The FTSE 100 bounced back from a wobble caused by bond market gyrations yesterday as miners surged amid rising precious metals prices.
Although London’s leading index didn’t recover all losses sustained yesterday, investors will be reassured that the global bond market sell-off didn’t spill into a second session of equity declines. That said, bond yields remained elevated and are likely to impact the equity story again before long.
The FTSE 100 was trading 0.5% higher at the time of writing, with mining stocks leading the charge. US equities were set for a higher open as tech stocks gained in the premarket.
Fresnillo, up 5%, was the top riser as gold scaled fresh highs. Fresnillo is the FTSE 100’s best-performing stock of 2025, posting gains in excess of 220% and playing a significant part in the index hitting record highs on a number of occasions this year.
Gold was last trading comfortably above $3,500 at $3,547 – a fresh record high.
“Gold is undergoing an impressive rally, supported by a combination of macroeconomic factors and capital flows,” said Linh Tran, Market Analyst at XS.com.
“After setting new record highs, the precious metal has continued to attract investors thanks to expectations that the U.S. Federal Reserve (Fed) will soon shift toward monetary easing, declining real yields, and rising demand for safe-haven assets amid global economic uncertainties.”
Diversified miners also joined the rally and helped lift the FTSE 100 index. Antofagasta and Anglo American both added more than 3%.
Ashtead rose 2.7% as the plant hire firm pleased investors with an encouraging set of Q1 results that further dispelled the gloom around the stock at the beginning of the year.
“Ashtead’s share price resurgence, up over 50% in just a few months, marks one of the most compelling turnarounds in the FTSE 100 this year. What began as a bleak 2025, marred by slowing construction starts and fears of a U.S. hard landing, has flipped dramatically as infrastructure tailwinds, resilient U.S. demand, and record free cash flow have reignited investor confidence,” said Mark Crouch, market analyst for eToro.
“Q1 results only add fuel to the rally, $2.8bn of revenue, $552m in profit, and raised free cash flow guidance underscore both operational strength and balance sheet discipline.”
There was also strength in defence stocks after China showed off its military hardware in a major parade that featured AI-powered robot attack wolves and nuclear bombs.
“It was telling that defence stocks moved higher, including gains from BAE Systems and Rheinmetall as investors potentially took the view that a more serious threat from the East could further increase demand for Western defence capabilities,” explained Russ Mould, investment director at AJ Bell.
Babcock added 3% as BAE Systems rose around 0.5%.