FTSE 100 hits new high as HSBC raises earnings target, AI fears ease

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 intelligence models on established businesses supported global sentiment.

The blue-chip FTSE 100 index rose 1% to 10,787.30 points as of 1103 GMT after being largely unchanged over the past two sessions, while the domestically focused mid-cap FTSE 250 gained 0.4%.

Global risk appetite improved after U.S.-based AI startup Anthropic partnered with several companies and launched new AI plug-ins, signalling that traditional businesses are adapting to AI advances rather than facing immediate disruption.

HSBC climbed 5.8% after the bank lifted its target for a key profitability metric after its annual profit beat expectations.

“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.

READ MORE: FTSE 100 dips amid tariff uncertainty and AI disruption concerns

Precious metal miners and industrial metal miners rallied as copper and gold prices climbed against a softer dollar.  Miners have been among the top drivers of the FTSE 100 over the past year following an unprecedented rally in commodity prices.

Among other shares, spirits maker Diageo fell 6.1% after new CEO Dave Lewis cut the annual forecast and dividend, underscoring the scale of the turnaround ahead.

Hiscox rose 6.2% to the top of the blue-chip index 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 1.8% 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.