The FTSE 100 surged at the open on Thursday, after President Donald Trump backed down on new US tariffs.
London’s leading index jumped more than six per cent – adding nearly 500 points in early trading.
The FTSE 100 soared 6.1 per cent to 8,148 on Thursday, wiping out this week’s earlier losses.
The sharp rebound came after President Trump announced a 90-day pause on his so-called ‘Liberation Day’ tariffs.
Markets welcomed the move, reversing Wednesday’s three per cent drop.
Barclays led the charge, jumping 19 per cent. Melrose Industries followed closely, rising 16.3 per cent in early trading.
JD Sports, Rolls-Royce, Pershing Square, Intermediate Capital, Polar Capital Technology, and Antofagasta all climbed more than 10 per cent in early trade, joining the day’s strong rally.
The FTSE 100 rallied this morning GETTYOnly four companies were in the red: Tesco, Sainsbury’s, M&S, and British Airways owner IAG.
Tesco shares fell four per cent or 12.1p to 323.1p after it said it would sacrifice profits during this year in order to keep firepower for an industry price war.
Germany’s Dax also gained over seven per cent and France’s Cac 40 over eight per cent. Traders will be watching closely as markets react to the latest move from Washington.
Announcing the pause on Truth Social, President Trump said the 90-day reprieve was aimed at "the more than 75 countries" that had not retaliated against his tariffs "in any way."
Global markets plunged on Thursday after President Donald Trump unveiled his tariff onslaughtREUTERSThe announcement triggered a strong market reaction and, alongside a counter-move by China, reignited fears of a global trade war and a potential recession in the United States.
Despite easing pressure on some nations, Trump doubled down on China—raising tariffs on Chinese imports to 125 per cent, effective immediately.
China vowed to "fight to the end" in its trade war against Trump and accused the US of "bullying practices."
Wall Street bounced back sharply on Wednesday after the tariff pause was announced.
The S&P 500 jumped 9.5 per cent, while the Dow Jones climbed 7.9 per cent. The Nasdaq led the charge, soaring more than 12 per cent as big tech stocks rebounded. Apple rose 15 per cent, and Tesla surged 22 per cent.
EU drug companies warn of exodus to US as Trump threatens import tariffs
ReutersMarcus Brookes, chief investment officer at Quilter Investors: “It appears Donald Trump cares about what markets think after all.
“Trump is gaining a reputation now for flip flopping on tariffs and not having a consistent economic policy. Even with this latest announcement, we still have the uncertainty from the fact this is just a 90 day pause.”
Brookes added: “The damage is arguably done for the US. Many consumers and businesses cannot plan with any sort of confidence just now and may see a recession hit regardless.”
