FTSE 100 hits record high as trade war fears ease

FTSE 100 hits record high as trade war fears ease

The FTSE 100 hit a record intraday high today as fears of a trade war between the US and China dissipated and the pound continued its downward trajectory.

London's top flight broke above 7,800 points for the first time as markets were buoyed by news overnight that the global superpowers put a hold on imposing punitive import tariffs on each others' goods.

The index was up 47 points, or 0.6%, at 7,826.34 in morning trade.

Neil Wilson, chief market analyst at markets.com, said: "The FTSE 100 notched up a fresh record high, rising clear of 7,800 for the first time as the feel-good factor from the trade war truce bolstered risk sentiment and a weaker pound delivered the usual shot of adrenaline for the blue chips.

"It looks like progress on talks between China and the US means we are not about to descend into a punitive trade war.

"Whilst there is still a long way to go and nothing is agreed until everything is agreed, there has undoubtedly been solid progress and the sense of relief in equity markets is palpable."

Among the biggest risers were G4S, Astrazeneca, Marks & Spencer and WPP.

The soaring FTSE, however, came at the expense of a fall in the pound, which was trading 0.5% down at 1.34 US dollars.

Against the euro, sterling was flat at 1.14 euros.

"We must note that the FTSE's gains of late are probably more attributable to a weaker pound as the dollar rallies across the board," Mr Wilson added.

BT, British Land and MicroFocus were among the few stocks trading in negative territory.

PA

More on this topic

Trump pledge undermined as US trade deficit widensTrump pledge undermined as US trade deficit widens

US reimposes all Iran sanctions lifted under nuclear dealUS reimposes all Iran sanctions lifted under nuclear deal

Trump says US will pull out of intermediate range nuclear pact with RussiaTrump says US will pull out of intermediate range nuclear pact with Russia

Donald Trump savours trade deal with Canada and MexicoDonald Trump savours trade deal with Canada and Mexico

More in this Section

Scottish Secretary: Northern Irish exports will face checks on way to BritainScottish Secretary: Northern Irish exports will face checks on way to Britain

Topshop chief executive Paul Price to step downTopshop chief executive Paul Price to step down

Goods worth €141bn exported last year; US and UK are strongest trade partnersGoods worth €141bn exported last year; US and UK are strongest trade partners

UK economy suffers worst three months in decade after stagnating in OctoberUK economy suffers worst three months in decade after stagnating in October


Lifestyle

Is it really faster to fly? These environmentally-friendly trips dispel that myth, says Sarah Marshall.5 European journeys which are surprisingly quicker by train

It’s set to be unisex and will hopefully feature more clothes you can wear outside the gym.Everything we want to see from Beyoncé’s upcoming Ivy Park x Adidas collection

The mother-of-three speaks to Liz Connor about the recipe for getting the perfect night’s rest.Christine McGuinness on how to get kids to sleep on Christmas Eve

Carol O’Callaghan gets top expert tips on how to lay and decorate a glorious Christmas dinner table, creating a festive but stylish look to wow your visitors.Your go-to guide to laying the perfect Christmas table

More From The Irish Examiner