The FTSE 100 closed at 9,787 points on Monday, setting a new record as global markets rallied following signs of progress in Washington towards ending the United States government shutdown. The blue-chip index gained 1.08 per cent, its highest closing level in history, buoyed by strong performances across banking, mining and consumer goods sectors. Investors responded to news that the US Senate had advanced a motion to fund the federal government after more than a month of disruption. Market optimism built through the session after the Senate cleared a procedural vote by 60 to 40, signalling that an end to the forty-day stalemate could soon be reached. Analysts said the development reassured traders that US economic data flow and fiscal operations would soon normalise, restoring confidence in global markets that had been unsettled by the deadlock. European and Asian markets rose in parallel, with the Stoxx 600 gaining 0.8 per cent and Japan’s Nikkei closing higher for a third consecutive day. In London, gains were broad-based. Diageo led the index, climbing more than 7 per cent after the drinks group confirmed its new chief executive. The appointment was received positively by investors following several quarters of sluggish growth. Other major risers included Anglo American and Rio Tinto, supported by higher metal prices as traders priced in renewed industrial demand if the US government resumes normal operations. Energy stocks also strengthened on firmer oil prices. The rally lifted the FTSE 100’s year-to-date performance close to a 20 per cent gain, outpacing most European peers. Traders attributed the momentum to continued foreign inflows into undervalued UK equities, which remain cheaper on price-to-earnings ratios than comparable indices in the eurozone and the United States. The pound held steady against the dollar at $1.27, while gilt yields were little changed, suggesting that investors viewed the equity rise as driven by global rather than domestic factors. Financial stocks contributed strongly to Monday’s advance. Lloyds Banking Group and Barclays rose between 1 and 2 per cent as the prospect of calmer global markets eased concerns over liquidity and credit tightening. Insurers Aviva and Legal & General also advanced, supported by expectations that a resolution in Washington could bolster global bond markets and corporate issuance heading into the final quarter of the year. The mood was similarly positive among mid-cap firms listed on the FTSE 250, which climbed 0.9 per cent to its highest level since July. Retailers and travel operators benefited from signs of easing fuel costs and improving consumer sentiment. Budget airline easyJet and retailer Marks & Spencer were among the day’s strongest performers. Domestic-focused shares have lagged the main index through much of the year but gained ground as confidence grew that UK inflation is continuing to moderate. In the United States, equity futures pointed higher ahead of Wall Street’s opening bell, extending last week’s gains. Investors worldwide are betting that once the government reopens, backlogged data releases from the Commerce Department and Federal Reserve will clarify the economic outlook and allow policymakers to revisit the timing of potential rate cuts. Yields on ten-year US Treasuries fell slightly to 4.29 per cent as investors adjusted for reduced fiscal risk. Monday’s performance added to a run of strong sessions for London’s main index, which has now posted gains in nine of the last twelve trading days. Commodity-linked firms remain the backbone of the FTSE’s current strength, benefiting from China’s gradual industrial recovery and signs of stabilisation in global shipping. Analysts said the continuing uptrend is aided by investor rotation out of bonds and into equities ahead of anticipated interest-rate adjustments in major economies. While UK inflation remains above target, the Bank of England’s next policy meeting in December is now viewed as pivotal. Futures markets indicate an increasing probability of a rate hold, helping steady valuations for interest-sensitive sectors such as real estate and utilities. Companies including British Land and National Grid edged higher in the day’s trade, contributing to the index’s overall strength. Globally, the day’s rally extended to currencies and commodities. Brent crude rose 1.4 per cent to $86.10 per barrel on expectations of firmer demand once federal US transport and energy agencies resume operations. Gold also gained slightly to $2,390 per ounce, reversing last week’s minor losses. Copper prices rose by nearly 2 per cent, lifting mining shares across Europe. Traders in London described the day’s mood as one of cautious relief rather than exuberance, noting that the true impact will depend on whether the US Congress can convert procedural progress into a final agreement. In the meantime, the FTSE’s record high provides a strong signal of renewed investor appetite for UK assets...