FTSE 100 Hits Record Close Amidst Market Turmoil and Resource Rally

London's FTSE 100 reached a record closing high, aided by a surge in resource stocks, despite disruptions following the U.S. administration's contentious stance against Federal Reserve Chair Jerome Powell. Meanwhile, the pound gained strength, affecting Britain's export stocks, and safe-haven assets like gold attracted investors.

London's FTSE 100 secured a new record close on Monday, supported by a rally in resource-focused stocks, countering early market jitters spurred by the Trump administration's renewed critiques of the Federal Reserve chair.

Though the blue-chip index climbed 0.16%, the mid-cap index decreased by 0.06%, snapping its five-day gain streak. Tensions rose after U.S. President Donald Trump suggested possible criminal charges against Fed Chair Jerome Powell over his congressional remarks on a building project. This move cast doubts on the U.S. dollar's safe-haven status, while the pound advanced by 0.5%, creating pressures on British export-driven stocks.

Investor preferences shifted towards safe-haven assets with the precious metal miners' index surging by 5.4%, following gold reaching an unprecedented high. Moreover, the industrial metals and mining sector experienced a 2% boost, fueled by rising copper prices. Financial stocks faced declines, including Barclays and Close Brothers, after Trump proposed capping credit card interest rates. Additionally, the UK's job market showed signs of cooling, maintaining the Bank of England's focus on potential interest rate cuts.

(With inputs from agencies.)