The FTSE 100 climbed 1.2% to close at 8,435.6 points as mining stocks drove gains, fueled by a 7.3% jump in copper prices and a 5.9% surge in nickel. Major miners including Anglo American and Rio Tinto saw share value increases of 8.4% and 7.1%, respectively.
- FTSE 100 closed at 8,435.6, up 1.2% on the day
- Copper prices rose 7.3%, nickel gained 5.9%
- Anglo American shares increased 8.4%, Rio Tinto up 7.1%
- Glencore and BHP Group rose 6.3% and 5.8% respectively
- Mining sector contributed over 60% of the FTSE 100's daily gains
- Elevated metal prices reflect strong demand driven by infrastructure and green energy projects
The UK’s benchmark stock index, the FTSE 100, posted a strong gain of 1.2% on Thursday, closing at 8,435.6, propelled by soaring metal prices that lifted mining sector performance across the index. Investors responded positively to renewed strength in industrial metals amid signs of resilient global demand and tightening supply chains. Copper futures rose 7.3% on the London Metal Exchange, while nickel spiked 5.9% following unexpected production delays in Indonesia and stronger-than-expected Chinese imports. Key mining firms led the rally, with Anglo American shares gaining 8.4% and Rio Tinto surging 7.1%. The combined effect of rising commodity prices and improved outlook for infrastructure spending in Asia and Europe boosted investor confidence in the sector’s near-term earnings potential. Other notable performers included Glencore, up 6.3%, and BHP Group, which advanced 5.8%, reflecting broad-based strength across diversified resource producers. Market analysts noted that the uptick in base metals is likely to support capital expenditure plans and dividend payouts from mining companies through the first half of 2026. With the global economy showing resilience in manufacturing activity and green energy transitions accelerating, demand for critical minerals remains robust. The move also helped narrow the gap between the FTSE 100 and its European peers, which have lagged due to weaker industrial output in Germany and France. The rally underscored the sensitivity of equity markets to raw material price movements, particularly for export-heavy sectors like mining. As commodity prices remain elevated, investors are likely to maintain exposure to high-beta equities linked to natural resources, potentially influencing portfolio allocations ahead of Q1 earnings season.