The FTSE 100 stormed to fresh records again on Wednesday as London’s leading index brushed off concerns about threats to the UK’s leading AI adopters.
After closing lower yesterday amid heavy selling in names such as Pearson, RELX, and LSEG, the UK’s leading equity index burst higher to trade above 10,400 for the first time.
The FTSE 100 was 1.2% higher at 10,446 at the time of writing.
UK investors didn’t dwell on the potential impact of Anthropic’s new legal AI toolkit on the business models of AI service providers such as RELX and Pearson, and shifted focus to M&A and strong corporate updates.
“The dust settled on Wednesday after a dramatic session for tech-related stocks amid new AI disruption,” said Dan Coatsworth, head of markets at AJ Bell.
“A lot of the focus since the AI theme emerged has been on the winners and while there has been attention on potential losers from the proliferation of artificial intelligence, this part of the story has mainly stayed in the background.
“That changed on Tuesday when a raft of data and software businesses endured double-digit share price losses on the launch of a new suite of tools from AI outfit Anthropic for the legal sector.”
Although RELX, Pearson, and the London Stock Exchange Group fell again on Wednesday, there was enough strength elsewhere to push the FTSE 100 higher.
GSK shares soared above 2,000p for the first time since 2001 as investors cheered a doubling of operating profit amid strong sales growth.
“A Q4 sales and profit beat was driven by broad-based double-digit growth across higher-value specialty franchises. Oncology continues to stand out, while Respiratory, Immunology and HIV all delivered excellent gains, reinforcing confidence that GSK’s growth is by no means reliant on a single pillar,” said Mark Crouch, market analyst for eToro.
“Management now guides to 3–5% revenue growth in 2026, following a strong 7% advance in 2025. While that implies moderation, it also signals a more disciplined and sustainable trajectory. Shares have broken above levels not seen in over two decades, pointing to a genuine shift in investor sentiment after years of mediocrity.”
The insurance sector was well bid after Beazley announced the board had agreed to a takeover by Zurich Insurance. Beazley was the FTSE 100’s top riser, jumping over 8% on the news, providing a boost to the sector, with Hiscox rising 4%.
“It was clear from previous statements that Zurich was determined to own Beazley. Having done the M&A dance for some time and tried its luck with various proposals, Zurich has finally offered the right number to win over the target’s board,” Dan Coatsworth said.
“There is always the right price for everything, and Zurich appears to have found it.”
The combination of acquisitions and strong organic growth culminated in a positive trading update for DCC, which sent shares 8% higher.
After dominating headlines over the past week, mining companies had a less dramatic session, with Fresnillo creeping up 1% and Antofagasta losing 1%.