The FTSE 100 has closed at a record high of 9,787, up 1.1%, as global stocks rebounded on hopes that the historic US government shutdown is nearing its end. The UK’s blue-chip index beat its previous all-time high set on 30 October, driven by gains in mining giant Fresnillo, which climbed over 6%, and drinks maker Diageo, which leapt 5.5% after appointing a new chief executive.
The surge was mirrored across global markets, with Wall Street’s main indexes opening higher after signs of progress to end the 40-day US government shutdown that has disrupted the economy. The tech-heavy Nasdaq Composite rose 2%, following a week in which shares in tech giants were battered by fears of an artificial intelligence bubble.
Analysts say the potential resolution of the US impasse is a positive for markets. “A possible end to the longest running US shutdown is a positive for markets,” said Prashant Newnaha of TD Securities. “Our expectation is that the next step is for a House vote on Wednesday, with the government set to re-open this Friday.”
The optimism extended to Asian shares, with South Korea’s Kospi up 3%, Japan’s Nikkei 1.3% higher and Hong Kong’s Hang Seng rising 1.6%. In the UK, the FTSE 250 mid-cap index also gained over 1%.
The surge in global stocks comes as a relief after last week’s market turmoil, which saw the Nasdaq suffer its worst week in more than seven months amid deepening worries about the jobs market and the tech sector. Traders are now hoping the end of the US shutdown and stabilising economic data will help restore risk appetite, particularly in growth and AI-linked stocks.
