UK (Parliament Politics Magazine) – UK’s FTSE 100 has surged past 9,000 to a record high, driven by investor retreat from US stocks amid Trump’s tariffs, boosting confidence in UK markets.
As reported by The Guardian, London’s FTSE 100 broke the 9,000 mark for the first time. The Tuesday trading saw the FTSE 100 rise to 9,016.98 points. Its year-to-date gains in 2025 now exceed 10%.
According to market analysts, a range of factors has driven gains in London’s stock markets, including investor shifts away from US markets amid concerns over Trump’s trade and fiscal policies.
What did Dan Coatsworth say about the UK’s trade edge?
Dan Coatsworth, AJ Bell investment analyst, stated,
“With the UK having already reached an agreement on a 10% tariff for trade with the US, with exemptions for certain industries, the country is now seen to have an advantage in terms of trade relations.”
He added,
“The UK stock market is the calming cup of tea and biscuit in an uncertain world. There’s nothing fancy on offer, just reliable names that do their job day in, day out. That’s an underrated characteristic and a reason why investors are finally warming to the UK stock market’s appeal in 2025.”
What did John Moore say about the FTSE 100 surge?
According to RBC Brewin Dolphin’s John Moore, strong gains in the defence and banking sectors have played a key role in driving the FTSE 100 to new heights.
He stated,
“While the index’s composition had been a brake on its progress compared to other markets, now it is providing a tailwind, with strong earnings momentum in the banking and defence sectors, in particular, supported by the likes of some of the larger operators in other industries such as Next, Tesco, and National Grid.”
Mr Moore said,
“Currency has also played a role, though its impact is likely to fluctuate over time. If UK earnings grow by, say, 7-8 per cent, but the pound moves 2-4 per cent relative to the dollar, then you can meet or exceed what you might reasonably expect from the US market with the added benefit of sectoral and stylistic diversification in your investment.”
He stated,
“At the same time, the UK still offers robust income and optionality. That may have been out of favour in recent years, but the cash flow can be helpful in terms of managing a portfolio and providing a form of income beyond cash yields and bonds.”
Mr Moore said,
“And, while resource companies, which often produce a reasonable level of income, haven’t been working out recently, that could turn and provide some cyclical upside along with some indirect exposure to China.”
The RBC’s manager stated,
“A number of UK companies have been taking self-help measures, with lots refining their portfolios and buying back shares. Oxford Instruments is a prime example, selling a non-core asset at a good price and then undertaking a £50 million share buyback programme. The likes of Hiscox and DCC have done similarly, and it is becoming more universal.”
He added,
“Finally, the UK offers relative political stability compared to other parts of the world at present. While there may be tax increases to come, which was part of the reason for the sell-off of the pound in early June, the government has a clear mandate and tenure for the next few years. That compares favourably to other parts of Europe, even, where coalition governments are having a tough time.”
Why London’s “Jurassic Park” market is now a safe bet?
London’s stock market has been dubbed a “Jurassic Park” index because it depends on traditional industries and lacks fast-growing tech firms.
Despite this, its stability has become an advantage during times of uncertainty.
FTSE 100’s volatility in 2025
President Trump’s trade war has triggered financial market volatility in 2025. The FTSE 100 plunged to 7,544 points in early April after tariff announcements triggered a sell-off. It later bounced back strongly as traders bet on the “Taco trade,” expecting Mr Trump to back down if markets panic.
The FTSE 100’s top performer so far this year is Fresnillo, up 155%. The company benefits from rising precious metal prices. Gold hit record highs, and silver reached a 14-year peak this week.
Key facts about the FTSE 100
- The UK’s top 100 biggest companies on the London Stock Exchange.
- Covers 70% of the UK market value; affected by currency changes.
- Started at 1,000 in 1984; hit nearly 9,000 in 2025.
- Tracks the UK market for investors
