FTSE 100 Hits New Peak Amid AI Adaptation and Mining Surge
The FTSE 100 reached a new peak, buoyed by HSBC's upbeat earnings target and strong performances from miners, as fears of AI disruption eased. U.S. AI startup Anthropic's new partnerships indicate traditional businesses are adapting to AI advances. HSBC's strategic focus on wealthier regions bolstered its wealth division.
The FTSE 100 index in the UK reached an all-time high on Wednesday, driven by HSBC's revised earnings target and a surge in mining stocks. This development comes as global concerns over AI's impact on traditional businesses began to diminish, boosting overall market sentiment.
HSBC shares soared nearly 8% after the bank increased a key profitability target following better-than-expected annual earnings. This performance was attributed to the bank's strategic refocus on fewer, wealthier regions, leading to robust outcomes in its wealth division, according to AJ Bell's investment director, Russ Mould.
Meanwhile, precious and industrial metal miners propelled the FTSE 100, with precious metal miners reaching record highs and industrial metal miners seeing their highest levels since 2008, fueled by climbing gold and copper prices amid a weaker dollar. In contrast, spirits manufacturer Diageo faced declines, and Aston Martin announced significant workforce reductions.
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