The FTSE 100 closed at a new record high after a session shaped by renewed risk appetite, despite continued pressure in commodities. A shift in sector leadership saw investors rotate away from resource-linked shares and into defensive and financial names, helping the UK’s blue-chip index extend its multi-month momentum.
The broader backdrop of commodity weakness initially cast a shadow over early trade, with metals markets enduring sustained losses. Gold and silver prices dipped further following a sharp decline late last week, triggering cautious positioning across mining stocks. Despite this, the FTSE 100 gradually gained ground throughout the day as investors sought stability in sectors less exposed to cyclical volatility. Pharmaceutical companies, consumer staples and large banks offered a measure of insulation, drawing steady inflows and mitigating weakness among major miners.
A modest rise in house prices, combined with improving manufacturing output and firming business confidence, painted a picture of underlying domestic resilience. These data points offered reassurance at a time when market participants remain watchful of policy developments, particularly the Bank of England’s upcoming interest rate stance.
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