The London Stock Exchange‘s FTSE 100 record high of 10,989 points is within striking distance after the index logged five consecutive days of gains, touching 10,875 by 11:45am on Tuesday, up 0.18 per cent on the session.
The index’s composition, light on technology and artificial intelligence stocks, has shielded it from the volatility that rattled global tech shares in the run-up to Nvidia’s quarterly results.
Miners Drive the Push Toward a FTSE 100 Record High
Heavyweight mining stocks have been the clearest engine of the rally. Glencore gained 7.4 per cent over the five-day period to trade at 592.9p, while Rio Tinto added 8.8 per cent and Fresnillo climbed 10 per cent, as investors rotated into precious metals on a weaker US dollar and concerns over American debt and inflation.
The gains carry an additional dimension: Rio Tinto has confirmed it is in preliminary discussions with Glencore regarding a possible combination, potentially structured as an all-share acquisition of Glencore by Rio Tinto via a court-sanctioned scheme of arrangement. Under UK takeover regulations, Rio Tinto must announce a firm intention to proceed or walk away by a specified deadline.
Banks and pharmaceuticals also contributed to the advance, sectors similarly insulated from the AI trade.
Susannah Streeter, chief investment strategist at Wealth Club, said: ‘The FTSE’s relatively low exposure to the tech sector is also helping it avoid some of the turbulence rippling through global tech shares, giving investors a different mix of sectors to rely on.’
Nvidia Results and Oil Markets as Risk Factors
Nvidia’s quarterly figures, now published, show the scale of AI-infrastructure demand the FTSE had been sidestepping. The company reported Q2 fiscal 2027 revenue of $96.2 billion, up 106 per cent year-on-year and 18 per cent from the prior quarter. Data Centre revenue reached $89 billion, equivalent to 92.7 per cent of total sales, according to Investing.com, driven by hyperscaler spending up 138 per cent year-on-year.
Russ Mould, investment director at AJ Bell, had said ahead of the release that the results would ‘have the power to move markets up or down’ as investors looked to gauge whether AI momentum was slowing.
Richard Hunter, head of markets at Interactive Investor, said: ‘Investors paused for calm before the potential storm ahead this week, with consumer confidence, GDP, inflation, Nvidia and Jackson Hole all in focus.’
Oil markets present a separate headwind. Brent crude fell 2.3 per cent in early trading to $89.7 (£65.8), with the subdued reaction to US threats against Iran potentially capping energy-sector gains. Streeter said: ‘For investors it’s still highly unclear whether this stance will force the conflict towards a breakthrough or simply add another layer of uncertainty.’
A Shrinking Market Still Chasing Records
The rally unfolds against a less comfortable structural backdrop. In 2024, more companies delisted from London than in any year since the 2008 financial crisis, with Ashtead Group, CRH, and Flutter alone accounting for almost £120 billion in FTSE 100 market capitalisation that migrated to the New York Stock Exchange. Fewer than 1,700 companies now remain listed in London, down from nearly 2,500 a decade ago.
The FTSE 100, which launched on 3 January 1984 and carries a net market capitalisation of approximately £2,569,574 million, has nonetheless held its index-level appeal for investors seeking exposure away from the US technology trade.
Whether the index can clear 10,989 points this week depends on how global markets absorb the Nvidia numbers, the Jackson Hole policy signals, and the trajectory of the dollar into the weekend.
