The FTSE 100 has broken new barriers, reaching an all-time high of 8,979 points, as global markets increasingly view Donald Trump’s trade threats as temporary. This historic surge in the British index, placing it within striking distance of the 9,000 mark, signifies a collective conviction that the current trade tensions are not indicative of a long-term economic shift.
Traders are largely interpreting Trump’s aggressive rhetoric as a fleeting tactic designed for short-term negotiation rather than a permanent alteration of international trade policy. This widespread belief has generated a strong wave of confidence, spurring significant buying activity across various market sectors, with a particular focus on commodity-linked companies.
The rally has been spearheaded by major mining stocks, including industry heavyweights such as Rio Tinto and Anglo American. These companies are benefiting from robust global demand for raw materials, further amplified by the advantageous impact of a weakening U.S. dollar, which enhances the competitiveness and appeal of British commodities for foreign buyers.
Even with the ongoing element of trade uncertainty, investors appear resolute in their belief that diplomacy will ultimately prevail over protectionist measures. This firmly bullish outlook has successfully transformed potential market anxieties into tangible opportunities for growth, catapulting British stocks into unprecedented, record-setting territory.