London’s top share index soared to another record high as it was boosted by strong trading from commodity and housing stocks.
It was another strong trading day in London’s equity markets despite wider concerns over how Donald Trump’s tariffs could impact the global economy.
The FTSE 100 finished 67.27 points, or 0.77%, higher to end the day at 8,767.80.
The index was partly pulled higher by a jump in the value of BP, after an activist investor reportedly built up a stake in the oil giant.
The stock hit its highest level for six months, following weekend reports that US firm Elliott Investment Management had snapped up a stake.
BP, which declined to comment, saw shares lift by 7.4% to 465.15p as the reports fuelled speculation of a shift in strategy at the firm.
Elsewhere, in mainland Europe sentiment was also firmly positive, with the German Dax also around record high levels.
The Cac 40 ended 0.42% higher for the day and the Dax index was down 0.67%.
Across the Atlantic, the US markets made gains, with domestic steel firms rocketing in value after President Trump confirmed plans for new tariffs on steel and aluminium imports.
Chris Beauchamp, chief market analyst at IG, said: “Stocks have shrugged off the myriad concerns of last week and, led by big tech, have made a solid start to the week.
“Two weeks ago saw the DeepSeek AI news roil markets, and a week ago it was the Mexico/Canada/China tariffs, but the third time has been the charm for investors, who have surged back into the market despite recent developments.
“As ever, markets climb the wall of worry.”
Meanwhile, sterling witnessed a slight decline amid concerns that Mr Trump’s tariff plans could stoke inflation and lead to more interest rate cuts.
The pound was down 0.18% at 1.238 US dollars and was up 0.02% at 1.200 euros when London’s markets closed.
In company news, Drax had another positive session after the Government confirmed it will continue to provide the wood-burning power station with subsidies.
However, the Government said it will reduce payments to the firm as part of the extended scheme. Shares in Drax lifted by 3.8% to 659p.
British communication equipment firm Filtronic saw shares surge after it secured a new contract with Elon Musk’s SpaceX, worth almost £17 million.
Shares were 10% higher at 102p after it said it is now confident it will beat revenue and profit guidance for the next two years as a result.
English winemaker Gusbourne left a sour taste for investors after it ended talks with prospective buyers and said it is no longer looking at a sale.
Shares dropped by 44.7% to 21p as majority shareholder Lord Ashcroft called for the business to consider abandoning its stock market listing as a result.
Elsewhere, the price of a barrel of Brent crude oil was up by 1.62% to 75.87 dollars (£61.27) as markets were closing in London.
The biggest risers on the FTSE 100 were BP, up 31.9p to 465.15p, Fresnillo, up 37p to 802p, Endeavour Mining, up 56p to 1,781p, Pershing Square, up 120p to 4,366p, and Barratt Redrow, up 11.9p to 446.7p.
The biggest fallers on the FTSE 100 were IAG, down 12.9p to 353.4p, CocaCola HBC, down 52p to 2,984p, BAE Systems, down 16.5p to 1,180.5p, easyJet, down 6.8p to 523.2p, and Diageo, down 26p to 2,196p.
