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The FTSE 100 closed above 10,000 points for the first time on Monday as defense and mining stocks rose on U.S. stocks.Venezuela uncertain.
David Morrison, senior market analyst at Trade Nation, said: “The overthrow of Venezuela’s leadership has dominated the headlines. But overall, price action in Europe suggests that investors do not believe there will be immediate chaos in the market” and trade is “cautious”, reflecting a “wait-and-see attitude.”
The FTSE 100 index closed up 53.43 points, or 0.5%, at 10,004.57 points, setting a new closing high.
The FTSE 250 index closed up 184.72 points, or 0.8%, at 22,593.93 points; the AIM All-Share Index closed up 6.02 points, or 0.8%, at 774.85 points.
In European stock markets on Monday, the Paris CAC 40 index closed up 0.2%, and the Frankfurt DAX 40 index closed up 1.3%.
Geopolitical factors took center stage after dramatic events in Venezuela over the weekend.
Venezuelan president deposed Nicolás Maduro The man arrived in a New York court on Monday, days after the U.S. captured him in a shocking military operation in Caracas, paving the way for Washington’s plans to take control of the oil-rich country.
Maduro and his wife, Celia Flores, face drug trafficking charges. Two people were forcibly removed from Caracas in a U.S. attack on Saturday.
All eyes are on Venezuela’s response to rapidly unfolding events, with interim leader Delcy Rodriguez offering to work with U.S. President Donald Trump late Sunday trump card.
“We invite the U.S. government to jointly develop an agenda for cooperation,” the former vice president said.
Trump said the United States was “responsible” for the South American country.
Oil prices fluctuated, gold prices rose and defense stocks rose amid ongoing uncertainty.
Lars MoldAJ Bell Investment Director observed: “defense Stocks tend to move higher when tensions between the two countries rise, as investors believe the events could spur governments to spend more on military protection. After the arrest of Venezuela’s leader, it’s only natural to see demand in the industry. “
In London, defense contractors Babcock International and BAE Systems gained 5.8% and 5.5% respectively, while in Frankfurt, Rheinmetall rose 9.4%.
Brent crude opened lower, closing at $61.63 a barrel in London on Monday, up from $60.09 late on Friday.
JP Morgan analyst Natasha Kaneva said regime change in Venezuela will become one of the biggest upside risks to the global oil supply outlook from 2026 to 2027 and beyond.
Ms Caneva added: “This shift could give the United States greater influence over oil markets, potentially keeping oil prices at historically low levels, enhancing energy security and reshaping the balance of power in international energy markets.”
While Citi analysts believe events in Venezuela and developments in Iran and Ukraine are currently supportive for oil, they could be “net bearish” in the longer term.
“Our base view is that until the U.S. government reaches an agreement with Venezuela’s current (or future) leadership, we may continue to lose Venezuelan oil from global markets, which is a net bullish factor,” Citi said.
The broker said any deal could take “months or longer” and would likely be “preceded by an upgrade ahead of a potential downgrade”.
Combined with events in Ukraine and public protests in Iran, Citi assesses that oil supply risks remain high enough to support Brent crude prices rising to $60 per barrel in the coming weeks.
In London, BP fell 0.7% and Shell fell 0.8%. But on Wall Street, Chevron and Exxon Mobil rose 5.2% and 2.3%, respectively, as the United States gained greater access to the world’s largest crude reserves.
Gold prices rose to $4,441.79 an ounce at Monday’s close, compared with $4,320.16 an ounce at Friday’s close, while silver and copper prices also rose sharply.
Gold miners Endeavor Mining and Fresnillo gained 6.1% and 4.3% respectively, while copper major Antofagasta gained 6.2%.
At the close of trading in London on Monday, the pound was quoted at $1.3516, up from $1.3491 at Friday’s close.
The euro fell to $1.1713 against the dollar from $1.1745. The dollar-yen exchange rate fell from 156.64 yen to 156.41 yen.
New York stocks were higher at the close in London on Monday.
The Dow Jones Industrial Average rose 1.4%, the S&P 500 gained 0.8% and the Nasdaq Composite gained 1.0%.
The yield on the 10-year U.S. Treasury note was 4.17% on Monday, down from 4.19% on Friday. The U.S. 30-year Treasury bond yield is 4.86%, narrowing from 4.87%.
Back in London, housebuilders responded to data showing the number of mortgage approvals for home purchases fell by 500 to 64,500 in November, pointing to weaker demand for housing going forward.
Anthony Codling, equity analyst at RBC Capital Markets, said: “These figures point to the negative impact of the November budget on the UK housing market.
“However, now that the budget is finalized and dusted, we expect a strong spring 2026 sales season as mortgage rates continue to fall and those who had put their plans on hold are back in action.”
Homebuilders Berkeley Group and Barratt Redrow gained 1.2% and 1.1% respectively.
Elsewhere, there have been changes at the top of two of Britain’s most popular football clubs, with Celtic and Manchester United dumping their respective managers after disappointing tenures.
Celtic shares rose 2.5% after initially falling as the club sacked Wilfried Nancy after just eight games after 33 days in charge, with Saturday’s 3-1 defeat to Glasgow rivals Rangers in the ‘old’ derby the final straw.
Meanwhile, Ruben Amorim’s 14-month tenure at Manchester United has come to an end, with him sacked after a string of disappointing results.
Shares of the New York Red Devils rose 1%.
The biggest gainers on the FTSE 100 were Antofagasta, up 203p to 3,459p; Endeavor Mining, up 222p to 3,872p; Babcock International, up 74p to 1,347p; and BAE Systems, up 97p to 1,851p. pence; and Ashtead, up 226p, up 5,326p.
The biggest decliners on the FTSE 100 were Admiral Group, down 94p to 3,054p; British American Tobacco, down 122p to 4,067p; DCC, down 120p to 4,424p; Unilever, down 123.5p to 4,699 pence; and Imperial Brands fell 78p to 3,047p.
Tuesday’s local business calendar features a trading announcement from clothing and homewares retailer Next.
Tuesday’s global economic calendar features a slew of composite Purchasing Managers’ Index (PMI) data, consumer price index (CPI) data from Germany and France, and UK grocery market stock data.
Contributed by Alliance News.