West Midlands stocks join record climb
The FTSE 100 surged past 9,000 points for the first time this week, marking a historic milestone for UK markets and offering good news for several West Midlands-linked companies that have helped drive the index’s 10.3% rise this year.
According to analysts, global investors are increasingly shifting funds from the US to the UK, viewing British stocks as a ‘safe haven’ amid global trade tensions and economic uncertainty.
The FTSE’s performance has now outpaced both the S&P 500 and the Stoxx Europe 600 so far in 2025.
Regional players performing
Among the standout performers are Rolls-Royce, which has strong engineering ties to the Midlands, up 75% year-to-date, and BAE Systems, which has multiple operations in the region, up 65%.
The defence sector has been a key driver of FTSE strength, boosted by continued global instability and government contracts.
The financial sector also played a central role in the rally, with Lloyds Banking Group, a major employer in Birmingham, seeing its share price rise 41%. Insurance giant Prudential climbed 47%.
‘Safe haven’ appeal
Experts point to the UK’s relatively low stock valuations, with the FTSE trading at 17 times earnings compared to the S&P 500’s 27.3, as a major attraction for global investors.
A partial trade agreement between the UK and US in May has also given London an edge over continental markets still grappling with tariff concerns.
Despite this progress, caution remains over the UK’s tight fiscal position. Analysts warn future gains could be jeopardised if market confidence in government spending falters.
Still, the FTSE 100’s latest record underscores growing momentum in British business, with key West Midlands industries playing their part.
DISCLAIMER: This piece is the view of this columnist and should in no way be seen as investment advice.
