FTSE 100 jumps to new record high as investors shrug off tariff woes
The FTSE 100 struck a new record high on Thursday as shares rallied on the back of easing concerns over global trade tensions.
The UKโs top stock index jumped by as much as 100 points, or 1.1%, to a new intraday record of 8,967.21 points, surpassing the previous high of 8,908.82 set in March.
Mining and commodity stock particularly helped drive the sharp rise, as investors shrugged off concerns that US tariff rules could contribute to a global recession.
Anglo American, Glencore and Rio Tinto were among the top risers on the FTSE 100 as a result.
Meanwhile, the FTSE 250 index and AIM 100 index were also higher, rising 0.32% and 0.24% respectively during early trading due to the wave of positive sentiment.
Analysts have partly linked the uplift to dismissing recent US tariff announcements as โnoiseโ after a number of policy reversals by US President Donald Trump.
Dan Coatsworth, investment analyst at AJ Bell, said: โInvestors lapped up shares in the mining, oil and pharmaceutical sectors, showing a risk-on mood.โ
โEuropean markets in general continue to shrug off Donald Trumpโs daily tariff updates, perhaps seeing them as noise and not facts.
โTrump is throwing out numbers left, right and centre, and investors have begun to dismiss anything that isnโt set in stone.โ
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: โThe FTSE 100 is stuffed full of multinationals which are sensitive to the outlook for the world economy and with the so-called โTACO tradeโ (Trump Always Chickens Out) in full swing, itโs benefiting from more optimism around.
โInvestors expect that Trump will โchicken outโ from imposing his threat.
โMiners have roared back to life, topping the index; copper prices have hit record levels, which will benefit major producers in the short-term, while fears about a longer-term tax on imports appear to be receding.โ
Elsewhere, the value of the pound ticked 0.17% higher against the US dollar to 1.360, moving closer to the three-year-high it struck earlier this month.
