Published by Global Banking & Finance Review®
Posted on February 2, 2026
2 min readLast updated: February 2, 2026
FTSE 100 rose as defensive stocks gained, offsetting declines in commodity shares amid geopolitical tensions and economic caution.
By Tharuniyaa Lakshmi
Feb 2 (Reuters) - The UK's FTSE 100 closed at a record high on Monday as investors piled into financials and defensive pharma stocks amid a global selloff in energy and metal shares.
The blue-chip FTSE 100 index closed up 1.1% at 10,341.56 points, rising for the third straight session, while the domestically focused mid-cap index FTSE 250 was up 0.7%, recovering some of the ground lost last week.
The index of precious metal miners fell 1.8%, closing at a two-week low, with Endeavour Mining and Fresnillo among the top losers in the benchmark index, down nearly 2.6% and 0.9% respectively.
The rout began after U.S. President Donald Trump's nomination of Kevin Warsh as the next U.S. Federal Reserve chair on Friday set off a wave of unwinding of leveraged bets.
Caution in markets pushed investors into defensive plays that typically outperform during economic downturns. Healthcare gained 2.6%, lifted by AstraZeneca's 3.2% rise.
Banks also reached their highest level since 2008, up 2%, with Barclays and NatWest group up around 2.7% each.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said the FTSE 100's record close reflected improving global risk sentiment, which outweighed the broader commodities selloff and supported a rebound in Wall Street and European equities.
Signs of geopolitical tensions easing between the U.S. and Iran also sparked a selloff in crude prices, sending energy stocks down 0.4%. Shell and BP fell 0.5% and 0.4%, respectively.
The focus this week will be on the Bank of England's policy meeting on Thursday where it is likely to hold rates at 3.75% and is expected to offer little clarity on when further cuts might come as it waits for firmer inflation trends.
The latest survey showed British businesses are most likely to be planning to raise pay this year by between 3% and 3.49%, slightly more than some BoE policymakers are comfortable with as they seek to return inflation to target.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; editing by Maju Samuel, Mark Heinrich and Jan Harvey)
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, reflecting the performance of the UK stock market.
Defensive stocks are shares in companies that provide consistent dividends and stable earnings regardless of the overall market conditions, often found in sectors like utilities and consumer goods.
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, maintaining monetary stability, and overseeing the financial system.
Commodity prices refer to the market prices for raw materials like oil, gold, and agricultural products, which fluctuate based on supply and demand dynamics.
Economic growth is an increase in the production of goods and services in an economy over a period, often measured by the rise in Gross Domestic Product (GDP).
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