Britain’s FTSE 100 index surged to a new intraday record on Wednesday, lifted by strong performances across heavyweight banking and mining stocks.
The blue-chip index climbed 0.689% to a fresh high of 9,568.89, surpassing its previous record close of 9,491.25 set last Friday.
The rally was led by financial stocks, with the banks index rising 1.4%.
Investor sentiment improved sharply after the UK’s financial regulator proposed a lower-than-expected compensation package related to the motor finance mis-selling scandal.
The Financial Conduct Authority (FCA) put the total redress bill for lenders at around £11 billion, easing concerns that the eventual payout could be significantly higher.
Lloyds Banking Group gained 2.7% following the announcement, leading the banking sector higher.
The news also lifted Barclays, which added 1.7%, and HSBC, which climbed 1.3% after Morgan Stanley raised its price target on the stock.
Alternative asset manager Intermediate Capital Group (ICG) and engineering firm Spirax were among the few decliners on the day.
The FTSE 100’s strong performance follows a week of record-breaking sessions, with the index setting new highs in four out of five trading days last week.
Analysts say the latest surge reflects renewed confidence in the UK market, supported by easing regulatory pressures on lenders and strength in global commodity prices.
Gold surge boosts mining sector
The precious metals sector provided another major boost to the FTSE 100, as gold prices soared to fresh all-time highs above $4,000 per ounce.
The rally in bullion drove gains across the mining industry, with the precious metal miners index among the top-performing segments on Wednesday.
Endeavour Mining rose 2.1%, while Fresnillo gained 1.5%, both ranking among the FTSE 100’s best performers.
The broader rise in metal prices also lifted Antofagasta by 3.3%, which benefited from a rebound in copper prices.
Market analysts attributed gold’s strength to persistent geopolitical tensions and expectations of slower interest rate hikes, which have bolstered demand for safe-haven assets.
The surge in gold prices also added momentum to the UK’s resource-heavy index, helping it sustain record highs.
Real estate and mid-caps lag behind
While large-cap stocks flourished, the FTSE 250 — which tracks more domestically focused companies — slipped 0.1%, dragged down by weakness in the real estate sector.
The real estate index was the day’s worst performer, led lower by Unite Group, which dropped 9.8% to a five-year low.
Unite, a major student accommodation developer, reported rental growth of 4% for the third quarter, down from 8.2% in the same period last year.
The slowdown disappointed investors and sparked a sell-off in the stock.
Elsewhere, Vertu Motors fell 3.2% after warning that a cyberattack on Jaguar Land Rover, whose dealerships it operates, would hit annual profits.
Broader market outlook
The UK market’s recent rally has been underpinned by optimism across banking, healthcare, and mining sectors.
On Wednesday, healthcare stocks gained 0.9%, with AstraZeneca up 1%. Prime Minister Keir Starmer’s two-day visit to India also drew investor attention, as he pledged to accelerate implementation of the UK-India trade deal agreed in July.
With gold and copper prices rising and regulatory headwinds easing for banks, the FTSE 100 appears poised to consolidate its position above record levels — highlighting renewed investor confidence in Britain’s flagship equity index.
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