(Sharecast News) - London stocks shook off a weak start to close at a record high on Monday as the selloff in the metals market eased.
The FTSE 100 closed up 1.2% at 10,341.56.
The latest selloff in the precious metals market was sparked last week by US President Donald Trump's nomination of former Fed governor Kevin Warsh. The selloff in gold and silver prices gathered pace on Monday morning but by the close of markets, prices had come off their lows.
Chris Beauchamp, chief market analyst at IG, said: "AstraZeneca has played its part in a steady move higher throughout the day as the pharma giant completes its move to the NYSE from the Nasdaq, a move which many still think is a precursor to abandoning its London listing altogether. Losses in miners and oil stocks have been contained, not least because of the dip buying going on in gold and silver after the weekend plummet.
"Gold and silver might have entered their own bear market over the last two trading sessions, but we have already seen dip buying at the lows. The fundamentals of the trade have not changed, but now investors need to ask themselves whether they really believed in those fundamentals, or had just been beguiled by one of the most impressive momentum-driven moves of recent years."
On the macro front, a survey out earlier showed manufacturing growth in the UK hit a 17-month high in January.
The S&P Global manufacturing purchasing managers' index rose to 51.8 from 50.6 in December, coming in above the flash estimate of 51.6 and signalling growth for three months in a row.
A reading above 50.0 indicates growth, while a reading below signals contraction.
The survey also showed that business optimism reached its highest level since before the 2024 Autumn budget.
Rob Dobson, director at S&P Global Market Intelligence, said: "UK manufacturing made a solid start to 2026, showing encouraging resilience in the face of rising geopolitical tensions. Rates of output and order book growth accelerated, while new export business rose for the first time in four years, with Europe, China and the US the main recipients.
"There was also a positive bounceback in business confidence, which rose to its highest level since before the 2024 Autumn budget, as manufacturers focussed on opportunities lying ahead despite persistent concerns about the geopolitical environment, Government policy and tariff tensions.
"There was also encouraging news on the jobs front. Although the strongest rise in new business for almost four years was insufficient to fully quell reductions to staff headcounts, the rate of cutting slowed to its weakest since job losses started 15 months ago. Cost pressures are creeping higher though, as the pass through of the increased Minimum Wage and employer NI contributions continue to work through the supply chain alongside the rising costs for commodities such as metals."
Separately, industry research showed that house price growth slowed in December, as the housing market ended an otherwise resilient year on a more subdued note.
According to the latest Nationwide house price index, growth was 0.6%, against November's 1.8% jump. It was the slowest pace of growth since April 2024. The average house price is now 271,068.
In equity markets, AstraZeneca was joined in the black by Haleon, Compass, Unilever and Reckitt.
Russ Mould, investment director at AJ Bell, pointed out that in an environment where gold and silver assets haven't proven to be as reliable havens as some people hoped, "the natural place to hide is defensives".
"For some investors, a slice of toast and Marmite, and a headache tablet is just the job when markets are in a spin," he said.
"For others, buying the companies that sell these goods is also a much-needed tonic. That's why shares in consumer goods groups Unilever and Reckitt, healthcare products specialist Haleon, and various Coca-Cola bottling companies were in vogue on the UK market. In theory, their sales could be ticking over regardless of what's happening on financial markets."
Beazley rallied as Zurich Insurance disclosed a stake of just under 1.5% in the London-listed insurer, after a recent takeover approach was rejected. Zurich said in a filing that as of 30 January, it holds just over 8.86m shares in Beazley.
Danni Hewson, head of financial analysis at AJ Bell, said: "Zurich has been clear that its sights are set on the smaller company and has a couple more weeks to come up with an offer that might win over Beazley's board and major shareholders.
"Whilst the clock ticks Zurich has taken a toehold in its prize and speculation will be mounting that it could be on its way to notch up a far bigger stake than the 1.47% it has disclosed.
"If it can amass a sizeable position, it will achieve two goals: persuading the board it needs to look again and reducing the overall cost of acquiring control, since whatever offer it makes would undoubtedly be at a significant premium to today's price."
On the downside, precious metals miner Fresnillo and gold miners Endeavour, Pan African and Hochschild ended down but well off earlier lows.
Oil giants BP and Shell also ended down but off lows despite lower oil prices amid signs of a de-escalation in Iran-US tensions.
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