FTSE 100 at record highs: London soars on gold, copper and the long wave of Big Tech

The British index’s new all-time highs reflect the strength of commodities and a global risk-on environment, despite lingering macroeconomic uncertainties.

The FTSE 100 has reached new all-time highs, confirming a particularly strong start to the year for the London stock market. This outcome is far from accidental and rests on a solid combination of sectoral and macroeconomic factors, with gold, copper and global technology sentiment acting as the main catalysts.

The first major driver of the rally is the boom in commodities, especially precious and industrial metals. Gold has recently set new records - above $5,500 per ounce - supported by strong demand as a safe haven amid geopolitical uncertainty and expectations of less restrictive monetary policies. This has had a direct impact on mining stocks, which carry significant weight in the FTSE 100’s composition, pushing major resource-sector companies higher.

At the same time, copper has also benefited from elevated prices, fueled by long-term prospects linked to the energy transition, electrification and global infrastructure investment. The Red Metal has now reached $14,400 per tonne. UK-listed companies exposed to industrial metals have therefore strengthened their positive contribution to the index, making the resources sector one of the pillars of the upward move.

Global Big Tech momentum has also influenced the British index, despite its relatively limited exposure to the technology sector compared with other major indices. Record highs reached by large US tech companies have improved overall market sentiment, encouraging greater risk appetite across Europe as well. This constructive environment has supported UK cyclical sectors - from banking to energy - amplifying the upward push.

Overall, the FTSE 100’s new record reflects a solid market structure, anchored in commodity-driven fundamentals and reinforced by a favorable international backdrop. Uncertainties related to inflation, interest rates and global growth remain in the background, but for now London is fully benefiting from a rare combination: strong commodities, incoming capital flows and investor confidence.

Andrea Pelucchi