The FTSE 100 powered to a “record high” in early trading, climbing by 0.9% to reach a peak of 8,956.53 this morning. Experts have said the rally is being driven by a surge in large-cap mining stocks and renewed expectations that the Bank of England could cut interest rates later this year.

According to Trading Economics, the mining companies Anglo American, Rio Tinto, and Glencore all jumped over 3% in the opening hours, with Antofagasta up 2.4%, as investors reacted to US President Donald Trump’s confirmation of a 50% tariff on copper imports, set to take effect August 1. The announcement has sent copper futures soaring and triggered a sharp rebound in mining shares, which are heavily represented in the UK’s blue-chip index.

Market analysts said the FTSE’s momentum is being fuelled by a “cocktail” of factors, including the mining rally, a weaker pound supporting companies with overseas earnings, and softer UK wage growth and higher unemployment, which have increased expectations of a Bank of England rate cut.

The rotation out of US tech-heavy markets and into UK value stocks, particularly in mining, financials, energy, and defence, is also playing a role.

David Belle, founder and trader at Fink Money, said: “The copper price surge is leading the charge here, as the older industrials and mining stocks get a serious boost from Trump’s latest salvo. This is great for UK FTSE investors.”

However, he noted: “We had another net outflow from UK equity funds last month, so although the index is high, it’s still very much unloved.”

Prem Raja, head of trading floor at Currencies 4 You, also said mining stocks were driving the index higher, adding: “With companies like Glencore, Anglo American and Antofagasta heavily weighted in the index, the sharp rise in copper prices following President Trump’s newly announced 50% tariffs on copper imports has had an outsized impact.

“Copper futures jumped over 13%, reaching record highs, as markets priced in supply disruption and increased demand. This commodity boost has lifted investor sentiment and pushed the FTSE upward. The index’s strong exposure to mining means it often benefits when metals rally, and today’s geopolitical twist has delivered just that.”

Tony Redondo, Founder at Cosmos Currency Exchange, said: “The FTSE 100’s record high is being driven by a cocktail of factors”.

He added: “A weaker pound is one key driver, with approximately 75% of FTSE 100 company revenues coming from overseas, while undervaluation, strong sector performances like Defence and Bank of England rate cut expectations.”

However, he warned: “Risks like inflation, trade policies, and economic slowdowns warrant caution. Investors should prioritise diversified, income-focused strategies, monitor macro developments and maintain a long-term outlook to capitalise on the index’s potential.”