FTSE 100 roars back after Trump pauses tariffs
The FTSE 100 soared as markets opened this morning after President Donald Trump‘s tariff climb down on Wednesday.
London’s blue-chip index gained over six per cent – an increase of nearly 500 points.
The FTSE 250 climbed over four per cent.
Of the risers, Barclays rocketed over 20 per cent and Melrose 16 per cent.
Listed supermarkets Tesco, Sainsbury and Marks and Spencer were the index’s only three fallers.
This followed the FTSE 100 closing off three per cent yesterday, before Trump sent global markets soaring with a 90-day pause on his ‘Liberation Day’ levies.
Elsewhere, Germany’s Dax gained over seven per cent and France’s Cac 40 over eight per cent.
Wall Street bounced back on Wednesday following the news. The S&P 500 rallied 9.5 per cent and the Dow Jones 7.9 per cent.
The Nasdaq surged over 12 per cent as major tech giants reversed losses. Apple was up 15 per cent and Tesla 22 per cent.
FTSE 100 follows other markets higher
Markets in Asia also jumped on Trump’s announcement.
Japan’s Nikkei gained over eight per cent and Taiwan’s Taiex over nine per cent.
The Shanghai index in China edged up one per cent.
This came as Trump persisted with his relentless trade offensive on China, despite scaling back on other countries.
Trump notched China’s total import tax up to 125 per cent, in a response to Beijing officials slapping a 50 per cent levy on the US taking its total tariff up to 84 per cent.
China vowed to “fight to the end” in its trade war against Trump and accused the US of “bullying practices.”
Marcus Brookes, chief investment officer at Quilter Investors: “It appears Donald Trump cares about what markets think after all.
“Trump is gaining a reputation now for flip flopping on tariffs and not having a consistent economic policy. Even with this latest announcement, we still have the uncertainty from the fact this is just a 90 day pause.”
Brookes added: “The damage is arguably done for the US. Many consumers and businesses cannot plan with any sort of confidence just now and may see a recession hit regardless.”