FTSE 100 Soars to New Heights Amidst BP Surge

London’s FTSE 100 achieved a record high, bolstered by BP’s significant rise due to Elliott Management's investment. The energy sector saw a boost as oil prices increased, while precious metals demand surged. Investors anticipate key macroeconomic indicators and speeches from UK and US central bank figures this week.

London's blue-chip FTSE 100 reached an unprecedented peak on Monday, fueled by significant gains from oil giant BP and an uptick in precious metal miners.

The index experienced a 0.8% increase in its strong start to the week. BP led the charge with a 7.4% surge, marking its largest daily jump in two years. This came following Elliott Management's stake acquisition in the company, expected to drive strategic changes.

The energy sector rose 2.1% overall, aided by a global rise in oil prices. Precious metals and mining climbed 3.6%, amid gold's steady rise driven by safe-haven demand, sparked by inflation and tariff concerns from President Trump's recent policy moves.

Drax secured a 3.8% increase after finalizing a subsidy reduction deal with the UK government. Across Europe, the STOXX 600 index saw a 0.6% rise, indicating investor resilience despite anticipated U.S. tariffs on steel and aluminum.

British investors keenly await GDP data and industrial production figures, while upcoming speeches from Bank of England figures, including Governor Andrew Bailey, may provide key economic insights. U.S. Federal Reserve Chair Jerome Powell's upcoming Congressional appearance will focus on tariff impacts.

(With inputs from agencies.)