London’s benchmark FTSE 100 index has scaled new heights, closing at an all-time high of 8,979 points. This impressive surge reflects a growing confidence among investors who appear largely unfazed by Donald Trump’s renewed threats of tariffs, instead betting on his eventual de-escalation. The index is now eyeing the psychological 9,000-point threshold, having comfortably surpassed its prior record of 8,908.
This robust performance in London is indicative of a wider positive sentiment pervading global equity markets. Investors are increasingly taking a “wait and see” approach to Trump’s tariff pronouncements, anticipating that he will either postpone their implementation or enter into trade deals that avert a major economic confrontation. This expectation of diplomatic resolution is fueling bullish momentum.
The rally has been particularly beneficial for the mining sector, with major players such as Anglo American, Glencore, and Rio Tinto registering gains of approximately 4%. The upswing in these commodity-dependent stocks is underpinned by rising global commodity prices, notably copper and gold, which have been made more appealing by a depreciation in the US dollar.
Despite the former President’s explicit announcement of new tariffs set to take effect on August 1st, market participants remain remarkably optimistic. This resilience is attributed to what market observers term the “Taco trade”—a widely held belief, based on past precedents, that Trump’s aggressive rhetoric often gives way to a more pragmatic approach, ultimately benefiting trade and markets.