The FTSE 100 started Tuesday’s session on the front foot as geopolitics provided a welcome source of optimism, and a turnaround in US equities overnight following the downgrade of the US credit rating also helped inject some life into European stocks.
Although the S&P 500 only closed 5 points higher yesterday, it had started the session deep in the red and recovered over 1% of losses, helping boost sentiment as the European session got underway.
London’s leading index was 0.5% higher at the time of writing.
The FTSE 100 has gained more than 1,000 points since the post-Trump tariffs lows and is now closing in on all-time record highs at 8,871.
“Renewed hopes for a ceasefire between Ukraine and Russia, combined with another wave of stimulus for China’s economy has provided optimism in early trading,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
“The FTSE 100 and European indices have opened higher as geopolitical tensions look set to ease. Following a call with Putin, President Trump was bullish about negotiations for a ceasefire between Ukraine and Russia starting immediately.”
Diploma was by far the FTSE 100’s best performer as the industrials and life sciences group reported a bumper jump in profits.
“Among the big winners in London was Diploma, the supplier of specialised technical products and services. It announced a big increase in first-half profit, raised its growth forecast for the current financial year, and sounded a bullish tone about the longer term,” explained AJ Bell investment director Russ Mould.
“This provided some reassurance to investors that the company can deliver, even against an uncertain and tricky economic backcloth.”
Diploma shares were 15% higher at the time of writing.
Smiths Group was the second top riser with a 4% gain after a trading update revealed sales accelerated 10% in its fiscal third quarter.
Antofagasta was the top faller as investors banked recent profits in the copper miner.