The FTSE 100 gained on Tuesday as banks helped lift the index ahead of the Federal Reserve’s interest rate decision tomorrow.
London’s flagship index shook off the latest threats of tariffs to briefly rise above 10,200 before easing back to trade 0.4% higher at 10,189 at the time of writing.
“The FTSE 100 moved higher after gains in the US last night and across much of Asia,” said Dan Coatsworth, head of markets at AJ Bell.
“The exception to the positivity in Asian markets was South Korea after the Trump administration announced it was raising tariffs on imports from the country to 25% after accusing Seoul of not living up to a deal agreed last year.
“The potential threat of 100% tariffs on Canada if it strikes a trade deal with China also lingers in the air, after the possibility of import taxes on European goods was floated in the spat over Greenland.”
The impact of tariff threats on markets is diminishing, and the latest outburst by Donald Trump was largely ignored by equity investors, who were happy to take the S&P 500 0.5% higher overnight.
UK markets also took the risk of another US government shutdown in their stride, preferring to focus on the Fed’s decision and a raft of US tech earnings later this week.
Sage shareholders will be disappointed to see the group’s lacklustre reaction to its trading statement for the three months ended 31 December 2025. Sage’s total revenue rose 10% during the period, while its cloud business revenue increased 15%. Investors may have liked to see an upgrade to guidance, but they’re certainly heading in the right direction.
“Tech isn’t a huge feature of the London markets but the FTSE’s only software pureplay Sage has put its best foot forward today, with a strong first quarter trading update,” explained Derren Nathan, head of equity research, Hargreaves Lansdown.
“The provider of accounting and business applications grew revenue by 10% with cloud revenues leading the way, up 15%, and positive growth seen in all regions. Its next-generation solution, Sage Intacct, which offers increased levels of automation for financial reporting is building scale.”
Sage shares were flat at the time of writing.
Banks HSBC, NatWest, and Barclays were among the top risers as investors looked to tomorrow’s Fed interest rate decision and the likelihood of rates remaining on hold. Banks enjoy higher interest rates, and hints that rates could stay where they are will be taken as a win for FTSE 100 bank investors.
Profit takers sent Fresnillo 3% lower and to the bottom of the leaderboard as precious metals’ rip-roaring rally paused for breath.