FTSE 100 Hits Record High as Global Markets Rally on Hopes of US Shutdown Deal
The FTSE 100 surged to a record high on Monday, lifted by a global market rally amid growing optimism that the historic US government shutdown could soon be over.
London’s blue-chip index closed up 1.1% at 9,787, surpassing its previous record finish on October 30, and briefly touching a new intraday high of 9,800. The FTSE 250 also climbed more than 1% as investor sentiment brightened across major markets.
The day’s gains were led by Fresnillo, which jumped more than 6%, and Diageo, up 5.5% after the drinks giant announced the appointment of a new chief executive.
The rally followed encouraging developments in Washington, where the US Senate advanced a measure to reopen the federal government and end a 40-day shutdown that has furloughed federal workers, delayed food aid, and disrupted air travel.
Eight Democratic senators joined Republicans in backing an amended funding bill that would keep the government open until January 30. According to crypto prediction market Polymarket, the odds of the shutdown ending by month’s end have climbed to 98%.
On Wall Street, stocks opened sharply higher following the breakthrough. The Nasdaq Composite jumped 2%, rebounding from last week’s tech sell-off, as investors rotated back into high-growth names. Nvidia shares rose nearly 5% in early trading, while Amazon climbed more than 3%.
The rebound came after Donald Trump acknowledged last week that the shutdown was beginning to weigh on financial markets. Over the weekend, the US president proposed a $2,000 “tariff dividend” for Americans—a move analysts interpreted as an attempt to stimulate the economy.
Asian markets also joined the global upswing overnight, with South Korea’s Kospi up 3%, Japan’s Nikkei rising 1.3%, and Hong Kong’s Hang Seng gaining 1.6%.
Prashant Newnaha, analyst at TD Securities, said: “A possible end to the longest-running US shutdown is a positive for markets. Our expectation is that the next step is for a House vote on Wednesday, with the government set to reopen this Friday.”
