Markets are rallying across Europe, and London’s FTSE 100 has joined the surge with a record close of 8,975 points. Despite escalating rhetoric from Donald Trump, investors are betting that most of his trade threats won’t materialize.
Mining stocks led the way, buoyed by rising metal prices and expectations of stable global demand. Fresnillo, in particular, has seen a 140% rise in share price this year thanks to gold and silver price hikes.
The rally extends to defense companies like BAE Systems and Babcock, reflecting investor belief in rising global military budgets amid ongoing conflicts. Overall, the FTSE has gained over 9% in 2025 alone.
Traders are embracing what some call the Taco trade—a belief that Trump’s bold declarations are more about political drama than policy follow-through. This view is helping sustain bullish sentiment in global markets.
