FTSE 100 hits fourteen straight days of gains amid trade easing

On May 2, 2025, London's FTSE 100 index demonstrated remarkable growth by rising 0.8% at 1:00 p.m. in the U.K., placing it on track for an unprecedented consecutive streak of daily gains. This impressive feat follows a record of fourteen back-to-back sessions of increases observed before lower tariffs were imposed by the U.S. government, during which the index also reflected a year-to-date increase of 4.8%. The previous instance of fourteen consecutive gains had occurred in 2017. Contributing factors to the index's upward trajectory included the easing of U.S.-China trade tensions, which removed existing tariff threats that significantly impacted market confidence. The U.K. has maintained a neutral trade status compared to the punitive levies faced by the European Union and China, helping English equities like SSP Group, Haleon, and Melrose Industries experience significant gains on this day. Vice President JD Vance noted the potential for a favorable trade deal between the U.K. and the U.S., further promoting confidence in London's market. Investor sentiment was bolstered by strong corporate performance from various companies, with Whitbread and Entain reporting robust earnings amidst a resilient U.K. economy that has registered a 1.5% annualized growth rate. However, although the index is witnessing significant gains, analysts have pointed out that it remains undervalued compared to global peers. There are also concerns about the FTSE 100 being overbought, suggesting possible pullbacks yet to come. Despite these concerns, expectations are high that with multiple anticipated interest rate cuts from the Bank of England combined with the index not yet regaining levels seen prior to the introduction of the tariffs, the FTSE 100 could rise to as high as 8,900 points by the end of next month. The present market conditions suggest that the FTSE 100 could continue taking advantage of the current volatility witnessed in U.S. equity markets, providing an interesting opportunity for British capital markets and highlighting a potential reversal of a trend lost in recent years.