The FTSE 100 hit a record yesterday as European markets rallied on hopes of peace in Ukraine.
London’s index of blue-chip stocks ended the session up 0.3 per cent at 9189.22 – its highest ever close.
The rally came after Donald Trump held talks with Ukrainian president Volodymyr Zelensky and European allies, including Keir Starmer, at the White House.
The US President said he has begun arranging talks between Zelensky and Russian leader Vladimir Putin, sparking hopes of an imminent end to the conflict after more than three years of war.
In London, the FTSE 100 – which has gained more than 12 per cent this year – was boosted by retail stocks, offsetting a defence sector drop.
And the mid-cap FTSE 250 rose 0.4 per cent, snapping a three-day losing streak. In Europe, the CAC 40 in Paris rose 1.2 per cent, while Germany’s DAX 40 closed up 0.5 per cent.
Peace summit: US President Donald Trump (right) said he has begun arranging talks between Ukrainian president Volodymyr Zelensky and Russian leader Vladimir Putin (left)
Meanwhile, oil prices slumped on investor expectations that a peace deal will likely lead to an easing of sanctions on Russia.
Despite the stock market rally, London-listed defence giants took a hit on signs that the conflict in Ukraine could come to an end.
The companies have been boosted as European leaders raced to rearm amid conflicts in Ukraine and the Middle East.
Babcock International fell 7.4 per cent, BAE Systems dropped 3.9 per cent and Rolls-Royce lost 2.1 per cent.
But the losses were offset by retailers, which made big gains despite news of a delay to official sales data.
JD Sports jumped 6.8 per cent following an upbeat statement from protein powder seller Applied Nutrition, which is backed by the sportswear chain.
Shares in Marks & Spencer rose 3.5 per cent and Next shares were up 3 per cent.
Danni Hewson, head of financial analysis at broker AJ Bell, said: ‘Far from the adversarial and uncomfortable scenes in the White House earlier this year, the dynamic between the presidents of the US and Ukraine was positive, even friendly.’
‘There seems to have been a shift and there may be a feeling that if the fighting ends, the requirements for additional armaments could end with it, although any peacekeeping forces will need kitting out appropriately.’
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