London's Blue-Chip Index Reaches Unprecedented Peak
The UK's premier stock market index, the FTSE 100, achieved a historic milestone on Monday, 10 November 2025, closing at a record high of 9,787.15. This represented a substantial gain of 104.58 points, or 1.1%, marking its highest closing level in history. During the trading session, the index even briefly surpassed the significant psychological barrier of 9,800 for the first time, reaching an intra-day peak of 9,800.35.
US Political Breakthrough Fuels Global Rally
The primary catalyst for this bullish sentiment was a major development in United States politics. The US Senate, led by Republicans, approved a procedural vote that clears the path for a formal debate on a motion to resume funding to federal agencies. This crucial step raises hopes for a resolution to the longest government shutdown in American history.
Marc Chandler of Bannockburn Capital Markets commented, "The prospect that the longest US government shutdown in history may end in the next few days has bolstered risk appetites." This optimism was not confined to London; European markets also rallied strongly, with Paris's CAC 40 closing up 1.5% and Frankfurt's DAX 40 soaring 1.7%.
Corporate Moves and Market Impact
Several individual companies saw significant movement. In a major leadership announcement, drinks giant Diageo saw its shares jump 5.2% after appointing former Tesco boss Dave Lewis as its new chief executive, effective start of 2026. Analysts at Jefferies praised the move, stating it "ends the uncertainty over leadership transition and brings a heavyweight leader."
The rising price of gold, which traded higher at $4,091.42 an ounce, boosted mining stocks. Fresnillo and Endeavour Mining climbed 5.4% and 4.5% respectively.
On the FTSE 250, which also finished the day strongly up 194.88 points at 21,968.27, refractory products maker RHI Magnesita jumped an impressive 17% after reporting improved second-half performance.
Economic Context and Looking Ahead
As the countdown to the UK's Autumn Budget continues, Chancellor Rachel Reeves told the BBC it would be a "difficult" budget focused on the cost of living, reducing government debt, and cutting NHS waiting lists. She emphasised themes of "fairness" and growing the economy.
Looking forward, investors are keenly awaiting Tuesday's UK jobs and average earnings data, alongside corporate results from Vodafone and DCC. The potential end of the US shutdown, as noted by Kathleen Brooks at XTB, "comes at the right time" ahead of Thanksgiving, ensuring supply chains function for the critical holiday shopping period.
