The FTSE 100 closed just shy of its all-time high on Tuesday, finishing the session at 8,254.18, only 14 points below the record closing high of 8,272.46 set on 22 May. The index rose 38.48 points, or 0.47 per cent, buoyed by gains in mining stocks and a softer pound, which tends to benefit multinationals that earn in dollars. Despite intraday gains, the index failed to break through the closing peak amid cautious investor sentiment and ongoing global market volatility. Anglo American was among the biggest risers, gaining 3.8 per cent, as traders speculated on the company’s restructuring plans following the collapse of BHP’s takeover attempt. Other top performers included Antofagasta, Glencore, and Rio Tinto, which all benefited from stronger metal prices and optimism around Chinese stimulus measures. The mining sector overall added significant upward pressure to the index throughout the day, with copper and iron ore futures both seeing positive movements during London trading hours. The pound fell 0.3 per cent against the dollar to $1.268, giving a tailwind to FTSE constituents that generate substantial overseas revenue. At the same time, yields on UK gilts slipped as investors reacted to a softer-than-expected labour market report showing a slight uptick in unemployment and a slowdown in wage growth. The weaker data has led markets to adjust expectations for interest rate cuts by the Bank of England later this year, though no immediate move is anticipated at the next meeting. Elsewhere, real estate and utility stocks saw modest declines, with British Land and United Utilities among the laggards. Financial stocks remained flat as investors held back ahead of US inflation data due tomorrow, which could influence global rate outlooks. Meanwhile, the tech-heavy Nasdaq and the S&P 500 also hovered near record levels as optimism persisted over AI-driven gains and the continued rally in US mega-cap stocks, particularly chipmakers like Nvidia. The broader European picture was mixed. The pan-European STOXX 600 index was virtually unchanged, while Germany’s DAX posted small gains and France’s CAC 40 dipped slightly. European investors kept an eye on political developments in France after President Macron’s decision to call snap elections, which has introduced a layer of uncertainty into eurozone markets. Bond yields in France ticked higher on the announcement, reflecting market unease over potential changes in fiscal policy following the vote. Despite strong gains, today’s finish below the previous FTSE 100 record suggests that market sentiment remains cautious ahead of key macroeconomic events. With UK inflation, US CPI, and central bank meetings all scheduled for later in the month, traders are staying alert. The FTSE’s proximity to its peak reflects resilient corporate earnings and stable commodity prices, but lingering concerns about interest rates, political risk, and global growth continue to cap upside momentum...