- FTSE 100 has broken through the psychologically important 8600 mark.
- Gold inches up above 2781 an ounce, closer to records, as investors seek safe havens.
- The footsie’s defensive characteristics are a draw for investors amid market volatility.
Susannah Streeter, head of money and markets, Hargreaves Lansdown:
“The footsie has cruised to a fresh all-time high, breaking past the psychologically important 8,600 mark, as investors seek shelter in its defensive qualities, amid market volatility. With an unpredictable President Trump back at the White House, and tariff threats left hanging, there’s more demand for assets which offer more reliable returns, and the dividend-strong FTSE 100 is coming into its own. Even a dip back in the oil price hasn’t put energy giants BP and Shell off their stride, and the prospect for lower fuel costs has given a tailwind to easyJet’s share price. Corporate updates have helped propel the index higher, with Airtel Africa climbing to the top of the leaderboard, thanks to a jump in quarterly revenue and profit.
Gold is also glittering as a ‘safe haven’ asset, and its climb up towards fresh records has boosted sentiment for gold miner Endeavour Mining.Trump’s trade policies are forecast push up US consumer prices, increase inflation, and lead to interest rates staying higher for longer. Gold is seen as a hedge against inflation, and a safer refuge amid volatility. The gyrations on US stock markets, caused by shock progress of Chinese AI firm DeepSeek, may also have helped gold’s glittering run upwards this week.The tech-light nature of the FTSE 100 also gives it insulation from the cold air blasting over the chip industry over the risks posed to Silicon Valley dominance.’’
