FTSE 100 Hits Record High as Energy and Mining Stocks Surge

London's FTSE 100 reached a record high, driven by BP's significant gains and rising precious metal miner shares. Key market movements included BP's 7.4% surge after Elliott Management's stake acquisition. Investors remained hopeful despite global economic uncertainties, awaiting UK GDP and manufacturing data, alongside key central bank speeches.

London's blue-chip FTSE 100 index soared to an all-time high this Monday, fuelled by a significant boost in BP's shares and an increase in precious metal miners.

The FTSE 100 climbed 0.8% to record new weekly opening heights, with the domestically inclined FTSE 250 midcap index also ascending by 0.9%. BP was at the forefront of the FTSE 100, notching a remarkable 7.4% gain, marking its largest daily rise in two years. The surge follows investor Elliott Management's acquisition of a stake in BP, setting expectations for strategic changes and board reshuffles.

The energy sector gained around 2.1% amidst rising global oil prices after a three-week decline. Precious metals and mining stocks advanced by 3.6% as gold prices continued soaring due to increased demand driven by President Donald Trump's recent tariff announcements, intensifying trade war and inflation worries.

Drax shares jumped approximately 3.8% after striking a deal with the UK government to halve its subsidies from 2027 to 2031, reinforcing its position as Britain's largest renewable power generator. The pan-European STOXX 600 index closed 0.6% higher, with investors focusing on broader economic indicators despite Trump's unveiling of further tariffs on steel and aluminium imports.

Looking ahead, British investors anticipate GDP estimates for December and preliminary Q4 data, alongside December's industrial and manufacturing output figures. Bank of England's monetary policy committee member Catherine Mann is expected to offer insights with an upcoming speech. In parallel, BoE Governor Andrew Bailey and U.S. Federal Reserve Chair Jerome Powell are slated for key talks that are likely to address the tariff impacts on monetary policies.

(With inputs from agencies.)