FX.co ★ FTSE 100 Rises to New Record

The FTSE 100 climbed 0.8% to a record high near 10,556 on Tuesday, marking a third consecutive session of gains as weak labour market data strengthened expectations of further interest rate cuts from the Bank of England. UK unemployment unexpectedly rose to 5.2% in the three months to December, the highest level since 2021, while wage growth slowed and payroll numbers declined. The data signalled softer hiring conditions and reinforced hopes for looser monetary policy.

Expectations of rate cuts supported interest rate–sensitive sectors, with housebuilders among the strongest performers as anticipated borrowing costs eased. Barratt Redrow advanced more than 3%, while Persimmon and Taylor Wimpey each added around 2%.

In contrast, weakness in mining shares weighed on the index amid a pullback in metals prices. Gold miners were particularly hard hit, with Endeavour down 4% and Fresnillo losing 2.2% as precious metals retreated. Copper producer Antofagasta fell about 3.9% following a decline in copper prices.