FTSE 100 Hits All-Time Peak Amid Trump Tariffs and Strong Earnings

Strategic Insights -

The London stock market continues to show strength, shrugging off US President Donald Trump's latest tariff moves. The FTSE 100 index closed at an all-time high of 8,975.66 on Thursday, fueled by gains in mining stocks and strong earnings from companies like Anglo American and Glencore. Investors seem to be focusing on economic data and corporate news flow as key drivers for markets, rather than Trump's daily tariff updates.

Key Takeaways:

  • The FTSE 100 index closed up 108.64 points, 1.2%, at 8,975.66, surpassing the previous record of 8,908.82 set in March.
  • Mining stocks climbed on the back of Trump's announcement of a 50% copper tariff, with Anglo American rising by 3.8%, Glencore by 3.9%, and Rio Tinto by 4.0%.
  • Investors are shrugging off Trump's tariff moves, with Dan Coatsworth of AJ Bell saying they are seeing them as "noise and not facts".
  • British American Tobacco rose 3.0% after Citi reiterated a "buy" rating and raised its share price target to 3,900 pence from 3,600p.
  • IAG advanced 2.1% after well-received results from US peer Delta Air Lines, which jumped 13%.
  • Insurer Legal & General gained 0.2% after it announced a private credit partnership agreement with Blackstone.
  • WPP rallied 1.1% after naming Microsoft executive Cindy Rose as its new chief executive.

Statistics:

  • The FTSE 100 index closed up 108.64 points, 1.2%, at 8,975.66.
  • The FTSE 100 had traded as high as 8,979.41, surpassing the previous record of 8,908.82 set in March.
  • Anglo American rose by 3.8%, Glencore by 3.9%, and Rio Tinto by 4.0% on Thursday.
  • The pound was quoted at 1.3561 dollars at the time of the London equities close on Thursday, lower compared to 1.3583 dollars on Wednesday.
  • The euro traded lower at 1.1679 dollars, against 1.1706 dollars.

Sources:

  • "The UK stock market continues to flex its muscles and show strength. Investors lapped up shares in the mining, oil and pharmaceutical sectors, showing a risk-on mood," - Dan Coatsworth of AJ Bell, cited in FT.
  • "For investors, that means a shift in focus back to economic data and corporate news flow as key drivers for markets," - Dan Coatsworth of AJ Bell, cited in FT.
  • "We are seeing a shift in focus back to economic data and corporate news flow as key drivers for markets," - John Meyer at SP Angel, cited in FT.
  • "The partnership will combine the strength of L&G and Blackstone's respective credit platforms to enhance L&G's competitive advantage in annuities and bolster its asset management proposition in key geographies and channels," - Legal & General, cited in FT.