London stocks ended higher on Wednesday, boosted by strength in the mining sector, as investors mulled encouraging Chinese trade data, although educational publisher Pearson and housebuilder Vistry tumbled on disappointing updates.
The FTSE 100 closed up 0.5% at 10,184.35, hitting a fresh record high.
Laith Khalaf, head of investment analysis at AJ Bell, said: "Markets are ostensibly calm but there are tensions bubbling under the surface.
"The political situation in Iran, a besieged Federal Reserve and a US president who is now weighing in on the US credit card sector are all cause for concern in the market, especially against a backdrop of sky high valuations in the US.
"Nowhere is this unease more apparent than in the surging price of precious metals. Silver in particular has been on a flabbergasting run of late. It's quite an achievement to put gold in the shade, seeing as the yellow metal continues to post record highs.
"The precious metal rally was set in train by central banks buying up gold in response to a more geopolitically uncertain world, and it's now broadened out as other investors have piled in, many of them concerned about debasement of the dollar. The rally now seems to have taken on a life of its own, probably partly because many precious metal traders buy and sell based on price patterns, and both gold and silver have broken through previous resistance lines and are now heading off the charts.
"The FTSE 100 has also hit another record high. Rising metal prices helped lift mining companies on the UK's benchmark index, which seems to be continuing 2026 in much the same vein that it finished 2025."
Investors were digesting the latest data out of China, which showed that its trade surplus with the rest of the world reached a record $1.2trn in 2025 as exports to the European Union and Southeast Asia surged in response to higher tariffs in the US.
In dollar terms, the world's second-largest economy reported a trade balance of $1.189trn last year, up from 2024's record of $993bn.
In equity markets, miners Glencore, Rio and Anglo American all rallied. Gold miners Endeavour and Hochschild also rose, while precious metals miner Fresnillo gave back earlier strong gains to end little changed.
AstraZeneca was among the top performers after announcing on Tuesday that it was buying Boston-based biomedical AI company Modella AI.
Utility firm SSE ticked higher after saying it secured a 20-year contract for 1.4 gigawatts of offshore wind power.
Insurer Prudential advanced as it named City veteran Douglas Flint as its next chair. Flint, who spent more than two decades at HSBC, including seven as group chair, will replace current incumbent Shriti Vadera, who is retiring.
Energy giant BP reversed earlier losses to end up after saying it expects to take an impairment charge of $4bn - $5bn in the fourth quarter, mainly related to its energy transition businesses.
On the downside, housebuilder Vistry slid as it reiterated full-year guidance despite Budget uncertainty weighing on private house sales in the second half. Updating on trading in the year to December end, Vistry confirmed adjusted pre-tax profits were on track to come in around £270m, up from last year's £263.5m and in line with expectations.
Revenues, however, were broadly unchanged at £4.2bn, after the total average selling price rose 3% to £282,000 but completions fell 9% to 15,700. Vistry said the slowdown in sales reflected "uncertainty driven by the Budget, causing a more subdued market in the third quarter and the first half of the fourth quarter".
FTSE 100 peers Berkeley, Barratt and Persimmon also lost ground.
Pearson tumbled despite the educational publisher reporting an acceleration in growth at the end of last year, as investors were disappointed by the absence of forward guidance and the loss of a key US contract.
Recruiter Hays fell as it reported a drop in net fees, citing challenging conditions in the permanent segment and a decline in average hours worked in Germany.
Asset manager Ashmore retreated ahead of a trading update on Thursday, while Me Group slid after shareholder Montefiore Investment sold its entire stake in the vending machine and self-service laundry company in placing.
Bytes Technology was knocked lower by a downgrade to 'hold' from 'buy' at Jefferies.