In a sign that the equity bulls are firmly in control, the FTSE 100 recovered early losses on Friday as UK markets shook off losses in the mining sector to hit a fresh record high.
After falling sharply in the very early minutes of trade, the index recovered to trade above 10,250, marginally higher on the session – a record high nonetheless.
“Investors have been kept on their toes year-to-date with non-stop geopolitical issues, and mixed messages from the business world. A quieter day on the corporate reporting calendar gave investors a chance to catch their breath and take stock of events,” says Dan Coatsworth, head of markets at AJ Bell.
“European indices quietened down, with small losses in the UK, France, Spain, and Germany. Asia was mixed, while futures prices point to a positive but unspectacular day on Wall Street.
“Gold miners and defence stocks have been winning trades year-to-date, repeating a trend that ruled in 2025. Investors have felt reassured parking their money in these areas given a backdrop of uncertainty and geopolitical tensions. At some point, they will need to think more about what could unfold in 2026 and where best to put their money.”
The complexion of Friday’s gains was very different to the rally earlier in the week when commodity companies helped lift the index.
After a bout of contained profit-taking, defence-related stocks were in vogue again, with BAE Systems, Babcock, and Rolls-Royce among the top risers, gaining between 1% and 2%.
Schroders, up 2.5%, was top of the pile again as investors continued to buy into the asset manager after the group revealed strong fee income yesterday.
Pearson shares fell again after the company released a disappointing trading update earlier this week. The stock is down 10% in the early stages of 2026.
Miners were the biggest drag on the index with Antofagasta, Rio Tinto and Glencore losing between 2%-3%. All three are comfortably higher on the year, and Glencore is one of the best FTSE 100 performers since the turn of the year, after merger talks and higher metals prices propelled the stock higher.
Next shares were 2% lower after redeeming B shares for capital returns to shareholders. There was probably an element of profit-taking in the dip.