The FTSE 100 index of the most valuable companies on the London Stock Exchange has soared to a record high as investors shrugged off concerns over Donald Trump’s trade wars.
The FTSE 100 had the 9,000-point mark in its sights on Thursday, as it climbed to 8,979 points, above its previous all-time high of 8,908 points.
Stocks rose in London amid a global rally, as traders grew confident that Trump would either reach agreements with US trading partners, or again delay or dial back his threatened tariffs.
Mining stocks led the FTSE 100 risers, with Anglo American, Glencore and Rio Tinto gaining about 3.8%.
Victoria Scholar, the head of investment at Interactive Investor, said: “Commodities are fuelling the gains for the FTSE 100, with copper in the green and gold catching a bid on the back of a weaker US dollar.”
The FTSE 100 ended the day at a new closing high of 8,975 points, a rise of 108.6 points or 1.23% during the day.
The blue-chip share index has now risen by more than 9% during 2025, having recovered from sharp losses in early April when markets tumbled after Trump announced new tariffs on what he called “liberation day”, before recovering after he postponed them.
The precious metals producer Fresnillo has been the top-performing FTSE 100 stock so far this year; its shares are up 140% since 1 January, driven by gains in the prices of gold and silver.
The British defence company Babcock’s share price has doubled so far this year, while the weapons-maker BAE Systems is up 63% year-to-date, helped by expectations of a surge in defence spending as the Russia-Ukraine war continued.
Shares have pushed higher this week despite Trump announcing new tariff rates that will be imposed on imports from 1 August, postponed from a previous date of 9 July.
Chris Beauchamp, the chief market analyst at IG, said investors were in an “ebullient summer mood”.
“Perhaps most notable is the market’s apparent indifference to escalating trade tensions. Trump’s 50% tariff on copper imports and threats toward Brazil triggered little reaction. Many now view such announcements as political posturing, summed up by Taco: Trump always chickens out,” he said.
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Germany’s DAX share index also hit a record high on Thursday. It has gained more than 23% so far this year, lifted by plans from the German chancellor, Friedrich Merz, to increase government spending to drive investment and lift growth.
The FTSE 100 is seen as a gauge of optimism about the world economy, as many of the largest companies listed in London have a global focus.
Susannah Streeter, the head of money and markets at Hargreaves Lansdown, said: “The FTSE 100 is stuffed full of multinationals, which are sensitive to the outlook for the world economy. With the so-called Taco trade in full swing, it’s benefiting from more optimism around.”
She added: “Investors expect that Trump will ‘chicken out’ from imposing his threat.”
