London Stocks Hit Record High as Banking Powers FTSE Rally

Britain’s benchmark stock index surged to a fresh all-time high on Wednesday, buoyed by a sharp rally in banking heavyweight HSBC and renewed strength in commodity-linked shares.

The FTSE 100 climbed 1% to close at 10,787.30 points, marking a new record after two sessions of relative stability. The advance underscores growing investor confidence in the resilience of UK blue chips amid shifting global economic dynamics.

Meanwhile, the domestically focused FTSE 250 added 0.4%, reflecting improved global risk appetite and broader participation in the rally.

Shares in HSBC jumped 5.8% after the lender raised its profitability target, following annual earnings that exceeded market expectations.

The upbeat outlook helped ease lingering concerns over slowing global growth and competitive pressures from emerging artificial intelligence models that have unsettled traditional business sectors.

Ross Mould, investment director at AJ Bell, noted that HSBC’s strategic pivot — focusing on fewer geographic markets while prioritizing affluent clients — is delivering results. The bank’s wealth management division in particular has posted strong performance, reinforcing investor faith in its long-term strategy.

Beyond financials, gains in mining stocks provided additional fuel for the index. Higher copper and gold prices, supported by a weaker U.S. dollar, lifted shares in precious and industrial metals producers.

Mining companies have been among the FTSE’s strongest performers over the past year, riding a historic surge in commodity prices that has reshaped the earnings landscape for resource-heavy indices like London’s.