Early market roundup: Stocks rise as Trump-Xi talks confirmed

European stocks opened higher on Monday as the oil price eased, bond yields narrowed and as US President Donald Trump and Chinese President Xi Jinping are set to hold talks.

The cooler Brent price, which came despite geopolitical tensions remaining in focus, kept a lid on the FTSE 100's progress as Shell and BP fell 0.5% and 1.5%.

The FTSE 100 index opened up 39.51 points, 0.4%, at 10,698.64. The FTSE 250 added 144.78 points, 0.6%, at 24,350.20, and the AIM all-share was up 0.43 of a point, 0.1%, at 796.52.

The Cboe UK 100 rose 0.4% at 1,064.38, the Cboe UK 250 added 0.5% at 21,100.73, and the Cboe Small Companies edged up 0.1% at 18,752.93.

In European equities on Monday, the CAC 40 in Paris and the DAX 40 in Frankfurt each added 0.6%, both outperforming London's FTSE 100.

Sterling rose to USD1.3377 from USD1.3372 at the time of the London equities close on Friday. Against the euro, it faded to EUR1.1653 from EUR1.1661.

Against the dollar, the euro advanced to USD1.1475 from USD1.1466. The dollar rose to JPY157.21 from JPY157.07.

The yield on the US 10-year Treasury was quoted at 4.97%, narrowing from 5.01%. The yield on the US 30-year Treasury was quoted at 5.30%, narrowing from 5.34%.

In China, the Shanghai Composite ended up 1.0%, while the Hang Seng Index was 0.9% higher in late trade. The S&P/ASX 200 closed flat. Financial markets in Tokyo are closed on Monday.

Brent oil was quoted at USD101.61 a barrel, down from USD104.37. Gold traded at USD4,348.43 an ounce, down from USD4,355.67.

"The better tone for risk sentiment comes despite renewed uncertainty in the US-Iran conflict, an escalation in fighting between the Houthis and Saudi Arabia as well as ongoing warnings about European security and the threat of hybrid attacks from Russia following elections there. Instead, it looks like the more optimistic tone in markets to start the week is being set by news that US-China talks ahead of the Trump-Xi meeting later this week have made progress on tariffs and AI. Also, news from the US military that oil and gas shipments through the Strait of Hormuz are picking up due to US naval protection helped dampen wholesale energy prices," Lloyds Bank analysts commented.

The US warned Saturday that hostilities between Saudi Arabia and Iran-backed Houthis could "escalate rapidly" after a missile attack targeted Riyadh for the first time since the Yemen conflict resumed.

Trump cut short a weekend at Camp David, a secluded presidential complex in rural Maryland, to return unexpectedly to the White House on Saturday.

The White House gave no explanation for the early return, which comes as a new threshold was crossed in the conflict between Saudi Arabia and the Houthis, who control a large part of Yemen and are fighting government forces backed by a coalition led by Riyadh.

Iran's Revolutionary Guards on Monday warned they would attack new targets and deploy new weapons if the US launches further attacks on the country.

In a statement, a spokesman for the Islamic Revolutionary Guards Corps, the ideological arm of Iran's military, said "there will certainly be significant changes in our defence and our counteroffensive" in the event of a new US attack.

China's leader will visit the US this week for talks with President Trump, Beijing confirmed on Monday.

Xi will be there from September 23 to 25, a government statement said, without adding further information.

US and Chinese economic officials discussed creating a communication channel for artificial intelligence concerns at meetings Sunday as they set the stage for a summit of the countries' top leaders this week.

The talks come as both powers confront rising fears that increasingly capable artificial intelligence systems could wipe out humanity, offering a rare incentive for cooperation despite an intensifying race for technological supremacy.

"We just had a very successful engagement with the Chinese on trade and AI," US Treasury Secretary Scott Bessent told reporters after long talks with a team led by Chinese Vice Premier He Lifeng.

In London, JD Sports shares rose 1.3%. It has entered a partnership with retail distributor Axo, as the sportswear company takes its "first step into Mexico". Axo will operate JD stores and e-commerce in Mexico, using the FTSE 100-listed company's brand and intellectual property.

"Axo and JD will also leverage JD's own-brand and exclusive product portfolio, to deliver a differentiated proposition for Mexican consumers across footwear, apparel and accessories," JD Sports said. "Commencing in 2027, Axo will operate more than 140 JD premises in Mexico, leveraging its existing retail estate of sneaker stores. Over time, key locations are expected to be upsized and reimagined in line with JD's flagship 'bigger and better' format, creating some of the most compelling sports fashion destinations and bringing an entirely new sports fashion destination to Mexican consumers."

Mexico offers a "significant runway for growth", with the market valued at some USD6.5 billion and expected to grow to over USD10 billion by 2034.

The Mexico move builds on its presence in the US and Canada, JD Sports said.

"JD and Courir currently have 75 franchise stores across Europe, the Middle East, Africa and Asia, supporting the group's ambition to expand into attractive new markets through partnerships under a proven model with best-in-class local operators," JD Sports added.

Craneware shares plunged 22%. It reported an increase in annual earnings, but progress was "below our expectations".

The provider of financial software for the healthcare sector said pretax profit in the year to June 30 rose 7.4% to USD25.8 million from USD24.0 million, as revenue inched up 0.1% to USD206.0 million from USD205.7 million.

In July, it said it was responding to a cybersecurity incident involving unauthorised access to a subset of its data environment. Craneware said it notified the Information Commissioner's Office in the UK and the Federal Bureau of Investigations in the US.

Chief Executive Officer Keith Neilson added on Monday: "The cyber incident has led us to reset our near-term financial expectations to provide certainty to stakeholders, but it does not change our confidence in the group's long-term opportunity. In FY27, our priorities are to renew long-term customer contracts, expand recurring revenue through sales to new and existing customers, ensure our cost base is suitably sized and maintain strong cash generation, providing a platform for growth in FY28 and beyond."

Craneware has lowered its final dividend to 17 pence per share from 18.5p, but its total payout is steady at 32p.

The company is taking a "prudent view of its revenue expectations". It sees revenue of around USD185 million in financial 2027, equal to its annual recurring revenue. Analysts at Panmure Liberum noted consensus stood at USD220 million.

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