FTSE 100 Hits Record High

(Reuters) – London’s blue-chip FTSE 100 reached a record high on Monday for the second consecutive session as investors anticipated Donald Trump’s return to the White House for insights on tariffs and international relations.

The FTSE 100 index of top British firms closed up 0.2% at a new peak, although lower than its intraday high. Trading volumes were light due to a U.S. market holiday.

Trump, who has committed to signing a variety of executive orders related to immigration, energy, and tariffs on his first day in office, is being sworn in as U.S. president.

Traders expressed concern about Trump’s tariff threats on China and other nations, worrying they could escalate inflation and hinder global growth. However, there was relief in global markets on Monday after Trump indicated he would not impose U.S. tariffs immediately during his inauguration.

This week also highlights the annual meeting of government and business leaders in Davos, Switzerland, alongside various earnings reports.

Global stock markets rallied last week after signs of falling inflation in the U.S. and Britain increased traders’ expectations for further rate cuts from the Federal Reserve and the Bank of England.

Currently, traders see an 81% chance of a 25 basis point rate cut from the BoE next month, anticipating 62 basis points of easing overall by late 2025.

In contrast, the FTSE 250 midcap index dropped by 0.5% following a four-session streak of gains.

Regarding individual stocks:
– Reach surged 21%, marking its best day in over four years, after the Daily Mirror publisher projected fiscal 2024 operating profit would exceed market expectations due to strong fourth-quarter performance.
– Sanderson Design Group fell 11% following a profit warning due to declining brand product sales and a weak fiscal year-end in the UK.
– Pod Point Group (WA:PGMP) plummeted around 35% after announcing a difficult year ahead and adjusting its 2024 revenue forecast downward due to weakened EV demand.