FTSE 100 reaches record peak as Barclays shares fall

The United Kingdom's premier stock index, the FTSE 100, achieved a record-breaking close for the third consecutive day on Friday, buoyed by strong performances in the mining and defensive sectors. The blue-chip index climbed 0.6% to finish at 10,910.55 points, marking a 6.7% gain for February. This performance represents the index's eighth consecutive monthly advance, its longest winning streak since the 2012–2013 period. Investor sentiment was largely supported by expectations of a potential interest rate cut by the Bank of England in March. However, the market faced headwinds from geopolitical uncertainties and trade policies originating from the United States. Fresh tariffs introduced by the U.S. administration and escalating tensions between Washington and Iran drove investors toward safe-haven assets, benefiting precious and industrial metal miners. Despite the broader market gains, the banking sector faced significant pressure. Shares of Barclays PLC declined by 4.2% following reports regarding its exposure to the collapse of Market Financial Solutions (MFS). The mortgage lender was placed into administration amid allegations of financial irregularities. Similarly, Jefferies Financial Group Inc. saw its shares tumble by 10% as the fallout from the MFS collapse impacted several lenders. In the pharmaceutical and consumer goods sectors, AstraZeneca PLC and Unilever PLC saw their share prices rise by 2.9% and 2%, respectively, providing a defensive cushion for the index. Conversely, the aviation sector struggled as International Consolidated Airlines Group S.A. shares dropped 7.5%. The company failed to provide profit guidance for the current year and highlighted concerns regarding rising fuel costs. The mid-cap FTSE 250 index edged up 0.2%, though it was weighed down by a sharp decline in Hays plc. The recruitment firm's shares plummeted 10% after it announced an 84% dividend cut and the departure of its Chief Executive Officer, Dirk Hahn. On the political front, the domestic landscape showed signs of shifting as the Labour Party experienced a notable defeat in a Manchester ward. The Green Party secured a victory in an area previously dominated by Labour for nearly a century, highlighting a growing fragmentation within the traditional two-party system.