London’s FTSE 100 surged to a three-month high on Thursday morning, jumping 119 points to 10,948 as global equity markets continued to rally following the Democrats’ sweeping victory in the US midterm elections.
The 1.1% advance followed Wednesday’s 190-point rally, lifting Britain’s blue-chip index towards the record high reached at the end of July.
The latest gains mean the FTSE 100 has risen 10% since the beginning of 2026, having crossed the 10,000-point milestone for the first time in January.
Mining companies were among the strongest performers, benefiting from continued strength in precious metal prices and renewed investor demand following the US election results.
Endeavour Mining climbed 5.2%, Fresnillo advanced 3.7% and Rio Tinto gained 3.1%, providing substantial support for the index.
Diageo shares jumped 5.1% after the drinks group reported first-quarter net sales of US$4.9 billion, up 1.2%, and maintained its full-year financial guidance.
The company acknowledged continued weakness in North America but reassured investors by keeping its annual expectations unchanged.
BT Group rose 3.6% after reporting an improvement in its pension scheme funding position, with the deficit falling to £2.7 billion from £3.7 billion at the previous valuation.
The £1 billion reduction provides a more favourable position for the telecommunications group as it continues investing in its broadband and digital infrastructure operations.
Croda International also attracted buyers, climbing 3.5%, adding to the broad gains across London’s largest companies.
The strong opening reflects improving investor sentiment following the US midterm elections, although attention is now turning towards domestic monetary policy.
The Bank of England is scheduled to announce its latest interest rate decision at 12pm GMT, with markets expecting a 25-basis-point increase to 4% as policymakers respond to persistent inflationary pressures.
Investors will examine the Monetary Policy Committee’s voting breakdown and economic guidance for indications of whether additional increases could follow.
The FTSE 100’s move towards 11,000 marks a strong recovery following recent market volatility, with mining shares, corporate earnings and improving global sentiment helping support the latest advance.
Attention will now turn to the Bank of England’s midday announcement and whether London’s blue-chip index can maintain its gains, potentially bringing the FTSE 100 closer to its previous record high.
