Improved economic outcome+tariff concerns ease The UK FTSE 100 Index is expected to close at a record high

The Zhitong Finance App learned that due to improved economic prospects and easing trade tensions, the British FTSE 100 Index is expected to close at a record high for the first time since March, recovering from the sharp decline caused by tariffs. On Tuesday, the export-oriented index rose 0.4% to 8871.41 points, surpassing the peak of 8871.31 points in March.

The UK benchmark stock index is catching up with the global stock market benchmark index and the German DAX index. The latter two indices both hit new record highs after a sharp decline in April.

The UK FTSE 100 index is still 0.4% below the intraday high of 8908.82 points, and market sentiment is still weak, as the UK faces a situation where a large number of companies move to the US to go public and put their initial public offerings (IPOs) on hold. Defense contractors Babcock International Group and BAE Systems and precious metals mining company Fresnillo Plc are the components that have increased the most in the index this year.

The UK FTSE 100 Index is expected to close at a record high

In April of this year, US President Donald Trump suspended some tariffs and the UK and the US reached a trade framework agreement. Since then, the FTSE 100 index has rebounded strongly. Economic data also improved, and the UK business confidence index soared to a 9-month high in May.

“British stocks are among the cheapest stocks in Europe,” said Georges Debbas, head of European equity derivatives strategy at BNP Paribas Markets 360. “This country is also the friendliest country to the US because it is the only country that has a fixed trade agreement with the US. This allows investors to form a more constructive view of the UK market.”

Despite this, the index still lags behind other European benchmarks, which benefited from lower interest rates and massive fiscal stimulus programs led by Germany. The FTSE 100 index rose by 8.5% in 2025, far behind the 21% increase in the German benchmark index. Meanwhile, Spain's IBEX 35 index rose 23%, and Italy's FTSE MIB index rose 18%.

In recent years, the UK stock market has shrunk due to the delisting of companies, a decrease in the number of IPOs, and some companies moving their main listing locations to the US to seek more trading liquidity.