The FTSE 100 US-China Trade Truce boost was evident on Tuesday as Britain’s blue-chip index gained momentum following a 90-day extension of tariff peace between the two largest economies. The move lifted global investor confidence while markets turned their attention to crucial economic data releases.
As of 09:47 GMT, the FTSE 100 advanced 0.3%, while the midcap FTSE 250 was largely unchanged. The truce delay eased fears of steep new duties on Chinese goods entering the U.S., providing much-needed short-term relief to trade-dependent sectors.
Strong Stock Performances
Engineering group Spirax led gains with a 13% surge after forecasting faster second-half organic sales growth, supported by a solid order book. Homebuilder Bellway climbed 1.4% as it projected increased homebuilding in the 2026 financial year. This optimism helped push the broader UK housing sector index 0.7% higher.
Mining stocks also benefited from positive updates. Atalaya Mining rose 7.1% after raising its 2025 copper production outlook, lifting the industrial metals index by 0.5%.
UK Jobs Data and Bank of England Outlook
Fresh UK labour market figures showed payrolls declining for the sixth straight month and job vacancies falling further. However, strong wage growth persisted, suggesting the Bank of England may remain cautious about cutting interest rates. Policymakers are currently split over balancing the risks of a hiring slowdown with potential inflationary pressures.
The data indicated a gradual cooling of the labour market rather than a sharp downturn, keeping the economic outlook uncertain.
Global Market Focus Shifts to US Inflation
Investor attention now turns to upcoming U.S. inflation figures, expected to reflect early signs of tariff-driven cost increases. Analysts anticipate these pressures could be passed on to consumers, influencing future monetary policy in the world’s largest economy.
Meanwhile, the UK technology sector led the day’s losses, slipping 0.7%. Gambling firm Entain fell 3.6% despite forecasting an annual core profit above market expectations.
The FTSE 100 US-China Trade Truce development signals temporary stability, but market volatility may return as the 90-day deadline approaches and inflation data shapes global rate decisions.
