6 days ago
Footsie hits new high on hopes EU will follow Japan in striking a trade deal with the US
London's FTSE 100 hit a new record yesterday as global stock markets rallied on hopes Europe will follow Japan in striking a trade deal with the US.
On another positive day for savers with money in shares through pensions, ISAs and other investments, the index rose 0.4 per cent, or 37.68 points, to 9061.49.
The Nikkei 225 was up 3.5 per cent in Tokyo while the Dax rose 0.8 per cent in Frankfurt and the Cac climbed 1.4 per cent in Paris.
Washington and Tokyo signed a deal for Japan to invest £400billion in the US while its goods will face tariffs of 15 per cent – below the 25 per cent Donald Trump had threatened. The US president called it 'the largest trade deal in history'.
It fuelled hopes that Europe may secure better terms with the US after Trump threatened levies of 30 per cent. Britain's deal means most exports face a tariff of 10 per cent.
'Global markets are in buoyant mood as the US and Japan secured a trade deal,' said Neil Wilson, UK investor strategist at Saxo Bank.
The Footsie has now risen nearly 11 per cent this year.
'News of a trade agreement between the US and Japan is fostering optimism among investors that further deals might be reached before punishing tariffs come into force,' said AJ Bell investment director Russ Mould.
'The news helped drive the FTSE 100 to a new record high and saw gains in other markets across mainland Europe, with focus likely to now turn to the prospects of an agreement being forged between the Trump administration and EU.'
