The FTSE 100 jumped on Monday as investors cheered a breakthrough in Washington that could end the government shutdown, which is starting to have a real economic impact on the US.

London’s leading index was trading 0.9% higher at the time of writing.

“Glimmers of hope that an end might be in sight to the longest running US government shutdown in history put markets in a positive mood,” said AJ Bell investment director Russ Mould.

“A vote in the Senate is an important first step but any agreement still needs to clear a vote in the House of Representatives along with several other hurdles. A key impact on the markets of the impasse, beyond the hit to the wider economy, has been the lack of data as key releases on areas like the jobs market have been delayed.”

The news will be welcomed by stock traders who were hit by several sharp selloffs last week amid concerns about AI valuations.

S&P 500 futures were trading 0.8% higher at the time of writing.

Today’s FTSE 100 rally takes the index back within touching distance of all-time highs, as its defensive attributes helped it avoid the worst of the volatility last week.

Diageo was the FTSE 100’s top riser, storming 7% higher, on the news that former Tesco CEO Sir Dave Lewis would take up the role of CEO at the drinks giant.

“Diageo has named Sir Dave Lewis as its next CEO, effective January 2026, opting for an external hire over interim chief Nik Jhangiani,” explained Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“Lewis brings deep experience in consumer brands from his time leading Tesco and decades at Unilever, though he lacks direct exposure to the spirits industry. Investors may welcome his strong marketing pedigree, but any major strategic reset will take time, leaving near-term focus on navigating tough trading conditions.”

Gold’s rally saw Fresnillo 5% higher on Monday as the precious metals miner attempted to re-establish its meteoric rally.

“Gold surged on Monday, reaching its highest level in three weeks as renewed expectations of a Federal Reserve rate cut and persistent geopolitical tensions lifted safe-haven demand,” said Van Ha Trinh, Financial Markets Strategist at Exness.

Polar Capital Technology Trust shares were in demand as investors positioned for a rebound in US tech stocks after last week’s declines. The trust was 4% higher.

UK intellectual property investment group Tekcapital has announced a strategic alliance with artificial intelligence innovator Nexscient, Inc.

The partnership aims to identify and acquire transformative university technologies that align with Nexscient’s AI and advanced computing focus.

The collaboration leverages Tekcapital’s extensive network of universities and research institutions to create opportunities for both companies. Nexscient will evaluate and pursue acquisitions or licenses of these innovations through strategic transactions designed to generate long-term shareholder value.

Under the agreement, Tekcapital will provide Nexscient with continuous access to a carefully curated pipeline of university-originated technologies. This includes identifying suitable acquisition candidates and leading early-stage negotiations with research institutions.

Tekcapital will also structure initial transactions for technologies that Nexscient may acquire using company stock as consideration. This approach allows for flexible deal-making while preserving cash resources for both parties.

Tekcapital built its five portfolio companies almost exclusively from technologies developed by research organizations, and its experience in the area continues to yield commercial opportunities for the business.

“This alliance with Tekcapital represents a powerful extension of Nexscient’s vision to identify, fund, and commercialize high-impact AI technologies,” said Fred E. Tannous, Chief Executive Officer of Nexscient, Inc.

“Tekcapital’s unparalleled access to global university innovation, combined with our ability to integrate and scale those technologies into commercial AI solutions, creates a dynamic pathway from academic discovery to market transformation.  We believe that this collaboration accelerates our mission to deliver the next dimension of AI.”

Buccaneer Energy shares sank on Monday after announcing the completion of drilling operations at its Allar #1 well in Texas.

The well, located in the Fouke area of the Pine Mills Field, reached a total depth of 5,767 feet. Buccaneer holds a 32.5% working interest in the project.

At a depth of 5,616 feet, the drilling team encountered a shaly oil sand sequence in the 2nd sub-Clarksville unit. Unfortunately, testing revealed no commercial hydrocarbon accumulation in this formation.

Buccaneer Energy shares were down 27% at the time of writing.

“The results of this well are disappointing; however, the geologic targets and most importantly the bounding fault, came in on prognosis,” said Paul Welch, Buccaneer Energy’s Chief Executive Officer.

“The sand section thinning as it approached the fault was a phenomenon not observed in previous offset wells in the Fouke area and provides valuable subsurface data that will be incorporated into the geological model for the field and future drilling plans.

“The bounding fault follows a northwest trajectory, which permits the Fouke #4 well to be located at a similar distance from the fault as Fouke #1; potentially within a thicker sand section of the sub-Clarksville. AlthoughAllar #1 was considered a low-risk development well, subsurface outcomes can vary even within proven structures, and the data gathered here will directly inform and de-risk the upcoming Fouke #4 location.”