FTSE 100 Live: Lloyds and HSBC stock tumble drags index into red

Good morning from the Morning Wire liveblog team.

While the FTSE has been on a tear since the start of the year, there’s no denying that the glittering allure of gold is the real asset that investors can’t turn their eyes away from.

A flurry of political drama across several major economies has reignited fears around ballooning sovereign debt, market strategists have said, fuelling a sharp rise in the price of gold.

The precious metal shot past $4,000 per troy ounce for the first time in its history on Wednesday, a jump of a sixth in just a month.

Analysts said the ongoing political impasses in France and the US, and Japan’s new pro-stimulus Prime Minister have carried the price of gold past the milestone, little more than six months on from it breaching $3,000.

The latest spurt – which has seen the spot price of gold jump more than three per cent in October alone – has extended a run of astronomical gains for the yellow metal, which is now up more than 50 per cent since the start of the year and nearly double since the start of 2024.

Several forces – including ongoing geopolitical and trade uncertainty and growing appetite from central banks – have combined to push the gold price higher. But many analysts are pointing to countries’ ballooning debt piles and the increased likelihood that policymakers will manage them by allowing fiat currencies – meaning a national currency like the dollar or sterling – to erode in value.

Here’s a look back at our top headlines from yesterday:

• Motor finance: Lloyds, Barclays shares jump as FCA softens blow
• Blow to Anglo American as disruption at Teck mines leads to cut in production
• Kemi Badenoch pledges to abolish stamp duty
• Greencore: Strawberry sandwich maker’s shares rise amid M&S cyber fallout
• Rare reprieve for Reeves as ONS says data error cuts borrowing by £3bn
• Hargreaves Lansdown co-founder to step down from board
• Bank of England sounds alarm on ‘high risk’ AI bubble