The FTSE 100 just wrapped its strongest quarter in nearly three years, climbing 6.7% despite geopolitical drama and Trump’s tariff chaos. London’s blue-chip index proved it can handle whatever the market throws at it, bouncing back from early-year lows to hit record highs.
So what’s driving this comeback? Let’s break down the quarterly performance, the key movers, and what it all means for investors heading into the next quarter.
Daily Performance: FTSE 100 Closes Higher Despite Morning Losses
London’s flagship index clawed back early losses to finish Tuesday up 0.54% at 9,350.43. It wasn’t a smooth ride – but when is it ever?
Pest control firm Reckitt and pharma heavyweight GSK led the charge, both closing up over 3%. Retailer JD Sports chipped in with a 2% gain, helping offset some heavyweight losses.
On the flip side? Tech giant BT dropped 2%, while oil majors Shell and BP both slid over 1.8% after OPEC+ announced plans to ramp up oil output. Crude prices nosedived 3% on the news, dragging energy stocks down with them.
Strong Quarterly Gains Despite Economic Headwinds
The FTSE 100’s 6.7% quarterly rise is its best since Q4 2022, when it posted an 8.1% gain. Not too shabby considering the UK economy hit the brakes in Q2, according to grim GDP data from the Office for National Statistics.
But here’s the thing: the market didn’t blink. Investors are clearly looking past short-term economic sluggishness and betting on bigger picture momentum.
Year-to-date, the FTSE 100 is up over 13% – an impressive recovery considering where we started.
Trump’s Tariff Chaos Couldn’t Keep the Index Down
Remember when Trump’s tariff offensive sent the FTSE 100 tumbling to 7,679.48 earlier this year? Yeah, those were dark days.
But as Trump walked back his trade war rhetoric, the index went on an absolute tear – notching a record 16 consecutive days of gains. That’s the kind of winning streak that makes traders giddy.
Of course, the White House had to remind everyone who’s boss. Trump’s appointment of a vaccine skeptic to lead the FDA’s Center for Biologics and Research sent pharma stocks into a tailspin, snapping the streak and pulling the index back into the red.
Classic Trump move: gives with one hand, takes away with the other.
Key Takeaways: What the FTSE 100’s Quarterly Rise Means
The FTSE 100 has proven resilient in the face of political chaos and economic uncertainty. With over 13% gains year-to-date and solid quarterly momentum, the index is showing strength. But stay alert – between unpredictable White House decisions and ongoing geopolitical tensions, volatility remains a constant companion.
Track the latest FTSE 100 movements and market analysis to stay ahead of the curve.
FAQ
Q1: What was the FTSE 100’s quarterly performance?
A: The FTSE 100 rose 6.7% this quarter, marking its strongest quarterly gain since Q4 2022. This performance helped push the index to record highs despite significant volatility throughout the period.
Q2: Why did oil stocks like Shell and BP fall?
A: Shell and BP dropped over 1.8% after OPEC+ announced plans to increase oil production. The news sent crude oil prices down 3%, putting pressure on energy sector stocks across the board.
Q3: How did Trump’s tariff policies affect the FTSE 100?
A: Trump’s tariff offensive initially sent the index down to 7,679.48. However, when he scaled back his trade war rhetoric, the FTSE 100 rebounded with a record 16-day winning streak before political uncertainty returned.
Q4: What caused the recent pharma stock selloff?
A: Trump appointed a vaccine sceptic to lead the FDA’s Center for Biologics and Research. The move spooked investors and sent pharma stocks like GSK tumbling, dragging the broader index into negative territory.
Q5: Is the FTSE 100 a good investment right now?
A: The index is up over 13% year-to-date with strong quarterly momentum. However, political volatility and economic uncertainty remain key risks. Investors should consider their risk tolerance and diversification strategy before making moves.
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Effective Date: 15th July 2025
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