Boom! The FTSE jumps 6pc in tariff-pause rally

Boom! The London stock market is soaring, fueled by relief after Donald Trump scaled back his global trade war yesterday.

The FTSE 100 has surged 6.2%, adding tens of billions of pounds to UK savings and pension funds.

The index has leapt 485 points to reach 8,166—recovering all the ground lost earlier in the week.

Barclays is leading the charge with a 21% gain, followed by engineering firm Melrose, which is up 16%. Mining stocks also rally as optimism grows that a global economic slowdown may be avoided.

European Stocks See Biggest Surge in Five Years

European markets soared as fears of a global trade war eased significantly.

The pan-European Stoxx 600 index—which includes UK-listed firms—surged 7.3%, while France’s CAC 40 climbed 6.4%.

Germany’s DAX led the gains with a 7.8% jump, putting European equities on track to recover roughly half of the losses sustained since mid-March, assuming the rally holds through the market close.

Matthew Ryan, head of market strategy at global financial services firm Ebury, commented:

“Just over 48 hours after the White House firmly dismissed any suggestion of delaying the tariffs, President Trump reversed course, announcing a 90-day postponement for U.S. tariffs above 10% on most countries—China being the major exception. For China, total additional tariffs were raised from 104% to a staggering 125%.

“Markets welcomed the move, hopeful that the delay opens the door for negotiation, compromise, and potentially a broader softening of the tariff measures to mitigate the global economic impact. While nothing is ever certain with Trump, market sentiment clearly suggests growing optimism that a more moderate outcome is on the horizon.

“It seems almost unthinkable that tariffs of such extreme magnitude would be sustained, given their likely severe consequences for the U.S. economy—an economy that would be teetering on the edge of recession. That’s not the kind of legacy the 47th President would want to leave behind.”