FTSE 100 Hits New Record High Above 9,000 Points

Britain’s blue-chip stock index, the FTSE 100, has reached a new record high by surpassing the 9,000-point mark. The index hit 9,016.98 points in early trading on Tuesday, marking a gain of over 10% in 2025. Analysts attribute this rise to various factors, including investors diversifying away from US shares due to concerns over Donald Trump’s economic policies. The US president’s trade war has also benefited UK stocks, as the country secured a trade deal with lower tariffs.

The UK stock market is known for its stability and reliability, offering a safe haven for investors amidst global uncertainties. The market's focus on established companies has been an advantage during uncertain times. Analysts believe that the UK's trade relations advantage with the US further strengthens its position in the global market.

Despite the choppy conditions created by Trump’s trade war, the FTSE 100 index has shown resilience. The index experienced fluctuations throughout the year but recovered, driven by the 'Taco trade' sentiment. Companies like Fresnillo, Babcock, BAE Systems, and Rolls-Royce have seen significant share price increases due to various factors such as rising metal prices and increased military spending.

John Moore, a wealth manager, highlighted the strong earnings momentum in the banking and defence sectors as key drivers of the FTSE 100's record high. He also mentioned the UK's relative political stability as a positive factor contributing to investor confidence.

According to the source: The Guardian.