Daily market update: FTSE 100, gold, S4 Capital, Nvidia/AMD, Marshalls

“The FTSE 100 made a decent start to the trading week as some recent laggards attracted attention from bargain hunters,” says AJ Bell Investment Director Russ Mould.

“The market seems very relaxed ahead of tomorrow’s deadline on US-China trade talks, reflecting the assumption an extension is in the offing and a deal will eventually be reached. While the mood music between Beijing and Washington has improved, there is some risk investors’ confidence proves misplaced.

“Inflation, retail sales and industrial production data should offer insight into the health of the US economy after weak jobs figures at the start of August raised the spectre of recession.

“Gold prices lost some of their lustre on suggestions the Trump administration might not put tariffs on gold bars after all.

“In the UK, employment data will be closely monitored on Tuesday after last week’s Bank of England meeting where the decision to cut rates was unexpectedly on a knife edge and policymakers adopted a hawkish tone.

“Martin Sorrell’s digital advertising vehicle S4 Capital confirmed merger talks with private equity – potentially providing a full stop on a buy-and-build venture which has struggled to gain traction after initially generating excitement. The shares are now worth a fraction of what they were at their 2021 peak.”

Nvidia/AMD

“It may be a highly unusual arrangement but investors in Nvidia and AMD may take the view it is worth signing up to a revenue sharing agreement with the US government if it means the companies can export their chips to China.

“The Chinese market is significant for both these companies so even if they have to give up a bit of the money they would otherwise make it looks like a logical move on paper. That said, it is unprecedented and there is always the risk the revenue take could be upped or that the Trump administration changes its mind and reimposes export controls.

“It demonstrates the tricky environment companies are having to navigate in 2025, with even a business with the heft of Nvidia having to jump through hoops to do business.”

Marshalls

“Cracks continue to appear in paving slab specialist Marshalls as – a matter of weeks after a major profit warning – the company’s first-half earnings came in short of expectations.

“During the pandemic Marshalls shaped up pretty well, its customer base for landscaping products had the money and, due to spending plenty of time in their gardens, incentive to spend to do up their outside spaces.

“However, a more constrained economic backdrop has not helped the business and the shares are trading well below their 2021 highs.

“There will be a measure of relief that the company is sticking with the reduced full-year guidance given at the end of July and Marshalls did eke out revenue growth in the first half of the year – helped by a decent showing for its roofing and building products businesses.

“The decision to position the group to benefit from infrastructure spend, particularly in the water space, looks a sensible one but investors may not have that much patience with Marshalls given its recent struggles.”