London’s FTSE 100 Hits New Peak, Betters on Trump’s Trade U-Turn

The FTSE 100 has defied trade tensions, soaring to a fresh all-time high of 8,979 points, as investors confidently bet on a potential trade U-turn from Donald Trump. The London stock market’s robust performance, now eyeing the 9,000-point psychological barrier and exceeding its previous record of 8,908, highlights a prevailing sense of optimism.
This bullish trend is echoed across global markets, where traders are increasingly anticipating that Trump will either postpone the implementation of his aggressive tariffs or secure beneficial trade agreements. These expectations are effectively quelling fears of an escalating trade war, which has historically rattled investor confidence.
The rally has been particularly advantageous for major mining companies, with Anglo American, Glencore, and Rio Tinto all experiencing gains close to 4%. The uplift in these heavyweights has been further supported by a general increase in commodity prices, with copper and gold showing particular strength. A weaker US dollar has also provided an additional tailwind.
Despite Trump’s recent announcement of new tariffs scheduled for August 1st, the market’s response has remained remarkably positive. This resilience is widely attributed by analysts to the “Taco trade” phenomenon—a market theory based on Trump’s historical tendency to announce stringent measures only to later ease or retract them, a pattern investors are now betting on.