It’s hard to think it was only last year that London’s blue-chip index climbed above the psychologically important 8,000 mark and stayed there.
It had managed to briefly scale that peak a year earlier but quickly fell back, so watching the FTSE 100 creep closer and closer to 9,000 feels a little surreal. The index closed 108.64 points (1.23%) higher at 8,975.66.
London-based mining stocks have surged today, helping to bolster an index which has been on the front foot for most of the year, if you excuse its post Liberation Day rout.
Glencore climbed 4.11%, Rio Tinto added 4%, Anglo American rose 3.78%, and Antofagasta advanced 1.05%, as the sector recovered alongside stabilising commodity prices.
Investors have had a chance to digest Donald Trump’s [50% hike in] copper tariffs and the surge in prices has certainly created opportunities, at least in the short term.
Generally, investors seem to have been rather dismissive of Trump’s latest tariff tangos, believing that ultimately the US president will back off if negotiations don’t go his way.
The crunch point is likely to be if a US-EU deal can’t get over the line, but even then the assumption seems to be that the new deadline, just like the last, is soft.
Airlines
Wall Street has been more muted after yesterday’s record-breaking run for the Nasdaq and AI darling Nvidia (the first $4 trillion company), but airline stocks have soared today after Delta’s perkier outlook.
Travel demand in the US has slowed as consumer confidence has taken a knock from tariff uncertainty and whilst that weakness looks set to continue, Delta has managed to offset some of the fall in revenues as it leans into premium sales and leveraging loyalty programmes.
Airlines know full well the importance of having as many bums on seats as possible and cutting back the number of flights rather than operating half-empty services looks set to deliver Delta the savings it needs to protect margins.
Other US airlines, and British Airways owner IAG which operates services across the pond, have all been pulled up by Delta’s upbeat outlook and suggestion that things have stabilised when it comes to passenger numbers.
Mulberry
Handbag maker Mulberry has had a tough couple of years, and whilst it might tout the progress of its turnaround plan, sales still look disappointing.
It’s true that all luxury goods makers have struggled with Chinese consumers looking particularly weak and a pool of potential UK shoppers becoming increasingly unavailable to the brand as the cost of living became more expensive. Then there’s the roaring second-hand trade thanks to sites like Vinted, which have made it easy to bag a bargain and then sell it on once you’ve posted that social snap.
The business has taken steps forward to streamline its operations and reduce costs, but it still needed shareholders to turn on the funding taps in order to buy it more time, raising £20 million in the process.
That extra funding seems to have come with a few strings attached, and Mike Ashley’s Frasers Group has now got their man a seat at the table. This suggests that whilst the retail behemoth is happy to stump up the some of the cash, it might want greater involvement in how it will be spent.”
Closing prices
UK stocks followed global peers higher, amid broad optimism for the outlook on US trade tariffs.
US stocks delivered solid gains despite ongoing tariff worries, with both the S&P 500 and Nasdaq Composite closing at fresh record highs.
At the close, the Dow Jones Industrial Average was up 0.43%, while the S&P 500 advanced 0.27% and the Nasdaq Composite saw out the session 0.09% firmer.
Danni Hewson is head of financial analysis at AJ Bell
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