Good morning. UK markets are flirting with rarefied territory as blue-chip stocks set their sights on another record-breaking session.
Whether the FTSE 100 can decisively clear the 10,035.18 peak set on January 2 remains an open question, but early signs suggest it may come close. The index is expected to open around 30 points higher on Tuesday at 10,034.57, tracking a global equity rally fuelled by renewed enthusiasm for technology shares and a steadier tone in energy markets.
Momentum has been building across Asia, where most major indices advanced in step with Wall Street’s strong start to the year. In the US, the Dow Jones Industrial Average closed at a fresh record, helped by a resurgence in artificial intelligence-linked stocks.
Heavyweights tied to the AI theme, including Amazon and Meta Platforms, led the charge, alongside solid gains in energy majors. The broader S&P 500 and Nasdaq Composite also moved higher, buoyed by softer US manufacturing data that investors interpret as giving the Federal Reserve more room to consider interest rate cuts.
Geopolitics, for now, have taken a back seat. Markets appeared largely unfazed by the sudden extradition of Venezuelan president Nicolás Maduro to the United States. Oil prices steadied after a volatile reaction to the news, with analysts pointing out that Venezuela’s ability to meaningfully increase crude production in the near term remains limited.
Gains were broad-based across Asia, with Hong Kong, Tokyo and Shanghai leading the advance. In Seoul, shares in Hyundai jumped after the company unveiled a new AI-powered robot, although some of those early gains later faded. Australian markets bucked the regional trend and slipped slightly, even as BlueScope Steel surged on reports of a potential US$8.8bn takeover approach.
For now, optimism is firmly in control—and the FTSE 100 is edging ever closer to uncharted ground.
