The FTSE 100 soared on Tuesday in a broad rally driven by London’s heavyweight stocks including Shell, AstraZeneca, and HSBC.

Another record high for the S&P 500 overnight proved to be ample reason for equity bulls to buy into London’s blue chips on Tuesday, sending the index 0.9% higher to 8,388 and within touching distance of all-time record highs.

The FTSE 100 has flirted with the 8,400 level numerous times this year but has failed to break through the psychological level meaningfully, leaving all-time record highs at 8,445 just out of reach.

That said, the festive season may provide the conditions needed for London’s flagship index to do what US indices have done on many occasions this year and break to a fresh record.

A lack of macro influences on markets on Tuesday and the broad nature of the rally suggests investors are gearing up for a Santa’s rally by building positions in beaten-down large-cap shares before the end of the year. The gains on Tuesday likely reflect the actions of bargain hunters instead of out-and-out exuberance.

“The year is, effectively, done & dusted. Certainly, nobody is going to be making their year as Christmas approaches, but plenty would find it very easy to break it,” said Michael Brown Senior Research Strategist at Pepperstone.

“Consequently, liquidity tends to dry up and volumes thin out, as markets become a mix of position squaring as books are closed up, and portfolio window dressing as the dreaded task of writing year-end investment letters looms.”

BP and Shell were firmly bid as investors picked up the oil majors and locked in benchmark-beating yields after a prolonged period of poor performance.

AstraZeneca touched its highest level since the beginning of November as the pharma giant continued to rebound above 10,000p, having fallen from highs above 13,000p.

Easyjet was among the top risers after UBS and Barclays hiked their price targets for the airliner. UBS had the most ambitious target of 845p compared to Easyjet’s current price of 566p.

Vistry was down 0.3%, and it looks increasingly likely that the housebuilder will be ejected from the FTSE 100.

Cadence Minerals shares soared on Tuesday after the company announced positive results from an updated Pre-Feasibility Study for its Amapá Iron Ore Project in northern Brazil, where it holds a 34.6% equity stake.

The study, incorporating a Direct Reduction grade flow sheet, reveals a substantial increase in the project’s post-tax Net Present Value (NPV10%) to US$1.97 billion, with an internal rate of return of 56%.

Cadence Minerals shares jumped over 20% in early trade on Tuesday as investors cheered the improved outlook for the company’s flagship asset.

The project is estimated to generate average annual free cash flow estimated at US$342 million from start-up through to closure.

Over its 15-year mine life, the Amapá Project is expected to deliver US$9 billion in gross revenues, US$4.9 billion in net operating profit, and US$4.6 billion in free cash flow.

The processing plant has been redesigned to produce high-grade iron ore concentrate at 67.5% Fe, with an average production rate of 5.5 million metric tonnes per annum.

The project demonstrates strong cost efficiency, with Free on Board C1 Cash Costs of US$33.7 per dry metric tonne at the port of Santana, and Cost and Freight C1 Cash Costs of US$61.9 per dry metric tonne in China.

The pre-production capital requirement is set at US$377 million, with an attractive payback period of just three years, shortened by the increased free cash flows.

“This significant update to the Amapá Prefeasibility Study, which includes the DR-grade concentrate flow sheet, reinforces our firm belief that the project can add substantial value to Cadence. The increased net present value of $1.97 billion and improved post-tax internal rate of return reflect significant advancements in the project’s robust economics,” said Cadence CEO Kiran Morzaria.

“The Amapá Project represents a well-developed and largely de-risked opportunity, featuring established mineral reserves, advanced environmental permitting, and complete control of integrated rail and port infrastructure. This ownership and control of the infrastructure contribute to the project’s low-cost base and will enable the pursuit of regional expansion opportunities, with substantial resources located within 30 kilometres of the existing rail line. In addition to the DR-grade flow sheet, the project will use 100% renewable energy sources. We anticipate this will help us achieve one of the lowest carbon footprints in the region while still delivering a robust and highly profitable project.”