By Tharuniyaa Lakshmi Feb 25 (Reuters) - Britain's FTSE 100 touched a fresh peak on Wednesday after lender HSBC lifted a key earnings target, while easing concerns about the impact of artificial
FTSE 100 Hits New Record as HSBC Boosts Earnings and Miners Rally
By Tharuniyaa Lakshmi
Feb 25 (Reuters) - Britain's FTSE 100 closed at a fresh peak on Wednesday after HSBC lifted a key earnings target and miners hit new highs, as fading worries over AI’s disruption to traditional businesses lifted global sentiment.
FTSE 100 Reaches New Heights
The blue-chip FTSE 100 index closed up 1.18% at 10,806.41 points after being largely unchanged over the past two sessions, while the domestically focused mid-cap FTSE 250 gained 0.5%.
Global risk appetite improved after U.S.-based AI startup Anthropic partnered on Wednesday with several companies to develop new plug-ins, signalling that traditional businesses are adapting to AI advances rather than facing immediate disruption.
HSBC climbed 7.9% to a record high after the bank lifted its target for a key profitability metric after annual profits beat expectations.
HSBC's Strategic Shift
"The bank has slimmed down to focus on fewer regions, and to pay greater attention to wealthier individuals. This strategy appears to be working as it reported a strong performance from its wealth division," said Russ Mould, investment director at AJ Bell.
Precious metal miners rose 3.8% to an all‑time high and industrial metal miners gained 3.3%, their highest level since 2008, as copper and gold prices climbed on a softer dollar [GOL/] [MET/L]. Miners have been among the FTSE 100’s top drivers over the past year following an unprecedented rally in commodity prices.
Finance minister Rachel Reeves will present new economic forecasts in Tuesday’s budget update, aiming for a quieter affair, in contrast to the three more momentous fiscal events she has overseen since taking office.
Market Movers and Shakers
Among other shares, spirits maker Diageo fell 12.7% to the bottom of the benchmark index after new CEO Dave Lewis cut the annual forecast and dividend.
Hiscox rose 5.2% after the insurer announced a $300 million share buyback plan and reported a 5.9% rise in annual insurance contract written premium.
Aston Martin fell 2.9% after the luxury carmaker said it will cut its workforce by up to 20%, as it strives to recover from the impact of U.S. import tariffs and weak demand in China.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Sahal Muhammed, Elaine Hardcastle)
