The FTSE 100 is approaching a new record high, having achieved its strongest performance in three months. London's blue-chip index recorded its fifth consecutive day of gains, increasing by 0.18 per cent on Tuesday to reach 10,875 by 11:45am.
Analysts attribute this upward trend to the index's limited exposure to technology and AI stocks. These sectors have experienced volatility ahead of a trading update from Nvidia scheduled for Wednesday.
Mining companies have also bolstered the index, with investors returning to precious metals amidst a weaker US currency and concerns regarding debt and inflation. Glencore saw a 7.4 per cent increase over the last five days, trading at 592.9p per share, while Fresnillo climbed ten per cent in the last week and Rio Tinto rose 8.8 per cent. Other sectors, including banks and pharmaceuticals, have also contributed to the index's performance.
However, the FTSE 100's trajectory could be influenced by the subdued reaction in oil markets to US threats against Iran, with Brent crude declining 2.3 per cent in early trading to $89.7. The index's performance also depends on Nvidia's results, which are expected to offer insights into AI demand.