The UK’s FTSE 100 index surged past the 9,000-point milestone for the first time on Tuesday, helped by global investors moving away from the US amid President Trump’s trade war uncertainty. The UK markets have benefited from the government reaching a partial trade agreement, with some seeing this as giving the UK an advantage over Europe. The FTSE 100 also benefited from its heavy weighting to mining, telecoms, financials, and utilities. However, the UK government’s fiscal position is still a potential barrier for growth.
The UK’s FTSE 100 index surged past the 9,000-point milestone for the first time on Tuesday, helped by global investors moving away from the US amid President Trump’s trade war uncertainty.
Bitcoin also reached a new all-time high on Tuesday, almost reaching $123,000, as the Trump administration launched “crypto week” to promote digital assets as a core part of the US financial system. The proposed Genius Act, which would allow traditional banks to issue stablecoins, has sparked record inflows into crypto investment vehicles. While central banks remain cautious, institutional interest is accelerating, with JP Morgan announcing its own stablecoin plans.
Bitcoin also reached a new all-time high on Tuesday, almost reaching $123,000, as the Trump administration launched “crypto week” to promote digital assets as a core part of the US financial system.
The UK’s Consumer Prices Index (CPI) rose to 3.6% in June, up from 3.4% in May, marking the highest level since January 2024. The increase was driven primarily by petrol prices, which didn’t fall as sharply as they did a year ago, and continued pressure from food and clothing costs. This uptick complicates the Bank of England’s path toward interest rate cuts, with markets now less certain about a reduction at the August meeting. While core inflation also edged up to 3.7%, services inflation held steady at 4.7%, suggesting persistent domestic price pressures. Investors and households alike are watching closely, as higher inflation could mean prolonged strain on borrowing costs and real incomes.
Our specialist's final thought
"While core inflation also edged up to 3.7%, services inflation held steady at 4.7%, suggesting persistent domestic price pressures. Investors and households alike are watching closely, as higher inflation could mean prolonged strain on borrowing costs and real incomes."
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