The FTSE 100 is closing in on the 11,000 mark after soaring to a new record high.
On another bumper session for savers with money tied up in the stock market through their pensions, Isas and other investments, London’s blue-chip index rose more than 100 points to as high as 10,788.25.
The latest rally took gains in the first two months of the year alone to 8.6 per cent with the 10,000 mark only being reached in early January.
Analysts said the London stock market – and the FTSE 100 in particularly – was increasingly back in fashion after years in the doldrums as investors fret about inflated values on Wall Street and global uncertainty.
‘The strong showing from the UK stock market so far in 2026, on top of a major success in 2025, bodes well for changing its reputation from unloved to admired,’ said Russ Mould, investment director at AJ Bell.
City trading rooms are celebrating a strong start to the year for the London stock market
The rally was driven by a surge in mining stocks as higher metals prices boosted gold and silver producer Fresnillo, which rose more than 6 per cent, as well as copper majors including Anglo American, Antofagasta and Rio Tinto, which were up between 2 per cent and 5 per cent.
Strong corporate results from banking giant HSBC, insurer Hiscox and wealth manager St James’s Place also boosted morale.
And there are signs that concerns are easing about the impact of artificial intelligence models on established businesses.
Susannah Streeter, chief investment strategist at Wealth Club, said: ‘London’s Footsie is in a footloose mood again, with higher metals prices buoying mining stocks and corporate results from financial giants surprising on the upside.
‘The index has scaled fresh heights in early trade, with investors showing enthusiasm for London-listed stocks amid global uncertainty.’
Mould of AJ Bell noted, however, that ‘it wasn’t all strawberries and cream’ with drinks giant Diageo down more than 8 per cent after it slashed its dividend and warned of falling sales.
Consumer health group Haleon, the owner of Sensodyne and Panadol, fell around 5 per cent after missing sales targets.
And photo booth operator ME Group dived 20 per cent after delaying the publication of its results.
‘That’s never a good look and it has left investors worried about why this has happened and what the auditor might have found, despite ME Group saying no material issues had been identified,’ said Mould.
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