Weed Stocks Jump After Trump’s cannabidiol Post

Major cannabis stocks got a boost from US President Trump posting on social media about the health benefits of cannabidiol. Asian shares shrugged off trade concerns, with MSCI’s ex-Japan index extending its best monthly gain in a year, while China and Japan posted weak factory data. European equity futures traded slightly lower, and US S&P 500 futures were flat ahead of key labour reports.

Equities

The FTSE 100 edged up 0.2% and the FTSE 250 gained 0.9% on Monday, lifted by financials, insurers, healthcare, and housing shares.

GSK advanced after announcing CEO Emma Walmsley will step down in favour of insider Luke Miels, while Berkeley rose following the appointment of Neil Eady as CFO.

Mining stocks also strengthened, tracking record gold prices on the back of U.S. rate-cut expectations and worries over a possible U.S. government shutdown, which could stall the release of key economic data.

On Monday, Chancellor Rachel Reeves reiterated her commitment to fiscal discipline, while BoE Deputy Governor Dave Ramsden noted easing labour market pressures and moderating wage growth, bolstering confidence that inflation will return to target and interest rates may be lowered.

Data released this morning showed UK GDP rose 0.3% in the second quarter, in line with expectations.

On Wall Street, indices closed higher on Monday. The Dow Jones rose 0.15% to 46,316.07, the S&P 500 added 0.26% to 6,661.21, and the Nasdaq gained 0.48% to 22,591.15.

The strongest moves came from US technology and consumer stocks. Nvidia closed 2% higher, adding to its run as the leading AI chipmaker, while Microsoft ended the session up 0.6%. AppLovin set a fresh record before closing 6.3% higher at $712.36 after Morgan Stanley lifted its target price to $750 from $480.

Cannabis shares surged after President Donald Trump released a video on Sunday backing the health benefits of cannabidiol. Tilray Brands jumped 60.9% to $1.85, Canopy Growth rose 17% to $1.57, and Cronos Group gained nearly 13% to $2.97 by Monday’s close.

Electronic Arts advanced 4.5% after agreeing a $55 billion take-private deal, which some investors viewed as a sign of renewed strength in mergers and acquisitions.

Forex & Commodities

The US dollar slipped as traders focused on the risk of a government shutdown that could delay the release of September’s payrolls report. The broader dollar index stood at 97.93, down nearly 10% so far this year. Sterling was steady at $1.344, while the euro traded marginally lower at $1.172.

The Australian dollar moved higher to $0.6608 after the Reserve Bank of Australia left interest rates unchanged, noting inflation pressures could prove stronger than expected. The yen edged weaker to 148.7 per dollar following Bank of Japan minutes showing some policymakers had argued for a rate rise.

Spot gold rose 0.9% early on Tuesday to $3866 per ounce, extending September’s gain to 12.1%, the strongest monthly rise since 2011. Investor demand has lifted holdings in the SPDR Gold Trust to 1011.7 tonnes, the highest level in more than three years. Silver traded at $47.05 per ounce, higher for the month by nearly 19%, while platinum slipped to $1593 and palladium eased to $1266.

Oil prices weakened further on Tuesday morning after heavy falls at the start of the week. Brent crude for November delivery slipped to $67.69 a barrel before expiry, with the December contract at $66.76. West Texas Intermediate traded at $63.16. Monday’s losses of more than 3% were the steepest since early August, as traders reacted to news of resumed crude exports from Iraq’s Kurdistan region and expectations that OPEC+ will confirm a production increase at its weekend meeting.