Alphabet Shares Steady as Trump-India Trade Deal Lifts Markets

Alphabet shares were steady as global markets recovered, led by gains in Asia after Donald Trump announced a US–India trade deal that boosted Indian assets and the rupee. Australian stocks and the Aussie dollar strengthened after the Reserve Bank of Australia raised rates, supporting mining shares. Gold and silver stabilised after sharp losses, while US equities took cues from trade headlines and central bank moves rather than earnings.

Equities

London’s FTSE 100 closed at a record high late on Monday, rising 1.1% to finish at 10,341.56, marking its third consecutive daily gain. The index advanced despite weakness in commodity-linked stocks, as strong buying in banks and defensive healthcare names more than offset falls in mining and energy shares. The mid-cap FTSE 250 also ended the session higher, up 0.7%, recovering part of last week’s decline.

Within the FTSE 100, healthcare stocks provided a significant lift. AstraZeneca closed 3.2% higher on Monday, helping the broader healthcare sector gain 2.6%, as investors continued to favour large pharmaceutical groups with stable earnings profiles. Financial stocks also pushed higher, with the banking sector ending at its strongest level since 2008. Barclays and NatWest Group both rose around 2.7% by the close, extending recent gains as investors added exposure to UK lenders.

Precious metal miners weighed on the index. Endeavour Mining fell close to 2.6% and Fresnillo slipped 0.9% by the end of the session, as gold prices dropped sharply late on Monday following a wave of unwinding in leveraged positions. Energy stocks also fell in London, mirroring lower oil prices. Shell closed 0.5% lower and BP ended down 0.4%, as comments from US President Donald Trump about progress in talks with Iran eased concerns about potential supply disruptions.

In the United States, the S&P 500 closed 0.54% higher on Monday, finishing just shy of its record closing level. The Nasdaq rose 0.56%, while the Dow Jones Industrial Average gained 1.05%. Gains were led by technology and smaller companies, with the Russell 2000 rising about 1% by the end of trading. Alphabet shares closed 1.9% higher at a record level, while Amazon added 1.5%, with both companies in focus ahead of quarterly results due later this week. Palantir edged up 0.8% ahead of its earnings release after the close.

Chipmakers saw some of the largest moves. SanDisk surged 15.4% by the close, while Advanced Micro Devices rose 4% and Micron Technology gained 5.5%, as investors continued to focus on demand linked to artificial intelligence infrastructure. Walt Disney moved sharply in the opposite direction, closing 7.4% lower despite reporting quarterly earnings above expectations, after management warned of softer international visitor numbers at its US theme parks and weaker performance in its film and television division.

Energy stocks in the S&P 500 fell 2% late on Monday as oil prices declined, while airline shares moved higher. United Airlines, Delta Air Lines, JetBlue and Southwest Airlines all closed between 4% and 8% higher, supported by the drop in fuel costs. US factory activity data released late on Monday showed a return to growth in January, while trading continued against the backdrop of a partial US government shutdown that has delayed the release of this week’s employment report.

Forex & Commodities

The US dollar held onto recent gains, trading slightly lower at 97.46 on the dollar index after a strong advance at the end of last week. The euro edged up to 1.181 against the dollar in Asian trading, while the yen was marginally firmer at 155.4 per dollar, following two sessions of weakness. Sterling was higher earlier today, changing hands at 1.369 against the dollar, supported by a broadly steadier tone in G10 currencies.

The Australian dollar rose sharply after the Reserve Bank of Australia raised interest rates for the first time in two years and warned that inflation risks remain elevated. The currency was trading around 0.7007 against the US dollar and close to record highs versus the yen during the morning session. The New Zealand dollar also moved higher to 0.6033. By contrast, the yen remained under pressure ahead of Japan’s lower house election this weekend, with investors continuing to pare back positions in Japanese government bonds.

Spot gold rebounded strongly early this morning to $4,855 an ounce after falling to $4,403 late on Monday, following a sharp two-day sell-off linked to higher margin requirements and a shift in expectations for US monetary policy. Silver also recovered, rising to $84.34 an ounce after briefly trading near $71.33 in the previous session. Analysts continued to argue that the broader uptrend in precious metals remains intact despite the violent pullback.

Oil markets were shaped by geopolitical developments rather than price volatility. Washington confirmed it is encouraging India to replace Russian crude with Venezuelan supply as part of a broader trade agreement, while Indian refiners continue to scale back Russian imports. The focus for energy traders remained on how quickly these flows can adjust rather than on near-term price levels.