UK's FTSE 100 Surges to New High Amid WPP's Rise

The UK's FTSE 100 index has reached a new peak, driven by gains in WPP and other stocks. The index has surpassed its previous high set in February 2020, before the COVID-19 pandemic hit. The rise in the FTSE 100 is a positive sign for the UK economy and reflects the resilience of British businesses.

The FTSE 100 index has reached a new peak, surpassing its previous high set in February 2020, just before the COVID-19 pandemic. The index climbed as much as 93 points, or 1.05%, to an all-time high of 8,960.72 on Thursday, July 2, 2025 [1].

The rally was primarily driven by strong performances in mining stocks, with Rio Tinto (NYSE:RIO), Glencore (OTC:GLNCY), Anglo American (JO:AGLJ), Fresnillo (LON:FRES), and Endeavour among the top performers. These gains were supported by rising prices for iron ore, copper, and gold [1].

The FTSE 100 has risen 9.5% year-to-date, benefiting from a rotation out of U.S. assets amid fears that President Donald Trump’s trade actions could weigh on the American economy. The U.K.'s early trade agreement with the U.S. has also added to London’s appeal [1].

Despite escalating trade tensions sparked by President Trump’s latest round of tariffs, including a 50% levy on U.S. copper imports and new measures targeting Brazil, investors remain unfazed. Chris Beauchamp, chief market analyst at IG, noted that the market is in an “ebullient summer mood” and that such announcements are often viewed as political posturing [1].

In other financial news, Morgan Stanley has lowered its price target on WPP Plc (LON:WPP) to GBP5.75 from GBP6.35 while maintaining an Equalweight rating on the stock. The price target reduction follows WPP’s profit warning for the second quarter and the company’s lowered guidance for 2025 [2].

The advertising giant’s shares currently trade at $29.62, near their 52-week low, with a P/E ratio of 8.68 and a notable dividend yield of 9.14%. Morgan Stanley now forecasts approximately -4.5% organic net revenue growth for WPP in 2025, down from its previous estimate of -2% [2].

Signs of the UK economy picking up after a downbeat spring emerged in new surveys, providing a much-needed boost for Chancellor of the Exchequer Rachel Reeves. A Bank of England survey of chief financial officers showed companies expect to increase employment by 1.1% over the next year, the fastest pace since before the Labour government ramped up employment costs in its first budget in October [3].

A separate purchasing managers poll showed the private sector growing the most in nine months. The figures suggest the economy ended the second quarter on a stronger footing after official data showed gross domestic product contracting in April by the most in 18 months [3].

The FTSE 100’s record high and the positive economic indicators provide a strong indication of the resilience of British businesses and the UK economy.

References:
[1] https://www.investing.com/news/stock-market-news/uks-ftse-100-index-hits-record-high-led-by-strong-miners-performance-4129280
[2] https://za.investing.com/news/analyst-ratings/morgan-stanley-lowers-wpp-stock-price-target-to-gbp575-on-profit-warning-93CH-3783809
[3] https://financialpost.com/pmn/business-pmn/uk-firms-plan-to-boost-hiring-in-sign-of-rebounding-jobs-market