FTSE 100 Breaks Records as “Trump Retreat” Theory Drives Investor Confidence

The FTSE 100 has shattered its previous record, soaring to an all-time high of 8,979 points, driven by burgeoning investor confidence in a potential “Trump retreat” from his hardline tariff policies. The London stock market’s ascent, nearing the significant 9,000-point mark and surpassing its earlier peak of 8,908, underscores a strong belief that trade tensions will ease.
This rally is not an isolated event but rather a reflection of pervasive optimism across global markets. Traders are increasingly convinced that Donald Trump will either defer his threatened tariffs or successfully negotiate compromises with key trade partners, effectively defusing the threat of a damaging international trade war. These expectations are fueling widespread buying activity.
The positive market sentiment has translated into robust gains across various industries, with the mining sector showing particular strength. Leading miners such as Anglo American, Glencore, and Rio Tinto recorded impressive gains of nearly 4%. Contributing to this surge were rising commodity prices, notably copper and gold, coupled with the beneficial effect of a softer US dollar.
Despite the public announcement of new tariffs by Trump, set to commence on August 1st, markets have maintained their upward trajectory. Analysts attribute this resilience to what they term the “Taco trade”—a consistent pattern observed in Trump’s past actions where initial aggressive stances often give way to more pragmatic, market-friendly resolutions.