FTSE 100 hits new high on tariff cues

Markets react to tariff talk and mixed data as major indices move on policy signals.

FTSE 100 hits new high as tariff signals ripple through markets

US tariff plans on semiconductors and steel are expected in coming weeks, a move that could reshape supply chains and weigh on investment. President Donald Trump signaled a two-step approach with a lower initial rate followed by a higher later, while stocks like Intel reacted to the potential stake discussions in Washington. The Dow briefly rose on strong individual stock moves, underscoring how policy chatter can drive big swings in sentiment.

In Europe, the FTSE 100 traded near intraday highs as miners and energy shares helped lift appetite for risk, even as global growth concerns persisted. Swiss data pointed to slower growth in the second quarter amid an environment of tariff uncertainty. Corporate activity kept the mood steady with ABF agreeing to buy Hovis and Shein reporting UK sales above £2 billion, signaling resilience among large consumer platforms. Oil prices edged lower ahead of a high-profile summit between Trump and Putin, illustrating how geopolitical risk travels across markets.

Tariff talk remains a powerful driver of market behavior, often ahead of actual policy moves. The mix of policy risk, earnings beats, and commodity-led upside creates a mood of cautious optimism rather than clear direction. The FTSE 100’s strength shows how global risk appetite can lift markets even when domestic data loom uncertain. The bigger question is whether protectionist moves will widen or ease, and how central banks will balance rate expectations with slowing growth. Investors should watch policy signals as closely as quarterly results, because the next move could come from diplomacy as much as economics.

Highlights

Policy choices in the coming weeks will shape the next phase of market moves.