FTSE 100’s Historic Climb: Investors Bet on Trump’s Tariff Capitulation

The FTSE 100 has achieved a historic milestone, surging to an all-time high of 8,979 points. This remarkable climb in the London stock market, now nearing the 9,000-point threshold and eclipsing its previous record of 8,908, is being driven by strong investor belief that Donald Trump will ultimately capitulate on his aggressive tariff threats.
This significant rally is not confined to the UK but reflects a pervasive sense of optimism across global financial markets. Traders are placing substantial bets on the likelihood that Trump will either postpone the implementation of his announced tariffs or successfully reach agreements with key trading partners, thereby mitigating the risk of widespread trade conflict.
The positive market sentiment has led to substantial gains across various sectors, with mining stocks particularly prominent. Leading miners such as Anglo American, Glencore, and Rio Tinto all recorded impressive increases of close to 4%. The upward momentum in these shares was further buoyed by rising commodity prices, notably copper and gold, alongside a weakening US dollar which enhanced their appeal.
Despite Trump’s recent announcement of new tariffs slated for an August 1st commencement, the market has demonstrated remarkable resilience. Analysts largely attribute this unwavering confidence to the “Taco trade”—a widely observed pattern where Trump’s initial hardline stances on trade are often followed by a strategic retreat or negotiation, a outcome investors are now banking on.