London’s FTSE 100 index surged to a new peak on Thursday, closing at 10,686.18 points after a 1.2% jump. The rally marked the second straight day of record highs, driven by fresh data showing inflation cooling to its lowest level in nearly a year.

Investors piled into UK stocks on hopes the Bank of England will slash interest rates as early as March. A weaker pound added fuel, making London-listed companies more appealing to overseas buyers. Miners dominated the leaderboard. Antofagasta and Anglo American soared on climbing copper prices. Glencore rocketed 4.4% following news of a shareholder payout.

Commodity stocks shrugged off broader market jitters over artificial intelligence. Energy and metals sectors delivered standout returns as UK valuations look cheap next to U.S. peers, according to IG analyst Axel Rudolph. He pointed to strong earnings reports and easing monetary policy bets as key supports.

The index clawed back ground lost in a prior AI-fueled selloff. Inflation’s downward trend, combined with metal price spikes, restored investor faith. Traders now eye the 11,000-point milestone. Bank of England officials have flagged progress on price stability, though they stress data dependence for any rate moves.

Broader European markets joined the party. London’s benchmark outperformed amid sector rotation away from tech-heavy U.S. indexes. Copper futures hit multi-month highs on demand from green energy projects and supply worries in key mining regions. Antofagasta, with major operations in Chile, benefited directly from the metal’s rally.

Anglo American gained ground as investors bet on its diversified portfolio, including platinum and iron ore. Glencore’s dividend announcement sweetened the deal for shareholders, pushing its shares to session highs. The FTSE 250 mid-cap index also climbed, though by a more modest 0.8%.

UK equities have drawn fresh capital as Wall Street valuations stretch. Sterling’s slide against the dollar—down 0.5% on the day—boosted exporter profits. Official figures showed consumer prices rose just 1.9% in the year to January, below forecasts and the central bank’s 2% target.

Rate cut odds now top 70% for March, per futures markets. Policymakers meet next week, but signals point to patience unless data worsens. Miners’ surge reflects global commodity strength, with London firms capturing outsized gains versus rivals elsewhere.

The FTSE 100 first breached 10,000 in February 2024. Today’s close extends a bull run that began with election optimism and corporate resilience. Analysts warn of risks from U.S. policy shifts under a potential Trump return, but for now, momentum holds firm.