London's premier stock index, the FTSE 100, achieved a remarkable new record close on Wednesday, surging over one percent to finish at 10,806.41p. This milestone comes after a period of tariff-induced risk aversion, marking a significant rebound for the blue-chip index.
HSBC and Metlen Energy Drive the Rally
The record-breaking performance was primarily fueled by a powerful rally from HSBC, the City's most valuable stock, which jumped eight percent following an investor update. Despite a profit miss, the update provided ample enthusiasm for shareholders, propelling the banking giant forward.
Close behind was Metlen Energy, which advanced after securing a deal with Shell and miner Fresnillo, capitalizing on the glistening price of gold. This combination of strong corporate news helped push the index to unprecedented heights.
Analyst Optimism and Market Resilience
Chris Beauchamp, chief market analyst at IG, commented on the index's unstoppable momentum. "Another week like this and the index will top 11,000, just weeks after it first crossed the magic 10,000 level," he said. Beauchamp highlighted the FTSE 100's appeal, noting its lower valuation compared to pricey US markets and key sectors that are less vulnerable to AI-driven panic selloffs.
Even a staggering 12 percent fall at spirits maker Diageo, following a major sales miss and dividend cut under new chief executive 'Drastic' Dave, failed to dampen the blue-chips' spirits. This resilience underscores the broad-based strength of the current market rally.
Pound Remains Flat Amid Stock Surge
While stocks soared, the pound remained flat, reflecting a cautious stance in currency markets despite the equity rally. This divergence suggests that investors are carefully weighing broader economic factors alongside the stock market's performance.
Looking Ahead: Momentum and Key Stories
The question on everyone's mind is whether the FTSE 100's momentum will sustain its record run. As the market watches closely, several top stories from yesterday continue to shape the financial landscape, including Gucci's AI-generated ads sparking backlash, Sheffield Wednesday seeking new buyers after a £40m takeover collapse, and Revolut investors eyeing a $100bn price tag in a push for a new share sale.
Other notable developments include IForex shares lifting after its trading platform debuted on the London Stock Exchange, a surge in pension contributions by women in their forties, John Lewis axing its build-to-rent venture due to high costs, and Microsoft hopping on the Lizzie line in search of a new London HQ.
As the liveblog has ended with no further updates, market participants remain vigilant, anticipating whether this record rally will pave the way for even greater gains in the coming days.
