U.S. President Donald Trump struck a trade deal with Japan, lowering tariffs on auto imports and sparing Tokyo from punishing new levies on other goods
International News via Reuters:
London’s main stock indexes hit a fresh record high on Wednesday, helped by positive corporate updates, while a U.S.-Japan trade deal also boosted global sentiment.
The benchmark FTSE 100 was last up 0.5% by 0936 GMT. The domestically oriented midcap FTSE 250 gained 0.3%.
U.S. President Donald Trump struck a trade deal with Japan, lowering tariffs on auto imports and sparing Tokyo from punishing new levies on other goods in exchange for a $550 billion package of U.S.-bound investment and loans.
The UK’s automobiles and parts index rose 1.7%, tracking strength in Asian rivals. Aston Martin rose 7.1%.
Media stocks led sectoral gains, up 2.4%, boosted by Informa’s 5.4% rise after the events and academic publishing group raised its annual underlying revenue growth forecast.
Healthcare stocks rose 2.2%, with AstraZeneca extending its yesterday’s gain, up 2.7%, following the announcement of a $50 billion investment to expand U.S. manufacturing.
Conversely, construction and materials stocks lost 0.9%, with Breedon Group down 10.8%, after the company forecast annual results at the low end of market expectations.
In company news, J D Wetherspoon gained 3% after the pub group reported a rise in sales in recent weeks since May.
Shares of precious metals company Hochschild Mining rose 7.1% on stronger-than-expected quarterly silver output.
British stocks have rallied this year, pushing the FTSE 100 to all-time highs in recent weeks, as hopes of interest rate cuts, optimism over the UK-US trade deal and a surge in commodity prices lifted sentiment.
Traders are currently pricing an 87.9% chance of a 25-basis-point BoE cut next month, as per data compiled by LSEG.
This week, attention is on the UK flash Purchasing Managers’ Index for July and retail sales data for June.
Meanwhile, India and Britain will sign a free trade agreement on Thursday during Indian Prime Minister Narendra Modi’s UK visit, officials said.
Reporting by Sukriti Gupta; Editing by Vijay Kishore
