FTSE 100 OPENS HIGHER AS CONSUMER CONFIDENCE HITS TWO-YEAR PEAK

The FTSE 100 opened higher following data showing consumer confidence has risen to its highest level in nearly two years. The GfK consumer confidence index, which surveys households on their views of personal finances and economic outlook, climbed three points in August to minus 14. The index stood at its highest since August 2024, shortly after the Labour Party won the general election.

Mining stocks led gains across London's blue-chip index following a rally in gold prices. Antofagasta, Fresnillo and Endeavor each rose between two and three per cent at market open, whilst Anglo American climbed 2.1 per cent as metals prices gained more broadly. The movements reflected wider commodity price strength across the market.

In the United States, Treasury Secretary Scott Bessent announced plans to double a bond buyback programme, increasing short-term borrowing to purchase $4 billion worth of 30-year Treasuries. The move, intended to manage long-term borrowing costs, initially lowered 30-year Treasury yields by ten basis points, though yields subsequently rose by as much as eight basis points. Gold climbed to $4,543 per ounce, its highest price since early June, whilst the dollar fell to its lowest level against major currencies since April.