Nestle CEO exit, gold tops $3,500, dollar steadies

Nestle dismissed CEO Laurent Freixe after just one year for failing to disclose a relationship with a subordinate, deepening leadership turmoil after shares fell more than 17% over the past year. Gold surged past $3,500 per ounce on Tuesday, setting a fresh record before easing back to $3,488, while silver and platinum also held near multi-year highs. The US dollar index lifted to 97.87 after touching a five-week low on Monday, with sterling at $1.353 and the euro at $1.169.

Equities

London’s blue-chip FTSE 100 closed 0.1% higher on Monday, recovering slightly after last week’s sharp pullback. The FTSE 250 also rose 0.1%. Gains were led by precious metal miners and defence stocks, though losses in utilities held the market back.

Defence names benefited after Norway confirmed Britain as its strategic partner for a £10 billion frigate programme. BAE Systems rose 1.9% by the close, Babcock advanced 2.1% and Rolls-Royce added 2.8%. Precious metal miners tracked stronger gold prices. Hochschild Mining climbed 6.7%, Fresnillo rose 2.1% and Endeavour Mining was up 3.5%.

Banking shares made modest gains following steep losses late last week when a think tank suggested an additional levy on lenders. NatWest closed 1.2% higher on Monday while Barclays gained 1.9%. Utilities were weaker. SSE fell 3.1%, National Grid slipped 2.1% and United Utilities dropped 2.5%. Elsewhere, IT services group Kainos surged 22.5% after issuing an upbeat annual outlook, topping the mid-cap index. Domino’s Pizza rose 8.8% after announcing a new share buyback alongside a reaffirmed earnings forecast.

A survey on Monday showed UK manufacturing activity weakened again in August, with new orders falling amid trade concerns and tax policy changes.

In the United States, markets were closed for a holiday, leaving trading volumes thin globally. However, late on Friday a US appeals court ruled that most of Donald Trump’s tariffs were unlawful, though they will remain in place until mid-October to allow for appeals. Trump pledged to escalate the matter to the Supreme Court, with reports suggesting his administration is preparing fallback measures to keep tariffs in place.

Forex & Commodities

The US dollar strengthened in Asian trading on Tuesday, recovering from a five-day losing streak. The dollar index was last at 97.87, rebounding after touching its lowest since late July on Monday. Against the yen, the dollar rose to 147.8 after comments from Bank of Japan Deputy Governor Ryozo Himino suggested the central bank remained cautious about further rate rises. The euro slipped to $1.169, while sterling eased to $1.353, down from a two-week high reached on Monday. The Australian dollar traded at $0.6538, slightly lower, while the New Zealand dollar also moved down to $0.5884.

Gold extended its rally, breaking through $3,500 per ounce for the first time in Asian trading. Spot prices hit a record $3,508 before easing to $3,488 by mid-morning, marking a sixth straight daily gain. Silver hovered close to its highest level since 2011, last at $40.64. Platinum rose to $1,413, while palladium slipped to $1,129. Precious metals have been supported in recent days by growing expectations of lower US interest rates, with traders currently assigning a high probability to a cut at the Federal Reserve’s meeting later this month.

Oil prices were also firmer on Tuesday. Brent crude added to $68.52 per barrel by early morning, while West Texas Intermediate crude traded at $65.02, supported by concerns over Ukrainian drone strikes that shut down around 17% of Russia’s refining capacity. With US markets reopening after the Labor Day holiday, traders are turning to a series of August economic releases this week, including manufacturing and services surveys and Friday’s non-farm payrolls, for clearer signals on the Fed’s policy path.