London’s FTSE 100 closed in on record highs on Tuesday, rising 0.5% to 10,836, as a sharp rally in Unilever offset AI-driven selling that dragged US and Asian markets lower.
The index’s all-time closing high stands at 10,910.55, set on 27 February 2026, according to London Stock Exchange data.
Unilever Drives FTSE 100 Record Highs Push
Unilever shares surged 6% to top the FTSE 100 leaderboard after the consumer goods group reported its fastest increase in volume growth in more than a decade.
The H1 2025 results webcast showed underlying sales growth of 3.4% for the first half, with volume improvements described as broad-based and positive across all business groups. Market volume growth across the sector ran at around 1.3% over the same period, according to the company.
Adam Vettese, market analyst at eToro, said Unilever had delivered ‘a far stronger first half performance than the cautious low end guidance had suggested.’
‘The numbers delivered genuine volume acceleration that suggests the long promised shift from price led to demand-led growth is starting to stick,’ Vettese added. ‘Power Brands are pulling ahead decisively, emerging markets are doing the heavy lifting, and the business is delivering this while still protecting margins.’
The Unilever investor results page shows Power Brands delivering volume growth above 2% on a two-year compound annual growth rate basis in the first half.
Barclays Falls 5% Despite Profit Beat
Barclays was the session’s worst performer, dropping 5%, despite second-quarter pre-tax profit of £3.2 billion beating the consensus forecast of £3.1 billion.
The board also sanctioned an increase in the dividend and topped up the share buyback programme by £1 billion. The Barclays H1 2025 results presentation shows total capital distributions for the half of £1.4 billion, comprising a 3.0 pence dividend per share and a £1.0 billion buyback. The group’s CET1 ratio stood at 14.0% at the end of Q2 2025.
Russ Mould said the market’s cool response ‘may lie with the mix of earnings and concerns over quality rather than quantity, as the investment bank provided the bulk of the upside profit surprise while the sale of an American Airlines co-branded credit card operation and the acquisition of Best Egg gave a bit of a messy feel to the numbers.’
AI Selloff Hits US and Asian Markets
The FTSE 100’s resilience stood in contrast to steep declines elsewhere. South Korea’s KOSPI shed 10% and Japan’s main index lost 4%, with the Nasdaq set to open lower as investors reassessed AI-sector valuations.
Susannah Streeter, Chief Investment Strategist at Wealth Club, said: ‘The AI powered rollercoaster has taken another lurch downwards, with chip stocks falling sharply, as investors reassess rising competition and future demand. Just as geopolitical tensions appear to be easing slightly, there’s been a refocus on the runners and riders of the tech revolution, with a new kid on the chip block causing mayhem.’
London’s relative insulation from the tech rout reflects the FTSE 100’s composition: the index carries limited direct exposure to US semiconductor names, and its heavy weighting in financials, consumer staples, and resources has made it a diversifier during bouts of global volatility.
That dynamic helped the index seal its strongest annual gain in 16 years in 2025, rising approximately 21% to close the year at 9,931, according to Reuters. The index has added a further 9% since that close to reach Tuesday’s level.
Elsewhere on the FTSE 100, Admiral was among the session’s better performers after Citigroup raised its rating on the insurer to neutral. Croda gained 3.8% on the back of interim results.
Another heavy slate of FTSE 100 results is due on Wednesday. Whether Barclays’ investment bank-driven beat reopens the debate about divisional earnings quality will be a focus for analysts when management speaks to investors later in the day.
