The FTSE 100 experienced a significant rise, closing 0.6% higher at 8,605, marking its highest level in over a month. This surge was driven by a global equity rally fueled by positive developments in US-China trade relations. Mining stocks and financials with Asian exposure were the main beneficiaries, while pharmaceutical companies lagged.
- The FTSE 100 closed 0.6% higher at 8,605, the highest in over one month.
- The increase was attributed to optimism over US-China trade policy.
- The US and China agreed to a 90-day tariff reduction.
- Miners led the gains, with Rio Tinto, Glencore, Anglo American, and Antofagasta adding between 7% and 3.5%.
- Precious metal miners lost ground due to decreased safe-haven demand.
- Financials with Asian exposure, such as Prudential and Standard Chartered, rose significantly.
- HSBC jumped nearly 4% to become London’s largest market cap.
- Pharmaceuticals underperformed due to US President Trump’s signals to lower drug prices.
The performance of the asset reflects broader market sentiment influenced by international trade agreements. Sectors closely tied to global trade and economic growth, such as mining and financials with significant Asian operations, saw notable gains, demonstrating investor confidence in improved economic prospects. Conversely, sectors sensitive to regulatory changes, like pharmaceuticals, experienced downward pressure. This suggests a market reacting positively to perceived stability and growth opportunities while remaining cautious towards potential policy risks.