FTSE 100 Nears 10,000 as Geopolitical Tensions Boost Precious Metals Stocks

Market Movement Amid Geopolitical Uncertainty

The FTSE 100 index edged closer to the significant 10,000 level during Monday's trading session, bolstered by gains in defense and precious metals stocks amid escalating geopolitical tensions following a US military operation in Venezuela. As of 11:30 GMT, the index recorded a 0.1% increase to 9,969.45 points. This movement comes after the index briefly breached the 10,000 level for the first time last week.

Sector Performance and Market Drivers

The FTSE 100's strong performance in 2025 has been primarily driven by the robust gains in commodity-related sectors and market expectations of further monetary policy easing by the Bank of England. While the blue-chip index rose, the more domestically oriented mid-cap index remained flat, reflecting varying market dynamics across different segments.

Market Outlook and Economic Context

The current market movement underscores the significant impact of geopolitical developments on financial markets, particularly in commodity-sensitive sectors. As global economic conditions continue to evolve, the interplay between monetary policy expectations and geopolitical events will likely remain a key driver of market performance.