FTSE 100 Hits Record Close as HSBC Upgrade and Mining Rally Lift London Markets

The FTSE 100 ended at a fresh record high on Wednesday, supported by a strong rally in banking and mining stocks, as investors responded positively to improved earnings guidance from HSBC and rising commodity prices.

London’s benchmark index climbed 1.18 percent to close at 10,806.41 points, marking its highest finish on record. The mid cap FTSE 250 also advanced, gaining 0.5 percent, reflecting broader strength across UK equities.

HSBC was the standout performer of the session, jumping nearly 8 percent after raising its target for return on tangible equity following better than expected annual results. The bank’s shares reached a record high as investors welcomed signs that its strategic shift towards Asia and wealth management is delivering improved profitability.

Market analysts said HSBC’s restructuring efforts, including streamlining operations and focusing on higher margin business lines, are beginning to show tangible results. Strong performance in its wealth division has been cited as a key driver of growth, reinforcing confidence in its long term outlook.

Mining stocks also provided significant support to the FTSE 100. Precious metal producers surged as gold prices strengthened, while industrial miners benefited from gains in copper. A softer US dollar added further momentum to commodity markets, making raw materials more attractive to global buyers. The mining sector has been one of the leading contributors to the index’s performance over the past year amid sustained demand and supply constraints.

Improved global risk appetite also played a role in lifting sentiment. Investors reacted positively to signs that traditional industries are adapting to advances in artificial intelligence rather than being displaced by them. This eased concerns that AI driven disruption could undermine established business models across sectors.

Not all stocks shared in the rally. Diageo fell sharply after its chief executive cut the company’s annual forecast and dividend, citing weaker demand in certain markets. Aston Martin also declined after announcing plans to reduce its workforce by up to 20 percent as it navigates pressure from US tariffs and softer sales in China.

Insurance group Hiscox moved higher after unveiling a 300 million dollar share buyback programme alongside growth in written premiums, adding to the day’s positive momentum in financial stocks.

Investors are now turning their attention to the upcoming budget update from Finance Minister Rachel Reeves, which will include new economic forecasts. Market participants expect a more measured fiscal statement compared with previous events, though it may still influence expectations around growth and public finances.

With banking strength, robust commodity prices and easing technology fears combining to support equities, the FTSE 100’s latest milestone reflects renewed confidence in segments of the UK market that had faced uncertainty in recent months.