- The FTSE 100 has hit a new intraday high of 8965
- It follows a strong session on Wall Street, where the Nasdaq hit an all-time high.
- The Dow Jones Industrial Average also closed up 0.5%.
Susannah Streeter, head of money and markets, Hargreaves Lansdown:
‘’The Footsie is footloose, shrugging off trade worries to dance to an all-time high. Even a fresh volley of tariff letters from President Trump has failed to knock investors sentiment. The President’s latest moves are seen as posturing, and there is high expectation that there will be plenty of negotiations to head off higher duties in the weeks ahead. Indications that the EU is edging closer to a deal with the US, with an agreement thought to be possible in a few days, has added to the positive vibes. So, hopes are riding high that the effects on global growth won’t be as onerous as feared.
The FTSE 100 is stuffed full of multinationals which are sensitive to the outlook for the world economy and with the so-called ‘TACO trade’ in full swing, it’s benefiting from more optimism around. Investors expect that Trump will ‘chicken out’ from imposing his threat. Miners 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. There’s a lot of second guessing going on. Trump has underlined copper’s strategic importance and critical for security, so the expectation is that he ultimately won’t want US manufacturers to pay inflated prices for this key component for crucial infrastructure like semiconductors data centres, radar systems and missile defence.
But the unpredictable nature of US policy is also helping the FTSE 100. Its defensive characteristics are a draw, and investors have been piling into stocks they see as potentially more resilient amid the turbulence, like tobacco giant Briths American and global drinks company Diageo.”
