Record market high as trade war fears recede

Blue-chip stocks hit a record high yesterday as fears of a trade war between the US and China receded and sterling continued to fall – good news for UK exporters – on currency markets.

Theftse100indexbreached the 7,800 milestone for the first time as markets were buoyed by news overnight that the economic superpowers had put on hold threats to impose punitive mutual import tariffs.

The Footsie 100 closed up 80.38 points, or just over 1 per cent, at 7,859.17, adding almost £21 billion to the value of leading shares.

Jasper Lawler, head of research at London Capital Group, said: “It was the weakness in the British pound on top of general optimism about the receding prospect of a Ustrade war that helped.

“Thegainswerebroad-based with shares of 3i leading the charge while gold-miners were among only a handful of shares that lost value as the price of gold dropped.”