Record High Close for UK's FTSE 100 Amid Sector Shifts

The UK's FTSE 100 reached a record high as investors favored financials and pharmaceutical stocks amidst a global energy and metals selloff. Led by shifts after a key U.S. nomination, markets also saw a defensive tilt due to geopolitical tensions. Economic outlook hinges on BoE's upcoming policy meeting.

The UK's FTSE 100 closed at an all-time high on Monday, driven by a pivot toward financial and pharmaceutical stocks, while the energy and metal sectors faced a global downturn. The index rose 1.1% to finish at 10,341.56 points, marking its third consecutive session of gains.

Investors retreated from precious metal miners, suffering a 1.8% drop to a two-week low. Notable declines came from Endeavour Mining and Fresnillo. Market moves followed President Donald Trump's nomination of Kevin Warsh for U.S. Federal Reserve chair, sparking reevaluation of leveraged bets.

With market caution prevailing, defensive sectors thrived. Healthcare surged 2.6% due to AstraZeneca's boost, and banks achieved their highest levels since 2008. Geopolitical tension reductions, particularly U.S.-Iran relations, impacted crude prices, catalyzing a 0.4% decrease in energy stocks.

(With inputs from agencies.)