The FTSE 100 index recorded its best daily performance in six months on Tuesday, closing 118 points higher at 10,122 points, a gain of 1.18 per cent. This marks a new closing high for the UK's blue-chip index, surpassing the 10,000-point milestone reached for the first time last Friday.
The rally was led by precious metals producer Fresnillo, which rose 5.2 per cent on the back of higher gold prices, and retailer Next, which gained 4.9 per cent after upgrading its profit forecasts. Mining and pharmaceutical companies also contributed to the gains.
Gerald Toledano, group head of equities at FTSE Russell, described the index crossing 10,000 points as a landmark moment, highlighting the dynamism of British companies and London's role as a global financial centre. He noted that around three-quarters of FTSE 100 revenue comes from overseas, making the index a better gauge of the world economy than the UK alone.
Analysts attributed the surge to sustained investor optimism, with Danni Hewson of AJ Bell noting that sectors such as finance, pharma, energy and retail are back in favour as investors seek consistent, income-generating stocks. Neil Wilson of Saxo Markets added that geopolitical tensions, including the US intervention in Venezuela, have been largely shrugged off by markets for now.
