FX.co ★ FTSE 100 Trades at Record Highs

On Wednesday, the FTSE 100 experienced an uptick, maintaining its impressive position above the 9,500 mark. This rise was primarily fueled by the growth of precious metals mining companies, prompted by gold prices breaking through the noteworthy $4,000 per ounce level. Notably, Fresnillo and Endeavour Mining saw increases of 2.2% and 2.4%, respectively, as investors continued to opt for the security of safe-haven assets. This trend is driven by ongoing global trade tensions, uncertainties regarding the Federal Reserve's policy decisions, and the persistent U.S. government shutdown. In the base metals sector, Antofagasta experienced a 2.7% rise, Anglo American 1.7%, and Rio Tinto 0.4%. Anglo American reinforced its endorsement of Teck Resources' more gradual ramp-up strategy for its Quebrada Blanca copper initiative in Chile, highlighting the strategic importance of their merger. In addition, banking stocks made gains, with Lloyds up by 2.4%, Standard Chartered by 1.4%, Barclays by 1.2%, and NatWest by 1%. This positive movement followed the Financial Conduct Authority's (FCA) announcement indicating that the cost of the UK's car loan compensation scheme would be £11 billion, a figure lower than previously projected. This has led to speculation that banks, including Lloyds, may release excess financial reserves.