Traders’ confidence that Trump will not follow through on his threats to impose tariffs pushed the London Stock Exchange index to 8,979 points
The FTSE 100 index, which includes the most valuable companies on the London Stock Exchange, rose to a record high as investors shrugged off concerns about Donald Trump’s trade wars.
On Thursday, the FTSE 100 index approached the 9,000 mark, rising to 8,979 points, exceeding its previous record of 8,908 points.
Shares in London rose amid a global rally as traders became confident that Trump would either reach agreements with US trading partners or again delay or cancel the threat of tariffs.
Mining companies led the FTSE 100 gains, with Anglo American, Glencore and Rio Tinto rose by around 3.8%.
Victoria Skolar, head of investment at Interactive Investor, said: “Commodities are driving the FTSE 100 higher, with copper in positive territory and gold rising on a weaker US dollar.”
The FTSE 100 ended the day at a new record high of 8,975 points, up 108.6 points, or 1.23%, on the day.
The blue-chip index has risen more than 9% in 2025, recovering from sharp losses in early April when markets slumped after Trump announced new tariffs as part of his so-called “freedom day,” then rebounded after he delayed their implementation.
Precious metals producer Fresnillo has been the FTSE 100’s top performer this year, with its shares rising 140% since January 1 amid rising gold and silver prices.
Shares in British defense company Babcock have doubled this year, while arms manufacturer BAE Systems’ shares have risen 63% since the start of the year on expectations of increased defense spending amid the ongoing war between Russia and Ukraine.
Shares rose this week despite Trump’s announcement of new import tariffs from August 1, which were postponed from July 9.
Chris Beauchamp, chief market analyst at IG, said investors were in an “euphoric summer mood.”
“Perhaps most notable is the market’s apparent indifference to escalating trade tensions. Trump’s 50% tariff on copper imports and threats against Brazil have elicited a muted response. Many now view such statements as political posturing, which Taco summed up as: Trump always backs down,” he said.
The German DAX index also hit a record high on Thursday. It has risen more than 23% since the start of the year thanks to German Chancellor Friedrich Merz’s plans to increase government spending to stimulate investment and economic growth.
The FTSE 100 is considered an indicator of optimism about the global economy, as many of the largest companies listed in London are globally oriented.
Suzanne Stritter, head of money and markets at Hargreaves Lansdown, said: “The FTSE 100 is full of multinational companies that are sensitive to the outlook for the global economy. With so-called ‘Taco trade’ in full swing, it is benefiting from more optimistic sentiment.”
She added: “Investors expect Trump to ‘back down’ and not follow through on his threats.”
