The FTSE 100 surged to a record close on Monday, finishing above 9,780 for the first time, as optimism grew that Washington was moving closer to ending the US government shutdown.
The blue-chip index rose 1.1% to 9,787.15, its highest ever closing level. The FTSE 250 climbed 0.9% to 21,968.27, while the AIM All-Share advanced 1.1% to 757.54.
The rally followed a risk-on session across global markets after the US Senate approved a procedural vote to begin debate on a bill that could reopen federal agencies. The vote saw several Democrats break ranks to support the Republican-led motion, raising hopes the longest shutdown in US history could soon end.
European markets also celebrated, with the CAC 40 in Paris up 1.5% and Frankfurt’s DAX 40 soaring 1.7%.
Attention is now turning to the upcoming Autumn Budget at the end of November. Chancellor Rachel Reeves said the focus will be on tackling the cost of living, cutting NHS waiting lists, and reducing national debt. Speaking to the BBC, Reeves called it a “difficult” but “fair” budget aimed at supporting growth while maintaining fiscal discipline.
Among individual movers, Diageo climbed 5.2% after naming former Tesco boss Dave Lewis as its next chief executive. Lewis, known as “Drastic Dave” for his turnaround record at Tesco and Unilever, will take the reins in early 2026.
Rising gold prices boosted Fresnillo and Endeavour Mining, which gained 5.4% and 4.5% respectively, while Hochschild Mining jumped 8% on the FTSE 250.
Elsewhere, Entain advanced 3% after an upgrade to ‘buy’ from Investec, while IAG recovered 3.7% following steep losses on Friday linked to soft US travel demand.
RHI Magnesita continued its strong run, up 17%, after reporting improved second-half trading and confirming EBITDA of €136 million between July and October, in line with guidance and well above first-half levels.
At the other end, JTC fell 4.3% after agreeing to a £2.7 billion all-cash takeover by Permira Advisers at 1,340p per share. RBC Capital Markets noted that some shareholders were hoping for nearer 1,450p, suggesting “a degree of disappointment” and adding that the deal may not yet be finalised.
