The FTSE 100 took Donald Trump’s latest wave of tariff threats in its stride on Wednesday and carved out reasonable gains in line with a European rally.
London’s flagship FTSE 100 index was trading at 8,883 at the time of writing and was on track to close at a record high.
The strength of the TACO trade was on show on Wednesday as traders shrugged off the US President’s threats of tariffs on copper and pharmaceuticals.
Although the sectors that would be directly impacted by a 50% tariff on copper and a 200% tariff on pharmaceuticals were trading negatively on Wednesday, there was ample strength elsewhere to take the market higher.
“There was a solid showing across European equity markets despite Trump’s tariff onslaught ramping up a gear,” said Dan Coatsworth, investment analyst at AJ Bell.
“Copper prices soared on the prospect of 50% tariffs on copper imports into the US. The metal price had already been moving higher as buyers second-guessed tariff threats and stockpiled copper.
“Shares in metal producers Antofagasta, Glencore and Anglo American edged back on the news as investors worried about uneven flows in commodity supply chains.”
AstraZeneca and GSK started the session deep in the red on fears of 200% tariffs but rallied as the session progressed. GSK turned positive and was trading 0.3% higher at the time of writing.
“It’s been no secret to drug developers that their exemption has been under threat and the industry has already had some time to prepare mitigation plans,” said Derren Nathan, head of equity research, Hargreaves Lansdown.
“For now, that exemption remains in place and it could be another year before any taxes come into effect. Washington needs to tread a fine line between acting tough on trade and maintaining the electorates access to vital medicines.
“For many treatments there just aren’t any alternatives. That said, European pharmaceutical companies already have a strong manufacturing footprint in the US, and the likes of AstraZeneca, Novartis and Roche have already announced multi-billion-dollar expansion plans in-country.”
WPP
WPP was the FTSE 100’s top faller after downgrading its profit outlook due to clients holding back on spending. The company slashed its profit estimates for the first half of 2025 and shares sank over 17%.
“WPP’s start to the year was poor, and its first-half performance fell short of its original underwhelming guidance,” explained Aarin Chiekrie, equity analyst, Hargreaves Lansdown.
“Net revenue is now set to fall by between 3% and 5% over the full year due to client losses and a tough macro environment, which has caused continuing clients to spend less. To make matters worse, the new business pipeline is drying up, with performance in June being worse than WPP expected. There’s not likely to be much let-up over the second half either, so the group’s going to need new ways to engage clients and protect margins.”
WPP shares have halved in 2025 year to date.