FTSE 100 Soars to Record High Amid AI Optimism and Rolls-Royce's Triumph

Britain's premier stock index, the FTSE 100, achieved an unprecedented high on Thursday, buoyed by rising shares in Rolls-Royce and positive developments in artificial intelligence technology. Rolls-Royce saw a notable 4.9% increase in its stock value after the engine manufacturer reported a 40% leap in annual profits, driven by heightened demand for its aero-engines and the increasing energy requirements of data centers. This surge in aerospace and defense stocks contributed to the FTSE 100's incremental rise to 10,820 points, while the FTSE 250 remained stable.

The index has experienced a 5.8% rise in February, marking the sharpest monthly gain in a year and surpassing similar indices in the U.S. and Europe. Contributing factors include speculations on a potential rate cut by the Bank of England in March. Tech stocks, particularly bolstered by Nvidia's optimistic revenue projection, remain central as investors assess the rapidly evolving impact of AI on traditional business models.

In the corporate sphere, the London Stock Exchange Group saw a 6.7% increase after announcing a share buyback plan amidst pressures from activist investors and AI-related concerns. Conversely, Hikma Pharmaceuticals faced a decline, falling to its lowest in over three years after forecasting lower revenue growth. On the political scene, the Manchester election promises tight competition as Prime Minister Keir Starmer's Labour Party faces off against Reform UK and the Green Party under uncertain poll predictions.