FTSE 100 Soars Amid Corporate Optimism and Tariff Jitters

The FTSE 100 reached a record high due to positive corporate news and expectations of further monetary easing. Despite new U.S. tariff threats, the positive sentiment continued. Meanwhile, Britain's budget deficit grew, posing challenges for financial strategies. Noteworthy stock movements included Aviva's rise and easyJet's fall.

London's FTSE 100 climbed to a record high on Wednesday, as robust corporate updates and the anticipation of further monetary policy easing took precedence over concerns about U.S. tariffs proposed by President Donald Trump.

The FTSE 100 index experienced a 0.3% increase by 1047 GMT, building momentum for a sixth consecutive session. Similarly, the midcap FTSE 250 index rose by 0.4%, achieving a two-week peak. The European STOXX 600 index also reached a new high, seemingly dismissing Trump's announcement of potential tariffs against the European Union and a 10% punitive duty on Chinese imports.

Domestically, Britain faced a larger-than-expected budget deficit in December, driven by debt interest and a one-time military homes purchase, highlighting the fiscal challenges for finance minister Rachel Reeves. Public borrowing reached 17.8 billion pounds, surpassing economists' 14.1 billion-pound forecast. Investment director Russ Mould remarked on the difficulty of simultaneously managing public finances and economic stimulus. Key stock shifts included easyJet's 2.3% decline due to a tepid revenue forecast, Aviva's 4.1% rise after a J.P. Morgan upgrade, and Hochschild Mining's 13% drop following gold production forecasts.

(With inputs from agencies.)