The FTSE 100 (^FTSE) hit a new all-time high on Thursday morning, with the German DAX (^GDAXI), also touching fresh record levels, as traders shrugged off the threat of Donald Trump’s escalating trade war.
The US president confirmed overnight that the 50% copper tariff will come into place on 1 August, and announced a 50% tariff on goods from Brazil.
He accused Brazil of “attacks” on US tech companies and of conducting a “witch hunt” against former far-right president Jair Bolsonaro, who is facing prosecution over his alleged role in a plot to overturn the 2022 election.
The Brazilian Real weakened by 2.29% against the US dollar on the back of the news, its biggest decline since 4 April, but mining stocks are rallying in London, signalling that investors are not concerned about the new tariffs.
Chris Beauchamp, chief market analyst at IG, said investors are in an “ebullient summer mood”. He said:
Trump has so far posted 22 letters to countries around the world this week, including Japan, South Korea and Sri Lanka.
