FTSE 100 Hits Record Close Amid Global Tensions and Trade Developments

London's FTSE 100 achieved its highest close ever, driven largely by energy shares. While geopolitical and trade tensions loom, energy, healthcare, and precious metal sectors made gains. Key global risks include U.S. Middle East military movements and the evolving U.S.-China trade situation. Tesco and Halma showed notable individual stock performance.

London's FTSE 100 secured a historic high close on Thursday, buoyed by robust energy shares and compelling corporate earnings. Despite this milestone, broader gains were tempered by ongoing geopolitical anxieties. The FTSE 100 rose by 0.2% to settle at 8884.92 points, as the midcap index fell slightly by the same percentage.

Energy shares led the rally among primary sectors, escalating by 1.4%, while healthcare stocks increased by 1.2%. Precious metal miners saw a 3.2% rise, linked to escalating gold prices as investors sought refuge in traditional safe haven assets.

Global tension was palpable, influenced by U.S. President Donald Trump's comment on relocating personnel from the Middle East, a response to regional volatility and Iran's nuclear ambitions. Meanwhile, European markets trailed, highlighted by lower closes across Germany, France, Spain, and the STOXX 600.

The trade narrative remained critical as China validated a trade deal announced by Trump, suggesting a temporary calm in the U.S.-China dispute. Within the UK, Tesco's shares rose 1.6% following robust sales growth, and Halma climbed 3.3% due to higher revenue forecasts and exceeded profit expectations. However, Britain's economic growth faced challenges in April from receding tax incentives and external tariffs.

(With inputs from agencies.)