The UK’s FTSE 100 index touched a record high on Wednesday, helped by gains in energy stocks and insurer Beazley, while investors awaited the monetary policy decision of the Bank of England (BoE) later this week.
The blue-chip FTSE 100 was up 1.4% at 10,457.84 points at 11.55am GMT, while the domestically focused mid-cap FTSE 250 was up 0.6%. Energy stocks climbed 2%, tracking higher crude prices as geopolitical tension simmered between the US and Iran.
Beazley climbed 8.7% to the top of the FTSE 100 as the British insurer agreed to the terms of a sweetened £8bn takeover proposal from Switzerland’s Zurich Insurance.
European software names remained in focus following Tuesday’s selloff when updated AI models raised fresh doubts about whether software firms can defend their business models.
Business information group RELX slid 2.6%, while exchange operator and data provider London Stock Exchange Group dipped 2.4%. The stocks suffered double-digit losses on Tuesday.
IT firm Softcat slid 6% to a one-year low, while HG Capital, which recently agreed to buy US financial software maker OneStream for $6.4bn, slumped another 7.4%. Advertising firm WPP fell 3.2% to its lowest since 1998.
British interest rates are likely to fall further this year, but the BoE might be vague on Thursday about when or by how much it will cut borrowing costs, as it awaits a clearer picture on inflation. The BoE is expected to keep its benchmark borrowing costs unchanged at 3.75% on Thursday.
Activity in Britain’s services sector grew strongly in January and confidence rose, a survey showed on Wednesday, but firms also reported a jump in their prices, a potential concern for the BoE ahead of the policy meeting.
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