Shares in FTSE 100 heavyweight Barclays soared in early trading following Trump's rollback of his 'Liberation Day' tariffs. The bank's stock surged over 20 per cent as markets opened, before settling to a 15 per cent gain, topping the blue-chip index's risers.
This surge helped offset the lender's losses following Trump's tariff onslaught, reducing its one-month loss to three per cent. Barclays shares had taken a hit as geopolitical tensions escalated over the past week, with shares in the lender dropping nearly ten per cent after China launched its first round of retaliatory tariffs against the US on Tuesday, as reported by .
Russ Mould, investment director at AJ Bell, commented: "In Barclays' case, its investment bank is heavily geared into how the financial markets performed."
He added that "Tumbling, or volatile, markets are likely to deter merger and acquisition activity and also new market floats, both areas where there are fat fees to be made."
The firm's investment bank has become a crucial part of business operations and has been a significant driver of profits. It exceeded £11.85bn in total income for 2024, surpassing analyst estimates of £11.7bn.
Barclays' recovery coincided with the FTSE 100 surging over five per cent. Lenders have borne some of the most substantial losses amidst the escalating global trade war.
Last week, the FTSE 100's 'Big Five' led the decline in the index. Both HSBC and Standard Chartered have experienced setbacks due to their Asian operations, which were hit hard by the heavy tariffs imposed by Trump.
Before the opening of US markets on Tuesday, Bloomberg's estimates highlighted that major bank stocks had shed more than $700bn (£544bn) in market value within a single week.
Adding to the commentary, Mould remarked that while Barclays and its counterparts are seen as "geared plays on economies and financial markets on the way down, they are likely to be seen as geared plays on them if they recover."
