The FTSE 100 share index closed at a new record high of 9,787 points on Monday, up 1.08%, as global markets rallied on hopes of an end to the longest US government shutdown in history. The index also hit an intraday high of 9,800 points during the session.
The rally was driven by a US Senate vote to advance a funding bill, with eight Democratic and Independent senators breaking ranks to support the compromise. The bill would reauthorise funding and reverse some employee layoffs, but does not guarantee the extension of healthcare tax credits, a key Democratic demand.
Investor sentiment was buoyed across the globe, with Japan's Nikkei gaining 1.25% and the pan-European Stoxx 600 rising 1.5%. In the UK, the FTSE 250 index also climbed nearly 1% to 21,983 points, recovering much of its losses from the previous week.
Among the top risers on the FTSE 100 were precious metals miner Fresnillo, up 7.2%, and drinks maker Diageo, which gained 4.6% after appointing Sir Dave Lewis as its next CEO. Neil Wilson, UK investor strategist at Saxo Markets, said hopes of an imminent end to the shutdown lifted markets after a bruising week for tech stocks.
The FTSE 100 has gained almost 20% so far this year, outpacing the Stoxx 600's 12.9% rise. The record close comes as the US shutdown, which began in December, has weighed on consumer confidence, with data on Friday showing sentiment at its weakest in over three years.
