FTSE 100 hits fresh record high
Newsflash: The UK’s FTSE 100 share index has hit a new record high, as hopes of an end to the US government shutdown lift markets.
The ‘Footsie’, which tracks the largest one hundred companies listed in London, just hit 9,791.31 points, over the previous intraday high of 9787.63 points set on 29 October.
It has risen by just over 1% today, amid a global market rally after the US Senate took the first step to end the longest government shutdown in history (see today’s introduction for the details).
Drinks maker Diageo is still among the top risers, now up 4.6%, as the City welcomes the appointment of Sir Dave Lewis as their next CEO.
Precious metals maker Fresnillo (+7.2%) is now leading the charge – having gained around 270% so far this year as the gold and silver prices have rallied strongly in 2025.
Neil Wilson, UK investor strategist at Saxo Markets, explains:
Hopes of an imminent end to the US government shutdown sent stock markets higher after a bruising week for tech amid an AI-related crisis of confidence hobbled the broader market.
On Sunday the Senate voted 60-40 on a key step towards reopening. Worries about the longest shutdown in history had driven consumer confidence to its weakest level in more than three years, a whisker above its lowest ever level, data on Friday showed. A private survey meanwhile showed the largest number of October layoffs in 22 years.
The deal being voted on would fund the government through to January…apart from confidence it could mean we start to get a chunk of missing economic data, which may introduce some extra volatility.
Key events
Back in New York, the Dow Jones industrial average has lost most of its earlier gains – now up just 0.07% today.
The UK’s index of medium-sized companies has also rallied today.
The FTSE 250 index is up almost 1% at 21,983 points, which claws back a significant amount of its losses last Thursday and Friday.
The eight Democratic and Independent senators who broke ranks with the party to advance a bill that would end the government shutdown – the longest in US history – have defended their decisions amid furor from their party and base.
Angus King, the Independent lawmaker from Maine who caucuses with Democrats, has called the compromise bill “the opening of an opportunity.”
Maggie Hassan, the Democratic senator from New Hampshire, who was part of the bipartisan talks to strike a deal with Republicans, addressed the fact that the revised bill forgoes the Obamacare subsidies that Democrats made a central part of their negotiations.
“Congress has one month to engage in serious, bipartisan negotiations to extend the Affordable Care Act’s expiring tax cuts for health insurance,” Hassan wrote in a statement, referring to the vote that GOP lawmakers promised Democrats.
“My Democratic colleagues and I have been ready to work on this for months. With the government reopening shortly, Senate Republicans must finally come to the table – or, make no mistake, Americans will remember who stood in the way.”
FTSE 100 hits 9,800 points for first time
Boom! The FTSE 100 share index has now climbed to a new high of 9,800 points, up 1.2% today.
At this rate, City traders will need to order some “FTSE 10,000” hats.
FTSE 100 on track for 20% gains this year
Today’s rally means the FTSE 100 share index has gained almost 20% so far this year, a stellar run for the London stock market.
That outpaces any rival markets – the pan-European Stoxx 600 is up a more modest 12.9% since the start of January.
FTSE 100 hits fresh record high
Newsflash: The UK’s FTSE 100 share index has hit a new record high, as hopes of an end to the US government shutdown lift markets.
The ‘Footsie’, which tracks the largest one hundred companies listed in London, just hit 9,791.31 points, over the previous intraday high of 9787.63 points set on 29 October.
It has risen by just over 1% today, amid a global market rally after the US Senate took the first step to end the longest government shutdown in history (see today’s introduction for the details).
Drinks maker Diageo is still among the top risers, now up 4.6%, as the City welcomes the appointment of Sir Dave Lewis as their next CEO.
Precious metals maker Fresnillo (+7.2%) is now leading the charge – having gained around 270% so far this year as the gold and silver prices have rallied strongly in 2025.
Neil Wilson, UK investor strategist at Saxo Markets, explains:
Hopes of an imminent end to the US government shutdown sent stock markets higher after a bruising week for tech amid an AI-related crisis of confidence hobbled the broader market.
On Sunday the Senate voted 60-40 on a key step towards reopening. Worries about the longest shutdown in history had driven consumer confidence to its weakest level in more than three years, a whisker above its lowest ever level, data on Friday showed. A private survey meanwhile showed the largest number of October layoffs in 22 years.
The deal being voted on would fund the government through to January…apart from confidence it could mean we start to get a chunk of missing economic data, which may introduce some extra volatility.
US airline stocks are also benefiting from the deal to, possibly, end the US government shutdown soon.
Delta Air Lines are up 1.05% with American Airlines up 0.9%.
That reflects hopes that the US government shutdown will end before Thanksgiving, allowing American families to fly across the country for the holiday break.
Technology firms are leading the risers on the S&P 500 in early trading.
AppLovin, the marketing tech company, are up 8%, followed by chip tech company Micron (+7%), hard drive maker Western Digital (+6.1%), and US data firm Palantir (6.4%).
It’s just another manic Monday in the markets, reports Kathleen Brooks, research director at XTB.
Brooks reports that the beginning of the end of the shutdown is leading to a bounce in stocks, led by tech, explaining:
The Monday effect has seen stock markets tend to perform well at the start of the week. In 2025, the S&P 500 has posted a gain 69% of the time on the first day of the week, according to Bloomberg.
This could be part of the dip-buying that has taken markets by storm this year and helped spur recovery in stocks after the selloff in April, with investors willing to buy any lows after a weekend break.
Wall Street rises on shutdown deal hopes
Ding ding goes the opening bell on the New York stock exchange, heralding a burst of share buying.
The main share indices are all higher, after the US Senate took an important step towards ending the US government shutdown, by voting to advance a compromise bill to reauthorize funding and undo the layoffs of some employees.
Hopes that the government will reopen soon, ending the economic disruption caused by the shutdown, have lifted the Dow Jones Industrial Average by 301 points, or 0.64%, to 47,288 points.
The broader S&P 500 index is up 1.1% in early trading, while the tech-focused Nasdaq is up 1.7%.
A quick recap
Global markets have rallied today after the US Senate took the first step to end the longest government shutdown in history.
The news that the Senate had narrowly advancing a compromise bill which will reauthorize funding and undo the layoffs of some employees has cheered investors worldwide.
In London, the FTSE 100 share index came within a whisker of hitting a new all-time high in morning trading. It’s currently up 0.9% at 9,770 points, just 18 points shy of a new peak.
The pan-European Stoxx 600 index has jumped by 1.4%, with gains in Frankfurt, Paris, Madrid and Milan as well as London.
Wall Street looked due to open higher with Nasdaq futures up 1.5% while S&P 500 futures have risen by 0.9%.
The oil price has strengthened too, with Brent crude now up 0.5% at $63.92 per barrel, while gold jumped 2%.
Tom Stevenson, investment director at Fidelity International explains:
“Investors have come out of the weekend in a much better mood than they entered it.
“Last week ended very much on the back foot, as AI-focused US tech stocks lost close to $1trn in value in the worst week for the sector since Donald Trump’s tariff announcements in April.
“But markets rallied on Monday after the US Senate began moves to end a month-long shutdown of the Federal government. Germany’s Dax was up 1.5%, building on a strong recovery in Asia, where South Korea’s Kospi index was 3% higher and shares in both Hong Kong and Japan rose more than 1%.
“Eight Democrats crossed party lines to endorse a compromise plan that keeps the government funded until the end of January, reversing lay-offs initiated by the White House last month.
