The FTSE 100 was largely flat in early trade on Tuesday after US stocks stormed higher overnight amid rising optimism around global trade.
London’s leading index was up 0.1% at the time of writing, following a 3.2% rally in the S&P 500 yesterday driven by tech shares.
The S&P 500 is now higher than it was just before Trump announced his tariffs, and the NASDAQ has officially entered a bull market.
“The FTSE 100 hasn’t quite echoed the enthusiasm seen in US and Asian markets for the partial roll-back of tariffs between trading giants the US and China,” explained Derren Nathan, head of equity research, Hargreaves Lansdown.
“Asian markets continued to bask in the glow of a less onerous outlook for international trade, following strong gains on Wall Street, where stocks have now all but eradicated losses seen so far this year. The tech bulls were out in force, sending the Nasdaq composite up 4.3% as companies with Chinese exposure such as Apple, Amazon and Tesla rallied strongly.”
The FTSE 100’s benign performance so far this week reflects the defensive nature of the index, which is heavily focused towards ‘safer’ sectors such as utilities, precious metals miners and pharma stocks that perform better during times of volatility.
While this meant London’s leading index held up amid the heights of trade uncertainty, it also meant it would lag the peer group during the recovery.
The FTSE 100’s miners were the main contributors to the index in terms of the number of points on Tuesday, with Glencore, Rio Tinto and Antofagasta adding to strong gains yesterday on optimism around the US/China trade deal.
Kingfisher shares rose after peer Wickes reported surging revenue in the early weeks of 2025, driven by higher volumes and flat cost inflation.
Entain was the top riser after UBS upgraded their rating to ‘buy’.
There was weakness in UK-focused banks following news of a slowing UK jobs market. Lloyds, NatWest, and Barclays were all down around 1% at the time of writing.
DCC was the FTSE 100’s top faller after the group reported falling sales in 2025.