Shares rise as traders try to interpret Trump policies
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The FTSE 100 rose again on Tuesday while US stocks surged, following the inauguration of Donald Trump as president. London’s blue-chip index gained 27.75 points to finish the day at 8,548.29, up 0.3% on the day before. UK stocks continued to perform well despite uncertainty over what the new president’s policy on trade tariffs would be.
Mr Trump stopped short of imposing widespread tariffs on the US’s trading partners, instead suggesting only that there would be 25% tariffs on imports from Mexico and Canada. For someone who has talked repeatedly about wanting American companies to buy American goods and to deter foreign countries from profiting from the US, it was a surprise to see tariffs take a back seat as Trump put his new powers to use.
Russ Mould, investment director at AJ Bell, said investors were trying to get a grip on what the new Trump administration would put in place, separating the fact from the speculation. “The big surprise was a lack of immediate action on trade tariffs as part of Trump’s initial list of executive orders,” Mr Mould said.
“For someone who has talked repeatedly about wanting American companies to buy American goods and to deter foreign countries from profiting from the US, it was a surprise to see tariffs take a back seat as Trump put his new powers to use. “However, Trump did manage to comment on tariffs before inauguration day was over. He implied 25% tariffs on imports from Mexico and Canada could happen as soon as February 1.
