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A member of workforce subsequent to a buying and selling board on the London Stock Exchange on April 25, 2025.
Carl Court | Getty Images
While international markets had been gripped by means of turbulence within the wake of U.S. President Donald Trump’s seesawing price lists insurance policies, British shares have loved a bumper rally.
London’s FTSE 100 index, which has won 4.8% for the reason that starting of the 12 months, used to be 0.8% upper at 1:00 p.m. within the U.Ok. on Friday — hanging it on target for its longest ever run of day by day good points. Later within the afternoon, the index rose above 8,600 issues, convalescing its losses for the reason that day the overall record record of Trump’s reciprocal price lists used to be unveiled.
On Thursday, the index closed marginally upper, marking its fourteenth consecutive consultation of good points. This has came about most effective as soon as prior to, in 2017, when the FTSE 100 noticed fourteen back-to-back day by day rises.
London’s extra regionally targeted FTSE 250 has additionally been on a profitable streak of past due, having notched seven consecutive days of good points by means of Thursday’s ultimate bell. On Friday, the index used to be buying and selling flat, paring previous good points. If the index ends Friday’s consultation in certain territory, it could mark the FTSE 250’s longest run of good points since past due 2020.
London-listed equities that noticed the largest good points on Friday incorporated British meals outlet operator SSP Group, up 4%, English healthcare company Haleon, up 3.8%, and U.Ok.-based aerospace company Melrose Industries, which rose by means of 3.6%.
Safe haven for price lists?
When it comes to what is fueling the upward push of British inventory markets, the U.Ok.’s distinctive place clear of the firing line of latest U.S. price lists is a part of the image, in keeping with Naeem Aslam, leader funding officer at London’s Zaye Capital Markets.
“The easing of U.S.-China trade tensions and the removal of tariff threats have boosted confidence, while the United Kingdom’s neutral trade status has shielded it from the more punitive levies faced by the European Union or China,” he mentioned in an e-mail.
The U.Ok. has been spared from the brunt of the Trump management’s so-called reciprocal price lists, and closing month Vice President JD Vance mentioned he noticed a “good chance” of Britain forging a business maintain the United States that might give the U.Ok. additional reprieve from the tasks.
“The index’s defensive giants — healthcare (e.g., AstraZeneca), power (e.g., Shell), and consumer staples — have drawn investors seeking refuge from volatility, supported by a high dividend yield of between 3.5% and 4%,” Aslam advised CNBC on Friday.
“Furthermore, powerful company effects from the likes of Whitbread (+3.4%) and Entain (+6.8%), combined with a resilient UK economy growing at an annualized rate of 1.5%, also add fuel to the rally, making the FTSE 100 a relative safe haven.”
Aslam mentioned the FTSE 100’s upward momentum may just proceed if defensive shares stay in want — then again, he famous that there have been “risks abound.”
“Technical point to the index, being overbought … suggesting a pullback,” he mentioned. “Geopolitical hotspots or revived tariff tensions may upset momentum, while a firmer pound (around $1.30) could put pressure on export-heavy members.”
However, he famous that undervaluation relative to the FTSE 100’s international friends mixed with expectations of more than one rate of interest cuts from the Bank of England this 12 months, may just push the index as top as 8,900 issues by means of the top of subsequent month — a go back of round 4% from present ranges.
Susannah Streeter, head of cash and markets at Hargreaves Lansdown, agreed that the blue-chip index has the prospective to increase its checklist run.
“The FTSE 100 has significantly more power in reserve and could have further to run, given that the index is not yet regained the record levels reached in March,” she advised CNBC by way of e-mail on Friday.
However, she famous that uncertainty over U.S. business coverage and the level of the impact at the international economic system, had the prospective to position a lid on additional good points.
In a observe to shoppers on Thursday, Bank of America strategists ranked the United Kingdom as its 10th easiest appearing fairness marketplace with returns of 12.6% from the start of the 12 months to the top of April. The most sensible of the record used to be ruled by means of European markets together with Spain, Greece and Germany, whilst U.S. shares — down by means of round 5% on a year-to-date foundation — had been ranked in 20th position.
Bob Huxford, head of the general public firms department at London-based communications company SEC Newgate, advised CNBC on Friday that volatility in U.S. fairness markets introduced British capital markets with a chance to regain one of the floor misplaced to the U.S. in recent times.
“The London market has undergone nine successive years of outflows, with 2024 the worst year on record when £9.6 billion left our shores, mostly headed for America,” he mentioned. “Current uncertainty in the US stock market offers a chance for the UK to reverse this trend. Money is already flowing from the US, and there are a host of reasons why the UK represents a port in a storm amid the market turmoil.”
— CNBC’s Ganesh Rao contributed to this record.
