London, Feb 4, 2026, 10:55 GMT — Regular session
- FTSE 100 gained roughly 1.0% to hover around 10,419; FTSE 250 climbed about 0.4%
- Beazley surges after Zurich boosts its takeover offer; GSK climbs following upbeat outlook
- Traders remain cautious following a sharp sell-off in data and software stocks driven by AI concerns
London’s main index climbed on Wednesday, the FTSE 100 rising 1.0% to 10,418.51 by 10:40 GMT, having briefly hit 10,419.51 earlier in the session. The mid-cap FTSE 250 added 0.4%, reaching 23,392.40.
The blue-chip index is edging back toward this week’s highs, despite ongoing jitters over a sudden revaluation of “AI winners and losers.” On Tuesday, the FTSE 100 dipped 0.26% after touching an all-time peak, dragged down by a tech-driven selloff that saw RELX plummet 15% and London Stock Exchange Group slide 12.7%. reuters.com
The Bank of England is now a major force behind market moves. Sterling climbed to a fresh five-month peak against the euro. Strategists say the upcoming rate decision will heavily influence stocks tied to the UK economy. Traders are betting on roughly 35 basis points of BoE rate cuts by year-end — remember, basis points are hundredths of a percentage point — though this week’s policy signals are expected to remain cautious.
Beazley surged after Zurich Insurance revealed plans to pay 1,310 pence per share in cash, plus allowed dividends up to 25 pence, valuing the company at as much as 1,335 pence per share. The insurer said it would likely back the deal once Zurich submits a firm offer. Shares hit a record high of 1,265p, climbing nearly 9%. “After announcement it would seem risks should be low,” commented Mark Kelly, CEO of advisory firm MKI Global. reuters.com
GSK boosted healthcare stocks after projecting slower sales growth this year but reaffirming its long-term goal of exceeding 40 billion pounds in sales by 2031. Shares climbed as much as 2.3% to 1,990 pence early on, hitting their highest level in over 24 years. “The current year will be a key year of execution and operational delivery,” said new CEO Luke Miels. reuters.com
The index-level gains masked renewed weakness in AI-exposed data and software stocks. Reuters noted LSEG and RELX fell for a second day after Anthropic’s recent product updates stoked fears that AI could threaten existing business models. “Anthropic is now… parking its tanks on their lawn,” said IG chief markets strategist Chris Beauchamp. reuters.com
The FTSE 100’s defensive stance steadied it through a volatile week. Monday saw the index hit a record close, driven by gains in financial and pharmaceutical sectors as investors eyed central bank moves and volatile commodity prices.
The downside risk is obvious: if the AI-driven selloff extends into a wider de-rating, it could overwhelm any deal and earnings support. A more abrupt shift in BoE guidance might also rattle rate-sensitive sectors, particularly following sterling’s recent rally.
The Bank of England’s policy decision comes Thursday, with investors focused on the statement and Governor Andrew Bailey’s remarks. They’ll be looking for signs officials might opt for fewer or earlier rate cuts than the market currently expects.
