- FTSE 100 up 0.1%, FTSE 250 flat
- Rolls-Royce rises on strong earnings and raised targets
- HSBC begins sale of Singapore life insurance unit, sources say
- Starmer faces close fight in Manchester versus Reform, Greens
Feb 26 (Reuters) - Britain's FTSE 100 hit a record high on Thursday, lifted by Rolls-Royce after the engine maker raised its annual forecasts, while sentiment was also buoyed by optimism over AI following better-than-expected results from U.S. chip major Nvidia.
Rolls-Royce rose 4.9% and hit a record high after reporting a 40% jump in annual profit, driven by strong demand for its aero-engines and rising power needs from data centres. British aerospace and defence stocks rose to an all-time high following the results.
The blue-chip FTSE 100 index nudged 0.1% higher to 10,820 points as of 1023 GMT, while the domestically focused mid-cap FTSE 250 was largely unchanged.
The FTSE 100 has climbed 5.8% so far in February, on pace for its steepest monthly rise in a year and outperforming its U.S. and European peers, buoyed by investor bets on an additional Bank of England rate cut in March.
Globally, tech stocks remain in focus as investors weigh how fast-advancing AI tools might disrupt established business models.
Nvidia projected first-quarter revenue ahead of expectations on Wednesday, lifting its shares by 1.5% in premarket trading. The UK's tech stocks rose 0.8%.
Investors also sifted through a slate of domestic corporate updates.
London Stock Exchange Group jumped 6.7% after announcing a share buyback plan at a time the company faces pressure from activist investor Elliott Management and battles concerns AI will squeeze its business model.
Hikma Pharmaceuticals fell 15.8% to a more-than-three-year low, sinking to the bottom of the benchmark index after the drugmaker forecast slower annual revenue growth.
HSBC fell 1.5% a day after a near 8% climb following strong results. The lender has started the sale process for its Singapore life insurance product manufacturing business, and is hoping for the deal to be valued at more than $1 billion, sources told Reuters.
On the political front, Prime Minister Keir Starmer faces a big test on Thursday when voters in Manchester cast their ballots for a new lawmaker in an election polls say is too close to call between the British leader's Labour Party, populist Reform UK and the left-leaning Greens.
Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Leroy Leo
Source: Reuters