SpaceX, which includes an odd health warning that he may remain involved in politics, despite stepping back from official roles.
Musk previously served as a senior adviser to former President Donald Trump and may take on similar government roles in the future, according to documents reviewed by the financial news service.
SpaceX’s offer values the company at around $400 billion, making it the most valuable private firm globally.
Musk may be asked about his commitments during the Tesla Inc (NASDAQ:TSLA) earnings call this evening, though his comments on robotaxis are expected to be the main topic.
9.05am: Mid-caps mount up
Joining its blue-chip sibling on the front foot, the FTSE 250 is up a similar 0.4%.
As in Europe, the index’s auto sector is in the lead, though in London’s case this is just Aston Martin Lagonda Global Holdings PLC (LSE:AML), up 6%. Car parts maker Dowlais Group PLC (LSE:DWL) is up 0.6%.
ASOS PLC (LSE:ASC) is topping that, up 9.6%, though not sure why.
JD Wetherspoon PLC (LSE:JDW) shares are next, up 2.7% to a one-year high after its year-end update.
Shore Capital analyst Greg Johnson says Spoons has issued “what we would see a solid trading update, with robust LFL sales growth, profits expected to be in line with market expectations, and what seems like more ambition on the estate opportunity”.
He say what piqued his interest this morning was commentary around plans to open 15 new managed pubs and a similar number of franchised openings next year, which would be the highest number of new openings since 2015.
8.37am: European stocks soar
Wider European markets are bathed in a green glow this morning, with the Euro Stoxx 600 up 0.9%.
France’s CAC is leading the way, up 1.2% as carmakers Stellantis and Renault echo moves for Japanese rivals in the hope that the EU can secure a similar deal.
Luxury names Kering and LVMH are next, followed by construction materials giant Saint-Gobain and tyre maker Michelin.
Italy’s FTSE MIB is up 1.1% and Germany’s DAX is up 1%, with the latter led by carmakers Porsche, Mercedes-Benz, VW and BMW, while in Milan the dual listed Stellantis is top of the leaderboard, followed by auto parts suppliers and banks.
Spain’s IBECX, up 0.6%, is lagging, held back by falls for energy sector players Endesa, Naturgy Energy, and Redeia.
The FTSE 100’s 0.45% gain is also put in the shade, though this almost obscures the fact that the index is pushing new intraday highs.
8.13am: FTSE 100 leaps at the open
The FTSE 100 leapt 40 points higher in initial trades, led by gains across a wide array of sectors as the market mood was boosted by news of the US-Japan trade agreement.
Informa PLC (LSE:INF), the events and exhibitions provider, led the way, up 4% as it hiked its interim dividend 9.4% and announced an additional £150 million share buyback, alongside strong interim results.
Drugmakers AstraZeneca and GSK, retailer JD Sports, engineer Spirax and Guinnness maker Diageo are also on the early leaderboard.
7.58am: UK-India deal to be signed
Today we are also reminded of another notable trade deal – the one between the UK and India – as Prime Minister Narendra Modi lands in London to sign the free trade agreement that was agreed in May.
Modi’s two-day state visit starts today.
A statement from the Indian government revealed that he will be holding “wide-ranging” talks with Keir Starmer on trade, defence, technological cooperation and security, and has also been invited to meet King Charles.
He will be accompanied by his commerce minister, Piyush Goyal, who led the UK trade talks.
Reports note that the deal must still be ratified by both parliaments, meaning it may not be fully implemented until next year.
7.50am: German DAX boosted by Japan deal
As well as the Japan trade deal, it has been reported by a local newspaper that Prime Minister Ishiba has decided to step down and might announce his resignation as soon as this month, following the upper house election at the weekend that saw his party lose its majority.
This is part of a trio of “huge news” from the country, says Henry Allen, macro strategist at Deutsche Bank, the third being weak demand at a 40yr bond auction that has seen a fresh move higher for all Japanese government bond yields.
The 10yr bond yield was up 7.3 points to 1.58%, which would be almost its highest closing level since 2008.
“For global markets, the trade deal news has been the most significant, as it’s raised hopes that the US might be about to reach deals with other countries that avoid the higher tariffs on August 1,” says Allen.
“Notably, one of the other strong performers this morning are European equity futures, with those on the German DAX up +0.93%.
“That’s because the Japan deal has significantly raised hopes that the EU might also be able to reach a trade deal, as they’ve been threatened with 30% tariffs on August 1.”
On that note, Trump also announced a deal with the Philippines yesterday, while his Treasury Secretary Bessent also made some positive remarks on trade, stating that he would meet his Chinese counterparts in Stockholm for further talks.
After the US and China agreed to a 90-day tariff pause in May, running out in mid-August, Bessent struck a positive note, saying that “we’ll be working out what is likely an extension then”.
7.33am: Wetherspoon says profits in line with expectations
JD Wetherspoon PLC (LSE:JDW) has reported a slowing in growth for the final quarter of its financial year, but said favourable weather has enabled profits to be in line with market expectations for the year.
A 5.1% rise in like-for-like sales in the 12 weeks to 20 July, which matched the growth rate for the entire 12 months, was down from 5.6% in the previous quarter.
Chairman Tim Martin said: “The company has benefitted from favourable weather in the fourth quarter, so that profits are anticipated to be in line with market expectations, notwithstanding the high tax and labour increases for the hospitality industry, which have been widely reported.”
He seems in a very good mood, saying said sales volumes have recently overtaken pre-pandemic levels, including wine “shooting the lights out”, spirits and draught beer, with Guinness being the “standout performer”, as well as chicken meals putting in a “clucking good performance”.
7.18am: Japan-US trade deal agreed
After Japan agreed to a trade deal with the US, the big risers in Tokyo are led by carmakers.
Mazda Motor has soared almost 18%, Subaru 17%, Toyota Motor 15%, Mitsubishi Motors 13%, Honda Motor 11%, followed by factory robotics specialists Fanuc and Yaskawa Electric, both up over 10%, and sensors and semiconductors maker TDK, up 9.5%.
“Although the specifics remain unclear, both parties called the pact deal a success,” says Min Joo Kang, economist at ING.
“Trump appears to view it as a massive deal, while Ishiba characterised it in less grandiose terms. Ishiba pointed out that among countries with a trade surplus with the United States, Japan negotiated the lowest tariff rate.”
For automobile exports, Japan secured a 15% tariff without any volume restrictions, in contrast to the UK’s arrangement.
Regarding the politically sensitive matter of rice and other agricultural products, the Japanese PM stated that, while the country will increase US rice imports within the existing quota, it won’t compromise the domestic agricultural market.
Ishiba denied that Japan agreed to lowering import tariffs, which he claimed were not included in the agreement.
The agreed $550 billion investment into the US will be backed by loans from government-related organisations and, says Kang, is expected to include projects such as LNG projects in Alaska, and boost imports of US goods, including agricultural products.
“But, the implementation of a 15% tax on cars without a limit is a surprise. Ongoing uncertainty regarding Japanese politics — including reports Ishiba will stepping down soon — and the exclusion of defence spending from the agreement may introduce complexities to the negotiation process.”
7.15am: FTSE 100 set to come in hot
The FTSE 100 is predicted to come in hot on Wednesday morning, extending gains from its record closing highs over the past two days, as market sentiment is bolstered by news about a US-Japan trade deal.
Futures for London’s blue-chip benchmark are gesturing to a 40-point gain, after the index closed up around 11 at just under 9,024 yesterday.
US markets were mixed overnight, with the S&P 500 nudging its own all-time high, up less than 0.1% and the Dow Jones rising 0.4%, but the Nasdaq falling 0.4% as Nvidia joined a semiconductor sell-off.
But it’s Asia where the action is this morning, led by Tokyo’s Nikkei 225, which has rocketed up 3.9% on news of a US trade deal for Japan, though details remain vague.
What we know is that President Trump said in a social media post that Japan will receive a 15% reciprocal tariff and invest $550 billion in the US “at my direction”.
Japanese Prime Minister Ishiba confirmed that Japan will face 15% tariffs, including on autos, and won’t be disadvantaged from any tariffs on microchips, though the 50% tariff on steel and aluminium will remain for the time being.
6.15am: FTSE 100 Live on Wednesday 23 July
The London benchmark starts from an unprecedented position on Wednesday, having reached an all-time closing high above 9,000 over the first two days of the week.
Yesterday, the index finished up a modest 10.8 points but extended its closing record to 9,023.81, while also notching an intraday peak above 9,035.
In terms of company news in the diary, JD Wetherspoon PLC (LSE:JDW) is among those due to provide a quarterly update, having had a good run of late.
But it may not last, analysts at Deutsche Bank predicted, as the combination of sunny weather and share buybacks has boosted the stock’s performance, but neither is sustainable. Margins are expected to come under pressure, with earnings growth forecast to slow next year.
Less well known on the high street, but a big name in the world of corporate events and exhibitions – Cannes Lions, London Tech Week, or Money20/20 anyone? – is FTSE 100-listed Informa PLC (LSE:INF).
Shares hit an all-time high INF) has seen its share price suffer recently on investors’ concerns about the potential effects of an economic downturn and Donald Trump’s funding cuts to academia, said analysts at Berenberg, which they believe creates an “attractive buying opportunity”.
Later in the day, tech earnings are due from two of the ‘Magnificent 7’ tech behemoths, after the closing bell in New York, led size-wise by Google parent Alphabet Inc (NASDAQ:GOOG), where cloud momentum and YouTube growth are seen as having created a favourable setup for these quarterly numbers.
Tesla Inc (NASDAQ:TSLA) will also report earnings , having already revealed a 14% decline in vehicle deliveries for the second quarter, hit by rising competition and boycotts due to CEO Elon Musk’s political dabblings.
Analyst Matt Britzman at HL said, “it’s hard to remember when a set of financials mattered less for Tesla” with the investment case having “moved on from the core auto business to an AI-driven future”, with more riding on boss Elon Musk’s commentary about the Robotaxi rollout than anything else.
Announcements expected:
Trading updates: Hochschild Mining, JD Wetherspoon, PensionBee Group
Interims: Breedon Group, Informa
Finals: Van Elle
Overseas earnings: AT&T, GE Vernova, Boston Scientific, Northrop Grumman (all premarket), Alphabet, Tesla, IBM, T-Mobile (after close)
Economic announcements: MBA Mortgage Applications (US), Existing Home Sales (US), Crude Oil Inventories (US)
