The FTSE 100 finished slightly higher on Monday, with strong gains in mining stocks offsetting losses in NatWest after the bank agreed to acquire wealth manager Evelyn Partners, while political uncertainty limited the upside.
The blue-chip FTSE 100rose 0.16%, edging closer to last week’s record highs. Meanwhile, the FTSE 250gained 0.57%.
Sentiment improved globally after Wall Street rebounded from last week’s sell-off, which had been driven by concerns that artificial intelligence could disrupt the business models of software and data services companies.
Mining stocks led the advance in London. Shares in precious metals miners surged 5.3% as gold prices climbed above $5,000 an ounce. Rising copper prices also lifted the broader industrial metals sector, with the relevant index up 3.8%.
Gains in equities came despite mounting political turmoil. UK prime minister Keir Starmer faced renewed pressure after his chief of staff, Morgan McSweeney, resigned on Sunday. McSweeney said he accepted responsibility for advising Starmer to appoint Peter Mandelson as ambassador to the United States, despite his known links to Jeffrey Epstein.
Starmer on Monday rejected calls to step down, including demands from his party’s leader in Scotland. Opinion polls suggest he remains deeply unpopular following a series of policy U-turns, while recent rises in long-dated borrowing costs indicate markets may be pricing in the risk of his leadership coming under further strain.
