FTSE 100 hits record high amid investor optimism over trade tensions
- The FTSE 100 index achieved an intraday record of 8,967.21 points, marking a gain of 100 points or 1.1%.
- Mining and commodity stocks significantly contributed to the index's rise amidst easing global trade tension concerns.
- Investor sentiment remains largely positive as concerns over U.S. tariff threats are dismissed as 'noise'.
On Thursday, July 10, 2025, the UK’s top stock index, the FTSE 100, achieved a remarkable new intraday record, soaring to 8,967.21 points. This significant rise of as much as 100 points or 1.1% marks a departure from previously heightened concerns regarding global trade tensions, demonstrating a shift in investor sentiment. Analysts attribute this upward trend to positive feelings among investors, who have chosen to disregard recent tariff threats from the U.S. government, suggesting that many view these as mere noise rather than serious issues. The increase was notably driven by stocks in the mining, oil, and pharmaceutical sectors, indicating a strong appetite for equities despite the surrounding uncertainties. Major companies such as Anglo American, Glencore, and Rio Tinto led the gainers, showcasing the resilience of the UK market in uncertain times. Meanwhile, the FTSE 250 index and AIM 100 index also experienced positive movements, reaffirming the prevailing optimistic sentiment. As analysts provide context, they note the tendency of European markets, and especially the FTSE, to remain unfazed by U.S. tariff updates. Dan Coatsworth from AJ Bell remarked that there’s a clear risk-on mood reflected in the investments, reinforcing the possibility that investors believe that U.S. President Donald Trump might backtrack on his tariff threats. Susannah Streeter from Hargreaves Lansdown further articulated this view, stating that the multinational nature of the FTSE 100 renders it sensitive to global economic conditions and that optimism is currently bolstered by expectations of Trump retracting his more aggressive stances. The surge in mining stocks coincided with record copper prices, suggesting a favorable short-term outlook for major producers as fears surrounding long-term import taxes taper off. Additionally, the value of the pound against the U.S. dollar has shown a slight increase, inching closer to its three-year high achieved earlier this month. This overall wave of positive sentiment in the markets reflects a broader shift as investors adapt to fluctuating economic indicators and political developments in the U.S.