(Reuters) -London's blue-chip FTSE 100 hit a record high on Monday for the second session in a row as investors awaited Donald Trump's return to the White House for fresh insights on his stance on tariffs and international relations.

The FTSE 100 index of top British firms ended up 0.2% at a fresh closing peak, though off its intraday high. Trading volumes were thin due to a U.S. market holiday.

Trump, who has pledged to sign a flurry of executive orders concerning immigration, energy and tariffs on his first day in office, is being sworn in as U.S. president.

Traders have been concerned that his threats of tariffs on China and other countries would stoke inflation and weigh on global growth. There was a sense of relief in global markets on Monday after Trump was quoted as saying he would not impose U.S. tariffs yet at his inauguration.

Also in focus this week is the annual gathering of government and business leaders in Davos, Switzerland, as well as earnings reports.

Stock markets across the globe surged last week after signs of slowing inflation in the U.S. and Britain prompted traders to increase their bets of further rate cuts from the Federal Reserve and the Bank of England.

Traders are currently pricing in an 81% chance of a 25 basis point rate cut from the BoE early next month, and see 62 bps of easing overall by the end of 2025.

The FTSE 250 midcap index dipped 0.5% after a four-session run of gains.

Among individual stocks, Reach soared 21% for its best day in more than four years, after the publisher of the Daily Mirror estimated its fiscal 2024 operating profit would beat market expectations, helped by a strong fourth quarter.

Sanderson Design Group slumped 11% after the luxury interior design and furnishings group issued a profit warning, hurt by lower brand products sales and a weak finish to the fiscal year in the UK.

Electric vehicle charging point provider Pod Point Group plunged about 35% after it warned of a challenging year and cut its 2024 revenue forecast due to weaker EV demand.

(Reporting by Sruthi Shankar in Bengaluru. Editing by Eileen Soreng and Mark Potter)