The FTSE 100 index surged on Monday, moving within 50 points of its all-time high, as investor sentiment brightened amid hopes that the prolonged US government shutdown could soon end. The benchmark rose 0.7% or 65 points to 9,747.83.
Shares of Diageo jumped nearly 7% to £1,851.9. The rally came after the Guinness and Johnnie Walker maker announced the appointment of Sir Dave Lewis, former Tesco CEO, as its new chief executive.
Lewis, who also spent almost 30 years at Unilever, will formally assume the role in January 2026. He will receive a £1.5 million annual salary plus performance-linked bonuses.
The market responded positively to the leadership change after Diageo’s shares had slumped over 40% in the past two years amid slowing growth and strategic uncertainty.
The rebound extended beyond Diageo. Fresnillo climbed 4.38% to £2,288, supported by a rebound in gold and silver prices, while Endeavour Mining rose 3.59% to £3,116.
International Consolidated Airlines Group (IAG) advanced 3.8% to £380.1, recovering from last week’s post-earnings decline as easing fuel prices and stronger travel demand buoyed sentiment.
Energy and commodities firms also traded higher, with Antofagasta, Anglo American, and Glencore each rising more than 2%, tracking firmer copper prices. Oil majors Shell and BP both gained around 1%, helping to strengthen the index’s rally.
Technology-linked investment trusts such as Polar Capital Technology Trust (PCT) and Scottish Mortgage Investment Trust (SMT) also posted gains of 3.5% and 2.8%, respectively.
On the downside, Severn Trent fell 1.56% to £2,775, while National Grid dipped 1.88% to 1,148.50 amid cautious investor sentiment toward utilities.
Unilever and Imperial Brands also slipped modestly by 0.7-0.8%, reflecting rotation away from defensive sectors toward cyclicals.
Professional services group JTC surged after confirming it had accepted a £2.3 billion all-cash takeover offer from Permira, valuing its shares at £1,340 each, a 49% premium to its August price.
The board’s approval followed multiple offers from Permira and Warburg Pincus, underscoring strong interest in the UK’s financial services sector.
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Global markets began the week on a firmer footing. US futures pointed to a 0.7% rise in the S&P 500, while Asian indices also climbed, with Japan’s Nikkei 225 up 1.3% and Hong Kong’s Hang Seng gaining 1.5%.
Analysts noted that investor confidence is improving as negotiations progress to end the record-long US government shutdown, easing fears of economic disruption.
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