FTSE 100 hits record high as HSBC and miners lead gains
The FTSE 100 reached a record 10,806.41 on Wednesday as HSBC shares rose 7.9 percent. Mining stocks also climbed while Diageo fell on a lowered forecast.
The United Kingdom[Country:{ "assets":{ "country":"GB" } }] stock market reached a new milestone on Wednesday as the blue-chip FTSE 100 index climbed 1.18% to close at 10,806.41 points. This record-breaking performance followed a period of relative stagnation and was mirrored by a 0.5% gain in the domestically focused FTSE 250. Investors were buoyed by strong corporate earnings and a broader improvement in global risk appetite.
HSBC Holdings plc[Symbol:{ "assets":{ "symbol":"HSBA.L" } }] led the charge, with its shares surging 7.9% to an all-time high. The banking giant raised its target for a key profitability metric after reporting annual profits that surpassed market expectations. The bank's strategy of narrowing its geographic focus while expanding its services for high-net-worth clients appears to be paying off.
This strategy appears to be working as it reported a strong performance from its wealth division, said Russ Mould, investment director at AJ Bell plc[Symbol:{ "assets":{ "symbol":"AJB.L" } }].
The mining sector also provided significant momentum, with precious metal miners hitting a record high and industrial metal miners reaching their best levels since 2008. These gains were driven by a softer dollar, which pushed up the prices of gold and copper. Over the past year, miners have been a primary engine for the FTSE 100, benefiting from an intense rally in global commodity prices.
Sentiment was further supported by developments in the United States[Country:{ "assets":{ "country":"US" } }], where the AI startup Anthropic announced several new partnerships. This move suggested that established industries are successfully integrating artificial intelligence rather than being immediately displaced by it, easing broader market anxieties.
In other corporate movements, Hiscox Ltd[Symbol:{ "assets":{ "symbol":"HSX.L" } }] gained 5.2% after announcing a $300 million share buyback and reporting growth in insurance premiums. However, the mood was not universally positive. Diageo plc[Symbol:{ "assets":{ "symbol":"DEO" } }] saw its shares tumble 12.7% after its new CEO, Dave Lewis, lowered the company's annual forecast and reduced the dividend.
Meanwhile, Aston Martin shares fell 2.9% following the luxury automaker's decision to cut its workforce by up to 20%. The company is currently navigating the impact of import tariffs in the American market and weakening demand in China[Country:{ "assets":{ "country":"CN" } }]. Looking ahead, market participants are awaiting the upcoming budget update from Finance Minister Rachel Reeves, which is expected to include fresh economic forecasts for the country.
