FTSE 100 Nears 9,000 Mark Before Closing At New High

The FTSE 100 inched ever closer to the 9,000 milestone, reaching a new intraday high of 8,999.22 before settling at 8,998.06 for a 0.64% gain on the day, and a new high close.

This near-breach of the psychological barrier underscores the index's solid performance throughout 2025, a period marked by surging mining stocks, fluctuating commodity prices, and a complex interplay of earnings.

While bullish sentiment remains in tact, with an 8.93% YTD gain already bettering the performance through 2024, a closer examination reveals a market characterized by diverging fortunes across key sectors.

Whilst those leading the index such as National Grid (+2.04%), IAG (+2.03%), and AZN (+2.03%) came from a range of sectors, looking a little deeper and the banks all fared well. Stalwarts including HSBC (+1.37%), Barclays (+1.18%), Lloyds (+1.08%), and Natwest (+0.85%), all aided the indexes move higher.

The mining sector has also been a key driver of the FTSE 100's ascent in recent days, with Anglo American, Rio Tinto, and Glencore leading the charge. Record copper prices, driven by increasing demand from renewable energy infrastructure and electric vehicle manufacturing, have significantly boosted the profitability of these companies.

However, not all constituents have shared in the rally. THG (-1.78%), Shell (SHEL, -1.33%), and BP (-1.21%) have all pulled back, diverging from broader market momentum.

IAG (International Airlines Group), the parent company of British Airways and Iberia, has emerged as a star performer, supported by strong financial results and a shareholder-friendly €1 billion share buyback program, along with a bullish analyst upgrade. The company's fourth-quarter operating profit before exceptional items more than doubled, exceeding analyst expectations and demonstrating the resilience of the aviation sector despite ongoing economic uncertainties.

Shell and BP have both experienced declines in their share prices, largely influenced by fluctuations in global oil prices. While Shell reported adjusted earnings exceeding analyst expectations, a decrease from the previous year and weaker cash flow from operating activities contributed to investor unease.

Looking ahead, the FTSE 100's next leg will likely be influenced by upcoming earnings reports from major banks, as well as other sectors once the season fully gets under way. Global economic and political developments, such as US tariff announcements and shifts in commodity prices, can also be expected to play a role in shaping how the index reacts to the 9,000 level.