While trade war concerns weigh on markets across the Asia-Pacific region and continental Europe, the FTSE 100 defied the downturn, closing 53.5 points higher in London.
The FTSE 100 climbed 0.6% today, closing at 8,809.74, just 11 points shy of its all-time high set earlier this month.
Following a week of high-level negotiations in Washington, optimism grew over a potential trade agreement between the UK and the US.
London’s internationally focused stock index also benefited from a positive start to trading in New York.
Sir Keir Starmer returned to the UK after meeting with Donald Trump at the White House, where the US president hinted that a trade deal could shield British exports from upcoming US tariffs. Trump has confirmed plans to impose tariffs on Canada and Mexico starting next Tuesday and to double the existing 10% universal tariff on Chinese imports.
Investors are also weighing the implications of increased European defense spending as leaders continue discussions on Russia’s war in Ukraine.
Kathleen Brooks, research director at XTB, noted that Trump’s “fondness for the UK, and another invitation for a state visit to Buckingham Palace, means the UK is now the golden child of Europe.”
“This is reflected in the UK’s asset prices, with the FTSE 100 gaining on Friday as hopes of a swift trade deal with the US rise,” she added.
Meanwhile, European markets staged a late-afternoon rebound after spending much of the day in decline. In Paris, the CAC 40 edged up 0.1%, while Germany’s DAX finished the session flat.
