London close: FTSE hits fresh high amid hopes of end to US shutdown

London stocks ended sharply higher on Monday amid hopes that the longest US government shutdown in history could be coming to an end.

The FTSE 100 closed up 1.1% at a new record of 9,787.15, having earlier hit a fresh intraday high of 9,800.

Russ Mould, investment director at AJ Bell, said: "Glimmers of hope that an end might be in sight to the longest running US government shutdown in history put markets in a positive mood.

"A vote in the Senate is an important first step but any agreement still needs to clear a vote in the House of Representatives along with several other hurdles. A key impact on the markets of the impasse, beyond the hit to the wider economy, has been the lack of data as key releases on areas like the jobs market have been delayed.

"This has created a considerable dose of the uncertainty which markets famously hate and it is also hampering the ability of the Federal Reserve to make informed decisions on interest rates."

In this context, it was not a surprise to see investors react positively to signs of progress, Mould said.

In equity markets, precious metals miner Fresnillo and gold miners Hochschild and Endeavour all shone as gold prices advanced amid renewed expectations of a Federal Reserve rate cut, while RHI Magnesita rocketed after a trading update.

Drinks giant Diageo fizzed higher as it named Haleon chair Dave Lewis as its next chief executive. Lewis, the former chief executive of Tesco, will take up the role on 1 January 2026, replacing Debra Crew, who quit in the summer.

Richard Hunter, head of markets at Interactive Investor, said: "The announcement is clearly being seen as a potential inflection point for the group given the new hire’s proven ability in brand building, and where the shares have been under some considerable pressure of late, having fallen by 28% so far this year.

"The news may prompt investors to reconsider the strength of Diageo’s premier brand portfolio."

SSE gained ahead of interim results on Wednesday and following a report the power generator and network operator is mulling various funding options, as it looks to bolster its balance sheet and fund grid spending. According to Bloomberg, options being explored with advisors include a share sale that could raise billions.

IAG was also in the black, having tumbled last week after softer-than-expected third-quarter results, and as JPMorgan reiterated its ‘overweight’ rating on shares of the BA and Iberia owner despite the disappointng results.

"IAG missed Q3 25 expectations driven by softer than expected yields, including a weaker Transatlantic, and despite our expectations did not announce a new share buyback," it said. "While this was disappointing, we expect a positive Q4 earnings trajectory driven by sequentially improving revenue/costs, allowing for increasing capital returns, which are likely to be announced with the full-year results in February 2026."

On the downside, global fund administration platform JTC slumped after saying it had agreed a £2.3bn takeover by private equity firm Permira, beating interest from rival Warburg Pincus. JTC shareholders would receive £13.40p a share, below Friday’s closing price of £13.58. Shares in the company have surged from 897p on August 13 when Permira made its first offer.

IT services provider Kainos was also down as it raised its interim dividend and announced a new share buyback programme despite a double-digit decline in first-half profits due to increased investment and higher labour costs.

Iron ore company Ferrexpo fell as it said the supply of power to its operations has been affected and production and exports will be interrupted following attacks on Ukrainian energy infrastructure early on Saturday.

Market Movers

FTSE 100 (UKX) 9,787.15 1.08%
FTSE 250 (MCX) 21,968.27 0.90%
techMARK (TASX) 5,507.20 0.79%

FTSE 100 - Risers

Fresnillo (FRES) 2,332.00p 6.39%
Flutter Entertainment (DI) (FLTR) 17,595.00p 5.55%
Diageo (DGE) 1,816.50p 5.21%
SSE (SSE) 1,943.00p 3.99%
International Consolidated Airlines Group SA (CDI) (IAG) 378.70p 3.41%
Barratt Redrow (BTRW) 388.60p 3.35%
Barclays (BARC) 417.25p 3.10%
Burberry Group (BRBY) 1,182.50p 3.10%
Entain (ENT) 753.00p 2.98%
WPP (WPP) 286.90p 2.79%

FTSE 100 - Fallers

London Stock Exchange Group (LSEG) 9,072.00p -2.14%
Rightmove (RMV) 562.60p -1.92%
Hikma Pharmaceuticals (HIK) 1,555.00p -1.71%
Compass Group (CPG) 2,479.00p -1.04%
BT Group (BT.A) 177.50p -1.03%
Coca-Cola Europacific Partners (DI) (CCEP) 6,880.00p -1.01%
Severn Trent (SVT) 2,795.00p -0.85%
Unilever (ULVR) 4,589.00p -0.63%
National Grid (NG.) 1,165.00p -0.47%
Relx plc (REL) 3,180.00p -0.44%

FTSE 250 - Risers

RHI Magnesita N.V. (DI) (RHIM) 2,335.00p 17.10%
Ceres Power Holdings (CWR) 411.60p 16.01%
Hochschild Mining (HOC) 361.40p 7.82%
Watches of Switzerland Group (WOSG) 424.60p 5.78%
Ocado Group (OCDO) 207.10p 5.13%
Allianz Technology Trust (ATT) 533.00p 4.92%
4Imprint Group (FOUR) 3,405.00p 4.77%
Polar Capital Technology Trust (PCT) 473.00p 4.65%
Future (FUTR) 620.00p 4.47%
Endeavour Mining (EDV) 3,142.00p 4.45%

FTSE 250 - Fallers

Me Group International (MEGP) 164.40p -6.06%
JTC (JTC) 1,300.00p -4.27%
Baltic Classifieds Group (BCG) 255.00p -3.23%
Helios Towers (HTWS) 162.80p -2.63%
Vietnam Enterprise Investments (DI) (VEIL) 722.00p -1.77%
Oxford Biomedica (OXB) 611.00p -1.61%
W.A.G Payment Solutions (EWG) 92.20p -1.50%
Chemring Group (CHG) 535.00p -1.47%
Drax Group (DRX) 711.50p -1.39%
Oxford Nanopore Technologies (ONT) 138.10p -1.36%