Source: Sharecast
At 0825 BST, the FTSE 100 was up 0.1% at 8,948.03. At the same time, sterling was down 0.2% against the dollar at 1.3464 after Bank of England governor Andrew Bailey said in an interview with The Times that there was potential for larger cuts to interest rates if the UK jobs market slows quickly.
Investors were also mulling Trump’s latest trade war rhetoric, after the US President said on Saturday that he was planning to impose 30% levies on imports from the European Union and Mexico from 1 August.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "That’s far more than what the EU expected - they were hoping for a figure closer to what the UK secured: a 10% tariff, with exceptions for key sectors like metals and pharmaceuticals. Instead, they got a big, fat 30%.
"Trump did leave the door open for further negotiations and some fine-tuning, but given the level of tariffs unveiled since last week, you have to wonder whether it’s worth the time and energy to negotiate with a government that appears to have lost the plot - or if it's better to pursue other deals with other nations. That’s what the Europeans are now discussing: finding new friends."
She added: "It’s becoming increasingly clear that the UK will be one of the rare privileged partners to retain 10% tariff access to US markets. But even that doesn’t seem to help much."
Looking to the rest of the week, attention will turn to the US, where earnings season will kick off with the big banks. Results are due on Tuesday from JPMorgan, Citigroup and Wells Fargo, while Bank of America and Goldman Sachs are slated to report on Wednesday.
Corporate news was thin on the ground, but Ashmore gained as it said assets under management increased by $1.4bn over the three months ended 30 June, made up of a positive investment performance of $2.2bn and net outflows of $800.0m.
Ashmore said net flows improved from Q3, with "significantly lower" redemptions, against a backdrop of "continuing trade tensions and geopolitical uncertainty".
Precious metals miner Fresnillo was the top riser on the FTSE 100 as gold prices advanced.
Asia-focused Standard Chartered and Prudential also rallied after data showed that Chinese exports jumped in June as companies took advantage of a temporary ceasefire in the country's trade war with Washington.
According to the General Administration of Customs, exports rose 5.8% last month, a gain on May’s 4.8% rise and more than the 5% expected.
Market Movers
FTSE 100 (UKX) 8,948.03 0.08%
FTSE 250 (MCX) 21,558.18 -0.25%
techMARK (TASX) 5,143.89 0.04%
FTSE 100 - Risers
Fresnillo (FRES) 1,545.00p 1.91%
AstraZeneca (AZN) 10,610.00p 1.53%
Standard Chartered (STAN) 1,299.00p 1.33%
Prudential (PRU) 930.60p 1.31%
Associated British Foods (ABF) 2,063.00p 0.73%
Rio Tinto (RIO) 4,487.50p 0.68%
Glencore (GLEN) 314.60p 0.67%
GSK (GSK) 1,415.50p 0.50%
HSBC Holdings (HSBA) 914.70p 0.46%
Kingfisher (KGF) 277.40p 0.43%
FTSE 100 - Fallers
WPP (WPP) 415.00p -1.38%
SEGRO (SGRO) 650.00p -1.07%
Spirax Group (SPX) 6,115.00p -1.05%
BT Group (BT.A) 192.70p -1.00%
Flutter Entertainment (DI) (FLTR) 21,220.00p -0.98%
Intermediate Capital Group (ICG) 1,983.00p -0.95%
Melrose Industries (MRO) 529.20p -0.90%
CRH (CDI) (CRH) 6,992.00p -0.85%
Berkeley Group Holdings (The) (BKG) 3,650.00p -0.82%
Alliance Witan (ALW) 1,244.00p -0.80%
FTSE 250 - Risers
Senior (SNR) 190.20p 2.81%
Me Group International (MEGP) 225.00p 2.27%
Victrex plc (VCT) 736.00p 2.08%
Hochschild Mining (HOC) 285.80p 1.85%
Petershill Partners (PHLL) 235.00p 1.73%
Genus (GNS) 2,250.00p 1.35%
Merchants Trust (MRCH) 564.00p 0.71%
Baltic Classifieds Group (BCG) 364.50p 0.69%
HarbourVest Global Private Equity Limited A Shs (HVPE) 2,535.00p 0.60%
Playtech (PTEC) 380.50p 0.53%
FTSE 250 - Fallers
Future (FUTR) 712.50p -3.13%
CMC Markets (CMCX) 235.00p -2.49%
Marshalls (MSLH) 251.50p -2.33%
WH Smith (SMWH) 1,031.00p -2.09%
Aston Martin Lagonda Global Holdings (AML) 79.00p -1.62%
Burberry Group (BRBY) 1,200.50p -1.48%
Carnival (CCL) 1,935.00p -1.40%
Hammerson (HMSO) 284.60p -1.39%
Close Brothers Group (CBG) 386.20p -1.38%
Impax Environmental Markets (IEM) 385.50p -1.15%