(Reuters) – London’s blue-chip index jumped to a record high on Thursday, lifted by shares of AstraZeneca after upbeat results and ahead of an anticipated rate cut from the Bank of England later in the day.
AstraZeneca was one of the top gainers on the FTSE 100, with shares up 5.1% and set for their best day since April 2024. The FTSE 350 pharma and biotech index jumped 3.4% to an over three-month high.
The drugmaker’s update on a likely fine in China reassured investors the business impact would be minimal, while it reported fourth-quarter earnings slightly above analysts’ estimates.
The blue-chip FTSE 100 jumped 1.3%, while the domestically focussed mid-cap FTSE 250 gained 1.2%.
All major subsectors were in the green with industrial metal miners rising 3.6%, led by a 13.6% jump in Ferrexpo, and a 6% gain in Anglo American after its fourth-quarter production report.
Anglo American was also the biggest FTSE 100 gainer.
Meanwhile, focus was squarely on the Bank of England, which is expected to ease borrowing costs by 25 basis points later in the day.
The BoE’s policy rate currently stands at 4.75%, one of the highest among wealthier economies, with policymakers grappling to balance stimulating economic growth with persistent inflation.
“Domestic price pressures remain too high and wage growth in particular is at uncomfortable levels for the Bank of England (BoE), at the same time, growth has slowed,” said Gustav Helgesson, SEB macro strategist, who expects a rate cut at the day’s meeting.
“We expect the policy rate to be cut gradually three more times during 2025.”
Highlighting the economic challenges, British construction firm activity dropped in January with housebuilding contracting at its fastest rate in a year.
Elsewhere, a survey showed British households’ expectations for inflation fell in January, with one-year expectations falling to 3.5% from 3.7%.
(Reporting by Lisa Pauline Mattackal in Bengaluru; Editing by Vijay Kishore)
