The FTSE 100 rallied towards record highs on Tuesday as a sense of calm descended over equity markets amid easing geopolitical concerns.
Trade tariffs remain a concern, but there is a sense that we have passed the worst of the uncertainty, and Trump’s meeting with Putin later this week could lay the foundations for future peace in Europe.
London’s flagship index rose 0.3% in early trade after another strong session for US stocks overnight.
“There’s more optimism in the air as a tariff truce between the US and China holds, with hopes the global economy will withstand the trade blow a little better. Oil prices have crept higher in expectation of higher demand for energy around the world,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
UK stocks were also supported by hopes of additional interest rate cuts after another poor assessment of the UK jobs market. The Bank of England has pointed to the labour market as a central driver of their thinking on rates, and the recent rise in job vacancies suggests the voting committee could be forced to cut rates again.
Investors will have one eye on US inflation data due for release later on Tuesday, and any signals of when the Fed will next cut interest rates.
Spirax was the FTSE 100’s top riser as organic revenue and adjusted EBITDA rose amid strength in its Electric Thermal Solutions segment. The group’s shares have suffered over the past 18 months as results underwhelmed and investors will hope the organic growth reported for the half year is a sign of things to come.
Spirax shares were 12% higher at the time of writing.
Housebuilders Persimmon, Barratts and Taylor Wimpey were higher following the release of a trading statement by peer Bellway. Bellway’s completions rose 14% over their full year period, and the group was relatively upbeat about their outlook.
Despite gains on Tuesday, Taylor Wimpey and Barratt Developments were still among the worst-performing FTSE 100 stocks of 2025 so far.