The FTSE 100’s recent performance has sent ripples through global financial markets, as it recorded its seventh consecutive day of gains on Tuesday, marking its best winning streak in two years. Closing at 8328.60 with a 0.64 per cent increase, this momentum comes as investor concerns regarding the prolonged trade wars between major economies have started to dissipate.
Key Performers and Market Dynamics
Among the top performers was distribution giant Bunzl, which rose by 3.58 per cent. This rise is particularly noteworthy given the company’s earlier dip in the session following a less-than-stellar first quarter. On the flip side, the healthcare firm DCC witnessed a significant loss of 4.54 per cent after announcing the sale of its healthcare division for £1.1bn. Despite these fluctuations, the overall rally of the FTSE 100 in the past week has managed to reverse some of the losses it incurred earlier, particularly in the wake of former US President Donald Trump’s ‘Liberation Day’ announcement, which had dragged the index to a low of 7679.48.
Meanwhile, the FTSE 250 experienced a minor decline, closing the day down by 0.06 per cent, indicating a sense of cautious optimism among investors. Beyond the UK, Germany’s Dax and France’s Cac 40 indices also reported gains, rising by 0.34 per cent and 0.56 per cent, respectively. Across the Atlantic, US stock markets surged, recovering from Monday’s losses. The rebound was largely driven by news that US Treasury Secretary Scott Bessent had suggested a potential de-escalation in trade tensions with China. This optimism boosted the S&P 500 and Dow Jones by more than two per cent, while the tech-heavy Nasdaq composite climbed nearly 2.5 per cent. Particularly, shares in Tesla, led by Elon Musk, soared nearly five per cent ahead of the company’s first-quarter results.
Outlook and Investor Sentiment
Despite the positive gains, a full recovery in global markets remains uncertain. The FTSE 100 is still down by 3.5 per cent over the last month. For Wall Street, the path to recovery seems steeper, with the S&P 500 and Dow Jones down over eight per cent, and the Nasdaq dropping more than ten per cent. Investors eagerly await concrete progress on trade deals, with growing impatience over the lack of substantive developments « on paper » rather than just verbal assurances. Matt Britzman, a senior equity analyst at Hargreaves Lansdown, commented on the market’s anticipation, stating: “Markets are now itching for real progress on trade deals. Posts from the President on Truth Social or X just aren’t cutting the mustard anymore. Investors want ink on paper, not just words, as a clear signal that movement is happening – and the clock is ticking.”
The Pound’s Performance
In the currency market, the pound sterling was on the cusp of achieving its 11th straight day of gains, potentially marking its longest streak since January 1971 when the currency underwent decimalisation. By market close, the pound hovered around $1.34 against the US dollar, marking a 0.04 per cent increase from the previous day, and up from $1.25 from the start of the year. This robust performance reflects strengthened investor confidence amidst the ongoing global trade negotiations.
As investors continue keeping a close watch on both policy developments and market signals, the next few weeks are set to be crucial in determining the trajectory of the FTSE and its global counterparts. The underlying sentiment suggests a cautious optimism tempered by pragmatism, as stakeholders await decisive actions that could positively reshape the economic landscape.