London close: FTSE 100 jumps to new high as HSBC, miners surge

(Sharecast News) - London's FTSE 100 surged to a new record high on Wednesday, helped by big gains from heavyweight financial and mining stocks, as UK markets continued to shrug off ongoing tariff-related uncertainty.

Solid results from the likes of HSBC, Hiscox and St James's Place, and rising commodity prices helping the share prices of resource explorers, pushed the FTSE 100 up 1.2% to a new closing peak of 10,806.41, topping last Friday's record close of 10,686.18.

"There seems no stopping the FTSE 100. Another week like this and the index will top 11,000, just weeks after it first crossed the magic 10,000 level," said Chris Beauchamp, chief market analyst at IG.

"It has the winning combination for investors right now - a lower valuation than pricey US markets, and key sectors driving that are much less vulnerable to AI-driven panic selloffs. Mining, defence and banking have all yet to be touched by an AI competitor, while its pharma stocks provide further heft and dividend payments too."

Excitement was also building ahead of results from Nvidia, due after the closing bell on Wall Street, with investors expecting another set of impressive quarterly figures from the American chip giant, which helped US markets surge to record highs last year.

HSBC gains as results impress

HSBC Holdings jumped 8% as it reported better-than-expected annual results despite a 7.4% fall in pre-tax profits due to the adverse impact from legal provisions, organisational simplification and the sale of its French-retained portfolio of loans. Pre-tax profits at the lender came in at $29.9bn in 2025, beating estimates of $28.86bn. Revenue rose 4% to $68.27 versus company-compiled consensus forecasts of $67.36bn.

St James's Place rose 7% after reporting higher profits and record funds under management for 2025, as the UK wealth manager accelerated shareholder return plans following what it described as a year of "strong delivery and execution".

Insurance firm Hiscox was 5% higher after lifting its full-year dividend payout as it reported a third consecutive year of record pre-tax profits in 2025, with both underwriting and investment income continuing to improve.

Meanwhile, precious metals miner Fresnillo shone, along with miners Antofagasta, Anglo American, Rio and Glencore as copper and gold prices rose 0.8% and 1.0% respectively.

On the downside, drinks giant Diageo tumbled 13% as it posted a fall in interim sales and halved the dividend after weak trading in North America weighed heavily. Net sales fell 4% to $10.5bn in the six months to 31 December, while the dividend was cut to 20cents a share, from 40.5cents. Diageo said the reduction would bolster the balance sheet and create more financial flexibility.

Haleon was also in the red, falling 7% as it posted weaker-than-expected annual sales, hit by a less severe cold and flu season and ongoing softness in the US.