Britain’s FTSE 100 share index has reached a new record high as trading commenced, reflecting a broader risk-on sentiment in global markets. The index, often referred to as the Footsie, increased by 21 points or 0.2%, reaching an intraday peak of 10,362 points. This marks a 4.3% rise in the index since the start of the year.
Mining stocks are enjoying a robust recovery, leading the charge in the index’s uplift. Endeavour, a notable gold and metal producer, experienced a 5% surge, closely followed by Fresnillo, which rose by 4%. Other significant contributors include copper producer Antofagasta, up 2.5%, and Anglo American, which gained 2.3%, all benefiting from a resurgence in commodity prices.
Analysts have pointed out that gold is currently 12% above its recent lows, while silver has jumped by 22%. Neil Wilson, a strategist at Saxo UK, commented on the somewhat erratic nature of the market, stating it remains “prone to wild swings in price.” He suggested that traders are cautiously re-entering the market, encouraged by the recent clearance of speculative positions that had dominated trading activity.
Market optimism has been further fueled by a significant policy shift from former President Trump regarding tariffs, which is expected to provide trade tailwinds. Susannah Streeter, Chief Investment Strategist at Wealth Club, noted that the Footsie benefits from the rally in metals, with renewed interest reflecting its defensive nature in volatile times. Bargain hunters have seized the opportunity to invest in precious metals, particularly in light of their previous price declines. While gold and silver remain lower than their peaks from the previous week, the current prices represent a substantial increase compared to the same time last year.
In a notable development, gold is poised for its largest single-day gain since November 2008, with spot gold prices rising by 5.8% to approximately $4,939 an ounce. This rise comes after a significant dip over the prior trading sessions, which had prompted some investors to reconsider their positions. Paul Donovan, Chief Economist at UBS Global Wealth Management, indicated that as speculative pressures have eased, gold could start to reflect market sentiments regarding political risks.
In parallel, Britain’s smaller FTSE 250 index has also made waves, reaching a four-year high at 23,520 points. This index, which includes medium-sized companies, is reflecting positive sentiment in the equity markets. Plus500, a trading platform, emerged as the top performer with a significant rise of 7% after successfully launching an event-based prediction market.
Grocery inflation in the UK has also reported a decrease, making headlines as it dropped to a nine-month low of 4.0% in January, as per Worldpanel by Numerator. This easing of inflation is timely, providing relief to households amid rising costs and is noteworthy for the Bank of England.
Over in India, stock market gains were observed after PM Modi and Trump reached an agreement on trade, leading to a designed reduction in US tariffs on Indian exports. This has strengthened market hopes, as the Sensex stock index surged by 2.8%.
In Asia, South Korea’s KOSPI index made a strong recovery with a 6.8% rise, while Japan’s Nikkei share average closed at a record high of 54,720.66 following a widespread stock market rally.
Elon Musk’s SpaceX has reported a monumental acquisition of his AI venture, xAI, for $250 billion, consolidating his various business operations under a substantial umbrella valuation of $1.25 trillion, as SpaceX gears up for a public offering later this year.
Overall, the markets are witnessing a pronounced turnaround after a volatile period, with opportunities emerging for investors navigating these changing dynamics.
