- FTSE 100 hits new intra-day high above the 9,000 mark for the first time
The FTSE 100 rose above the 9,000 mark for the first time on Tuesday morning after Brexit Britain was branded a ‘clear winner’ in Donald Trump’s trade war.
In a boost for investors with money tied up in shares through their pensions and other savings, the blue-chip index climbed 0.2 per cent to a record high of more than 9,002 after adding 0.6 per cent in the previous session.
The FTSE 100 has now added around 9 per cent since the start of a volatile 2025, which has seen London’s premier index broadly outperform most global peers.
John Moore, wealth manager at RBC Brewin Dolphin, highlighted the FTSE 100’s exposure to in-demand stocks within the banking and defence sectors as well as ‘larger operators in other industries such as Next, Tesco, and National Grid’.
He also pointed to the relative strength of the pound this year and the UK market’s ability to offer ‘robust income and optionality’.
Moore said: ‘The UK [also] offers relative political stability compared to other parts of the world at present.
‘While there may be tax increases to come, which was part of the reason for the sell-off of the pound in early June, the government has a clear mandate and tenure for the next few years. That compares favourably to other parts of Europe, even, where coalition governments are having a tough time.’
Record run: In a boost for investors, the blue-chip index climbed to a record high of 8999.22 before closing up 0.6% at 8998.06
Trade war winners and losers
Monday’s gains in London came as shares in Europe fell with the Dax down 0.4 per cent in Frankfurt and the Cac off 0.3 per cent in Paris after the US president threatened to slap 30 per cent tariffs on goods imported from the EU.
This compares with a 10 per cent tariff on most imports to the US from the UK – with British cars and aerospace goods getting no extra levies at all thanks to a trade deal with Trump.
Analysts said UK stocks should outperform those in Europe thanks to the deal which has been hailed a ‘Brexit dividend’.
Meanwhile, European leaders warned trade between the EU and US will be ‘almost impossible’ if 30 per cent tariffs are imposed on August 1 as planned.
German and French bond yields rose as investors fretted over the prospect of a transatlantic trade war between the US and EU.
‘Trump’s tariffs on the EU have one clear winner: the UK,’ wrote Panmure Liberum research analyst Joachim Klement in a report.
And in a message to investors, he added: ‘As the world stands today, there is one clear recommendation: Buy UK.’
The report noted ‘a significant arbitrage opportunity’ for European firms to ‘ship goods from the EU to the UK, slightly alter them in the UK to turn them into “Made in the UK” goods and then ship them to the US’.
It said this ‘could boost the UK economy’ as firms invest in factories and warehouses. Klement said: ‘It could turn the UK into a long-term winner from the trade war.’
Accountancy and business advisory group Lubbock Fine also said Britain’s ‘substantial tariff advantage’ could see European manufacturers relocating to the UK to avoid the 30 per cent levy.
‘The UK could be a big indirect winner,’ said Lubbock Fine partner Alex Altmann, who is also vice president of the British Chamber of Commerce in Germany.
He added: ‘If the tariff rate for the EU finally ends up anywhere near this 30 per cent level then the UK’s much lower US tariffs would offer a major incentive for EU companies to shift some of their manufacturing to the UK or to expand their existing UK facilities.’
European trade ministers held crisis talks yesterday as they scramble to secure an agreement with Trump to avoid the punishing levies.
EU trade commissioner Maros Sefcovic said: ‘If you’re talking about 30 per cent or 30 per cent-plus, there will be a huge impact on trade. It will be almost impossible to continue trading as we are used to in a transatlantic relationship.’
The bloc is preparing a fresh round of retaliatory tariffs on US goods worth more than £60billion if a trade deal cannot be salvaged.
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