FTSE 100 Hits Record as Nvidia and Gold Rally

The FTSE 100 closed at a record high on Monday, rising 1.1%, led by a jump in Diageo after naming former Tesco chief Dave Lewis as CEO, while miners gained alongside stronger gold and copper prices. In the U.S., Nvidia climbed 5.8% and Palantir 8.8% as the S&P 500 rose 1.5% and the Nasdaq 2.3% after progress in Washington toward ending the record government shutdown. Gold reached $4,148 per ounce early Tuesday, its highest since late October.

Equities

The FTSE 100 closed at a record high on Monday, rising 1.1% as global markets rallied on signs that the prolonged U.S. government shutdown may soon end. The FTSE 250 also added 0.9%.

Gains were led by Diageo, which jumped 5.2% after naming former Tesco chief Dave Lewis as CEO. The appointment marks a turning point for the spirits maker, whose shares remain down about 27% this year following disappointing sales and leadership uncertainty.

Miners were another strong spot, with precious metal producers up over 5% as gold reached a two-week high, while industrial metal miners gained 1.4% as copper prices strengthened.

IAG, the owner of British Airways, rebounded 3.4% after its 11.6% slump on Friday when the airline flagged weak U.S. demand.

In the United States, stocks finished sharply higher on Monday after the Senate advanced a bill to end the record-long shutdown. The S&P 500 rose 1.54% to 6,832.43, the Nasdaq jumped 2.27% to 23,527.17,its biggest one-day gain since May and the Dow added 0.81% to 47,368.63.

Tech shares led the rebound after a heavy sell-off last week. Nvidia climbed 5.8%, extending its lead as the world’s most valuable company, while Palantir rallied 8.8% on renewed AI optimism. Tesla added 3.7%, recovering from recent losses in the broader tech pullback.

Eli Lilly rose 4.6% to a record high after Leerink Partners upgraded the stock on confidence in its weight-loss drug pipeline. Meanwhile, Metsera slumped 14.8% after Pfizer secured a $10 billion deal to acquire the company, outbidding rivals in a closely watched takeover battle.

Health insurers fell after the Senate deal to reopen the government excluded extensions to Affordable Care Act subsidies. Centene dropped 8.8%, Humana lost 5.4% and Elevance Health declined 4.4% on the news.

Airlines were also under pressure as staffing shortages and flight cuts continued during the shutdown: United Airlines slipped 1.3%, and American Airlines fell 2.5%.

Forex & Commodities

The US dollar strengthened on Tuesday against both the yen and the Australian dollar as attention turned to upcoming US economic data, expected to resume once the government reopens.

The dollar rose to ¥154.28, its highest level since February, while easing slightly to $0.6520 against the Australian dollar. The yen remained under pressure after Japan’s new Prime Minister, Sanae Takaichi, urged policymakers to move cautiously on rate increases.

The euro was steady at $1.155, while sterling slipped after UK data showed a clear cooling in the labour market during the third quarter.

UK unemployment data released Tuesday morning showed the jobless rate rising to 5.0% in the three months to September, the highest level in four years. The increase to 1.8 million unemployed came alongside HMRC figures showing 32,000 fewer workers on payrolls in October. The data, which precedes Chancellor Rachel Reeves’s budget later this month, adds pressure on the Bank of England to cut interest rates as early as December after signalling last week that inflation has peaked.

The Swiss franc extended its gains for a fourth consecutive session after former US President Donald Trump said Washington was working on a deal with Switzerland to cut the 39% tariff rate.

Gold rose early on Tuesday to a near three-week high, supported by renewed focus on U.S. fiscal spending as lawmakers advanced a bill to end the record-long shutdown. Spot gold was up at $4,137 per ounce after reaching an intraday high of $4,148, its highest since 23 October.

Oil prices also climbed late on Monday, with Brent crude settling at $64.06 a barrel and US West Texas Intermediate closing at $60.13. Gains were driven by refinery outages in the United States and supply disruptions linked to Ukrainian drone attacks on Russian refineries, which offset concerns about rising crude inventories and higher OPEC+ output.