Daily market update: US, China wobble, gold sparkles, LSE boosts AI work

Just as it looked as if the US and China were making baby steps to repair their relationship, Donald Trump throws a spanner in the works.

A new threat of high tariffs on Chinese goods coming into the US spooked investors in the East, with Asian markets showing a sea of red, following a similarly bad session for Wall Street last Friday.

This new-found nervousness pushed investors back into gold, putting the shine back on the precious metal and reigniting the rally in gold miners.

Fresnillo and Endeavour Mining topped the FTSE 100’s list of risers, representing a rapid U-turn from last week’s bout of profit taking.

Lloyds

Lloyds has increased its motor finance compensation provisions by more than two thirds. The bank gives the impression it is not happy with the proposed compensation methodology, implying this is not a done and dusted situation. It isn’t trying to wriggle out of paying compensation full stop. Instead, it appears to be pushing for a fairer redress system.

A rising share price represents two things: one, some clarity on Lloyds’ potential exposure; and two, hope that Lloyds might successfully get the regulator to tweak its proposal in its favour.

AstraZeneca

AstraZeneca has agreed to lower medicine costs for American patients. While that is bad for its profit margins, it should put the company in Trump’s good books which could result in a quiet life for the pharma group.

“This situation, together with plans to expand manufacturing capabilities in the US, means AstraZeneca’s management can focus on the day job and not be distracted by political issues.

London Stock Exchange

London Stock Exchange enjoyed a share price boost after giving more details on how it will use AI.

The exchange operator already has a partnership with Microsoft, and today’s announcement fleshes out how LSEG will use tech systems to help customers to harness its data and incorporate it into their workflows.

LSEG’s goal is to ensure its customers become dependent on its data systems that the risk of moving to a competitor is as low as possible.

Tritax Big Box REIT

Having fought on the battlefield over the acquisition of Warehouse REIT, Tritax Big Box REIT and Blackstone are now getting into bed together.

Blackstone won the fight for Warehouse REIT, and it is now doing a deal to sell certain property assets to Tritax in exchange for cash and a stake in the company.

Tritax further increases its exposure to the UK commercial property space and gets a shareholder with very deep pockets.

Blackstone gets its foot in the door with Tritax and would benefit as an investor from its success, as well as being close should the two companies seek to co-invest on projects in the future.

Blackstone clearly has a strong appetite for UK property as it also confirmed takeover interest in self-storage group Big Yellow. A lot is riding on the Budget as to whether Blackstone will make a formal bid, but throwing its hat into the ring now means it can act fast should Rachel Reeves not announce anything that dampens the appeal of the sector.