The FTSE 100 index soared to a fresh record close on Wednesday, propelled by robust trading updates and significant corporate developments, including a potential multi-billion pound takeover in the insurance sector.
Record-Breaking Performance
The FTSE 100 closed up 87.75 points, or 0.9%, at 10,402.34, marking a new all-time high. Earlier in the session, it had set a new intra-day peak of 10,481.54, underscoring the bullish sentiment in London's blue-chip market. Meanwhile, the FTSE 250 ended up 42.78 points, or 0.2%, at 23,333.15, while the AIM All-Share closed down 3.98 points, or 0.5%, at 814.35.
Entain and BetMGM Drive Gains
Entain, the owner of Ladbrokes, emerged as the top riser on the FTSE 100, surging 10% after its 50% owned BetMGM business in the United States reported a "record year" in 2025. The joint venture benefited from a fourth-quarter revenue surge, with a "particularly strong December" contributing to its success. BetMGM's net revenue jumped by a third to $2.80 billion, helping it swing to a net income of $175 million from a loss of $291 million in 2023.
Analysts at Davy Research noted that the market had been "extremely concerned" about the impact of prediction markets on regulated online sports betting, but the update from Entain should "reassure a very nervous market."
Beazley's Takeover Talks
Insurer Beazley rose 6.9% after announcing it has agreed to a possible takeover offer from Zurich Insurance, valuing the UK company at around £8 billion. In a joint statement, Beazley's board indicated it is "minded to accept" Zurich's offer if it becomes firm. Zurich has offered Beazley shareholders 1,310p per share in cash before allowed dividends, bringing the total value per share up to 1,335p. This offer is lower than a previous approach in June, which valued Beazley at 1,315p per share or £8.4 billion in total.
Other Notable Movers
DCC saw strong demand, climbing 8% after reporting that adjusted operating profit on a continuing basis grew strongly in the quarter to December compared to the prior year. Peel Hunt analyst Christopher Bamberry highlighted DCC's strong market positions, solid balance sheet, and cash generation, noting it is well-positioned to deliver its financial 2030 Energy Ebita target of £830 million.
GSK also performed well, up 6.9% after its fourth-quarter results exceeded forecasts. The pharmaceuticals giant reported pre-tax profit of £1.48 billion for the quarter ending December 31, up 15% from £1.29 billion a year earlier and ahead of consensus estimates of £1.37 billion. Core operating profit rose 14% to £1.63 billion, with core earnings per share up 9.9% to 25.5p.
European and US Market Overview
In European equities, the CAC 40 in Paris closed up 1%, while the DAX 40 in Frankfurt fell 0.7%. Stocks in New York were mixed, with the Dow Jones Industrial Average up 0.7%, the S&P 500 index down 0.3%, and the Nasdaq Composite declining 1.6%. Notable moves included Eli Lilly leaping 9.8% after beating expectations, while chip maker Advanced Micro Devices plunged 17% due to higher operating expenditure.
Economic Indicators
Back in London, the UK's service sector activity growth was slower than expected in January, with the S&P Global UK services PMI climbing to 54 points from 51.4 in December, but below the first estimate of 54.3 points. In the US, the services sector continued to expand, although pricing pressures remained elevated, according to reports from S&P Global and the Institute for Supply Management.
The US private sector added fewer jobs than expected in January, with ADP reporting an increase of 22,000 jobs, down from 37,000 in December and shy of forecasts. This data gained attention after a short government shutdown cancelled the publication of official nonfarm payrolls figures.
Currency and Commodity Movements
The pound was quoted lower at $1.3656 at the London close, compared to $1.3695 on Tuesday. The euro stood at $1.1798, against $1.1818. Gold was quoted lower at $4,916.04 an ounce, down from $4,971.16, while Brent oil rose to $67.41 a barrel from $67.15.
Biggest Risers and Fallers
The biggest risers on the FTSE 100 were Entain, up 61.4p at 648p; DCC, up 370p at 5,010p; GSK, up 134.5p at 2,080p; Beazley, up 80p at 1,240p; and BT, up 11p at 205p. The biggest fallers included Antofagasta, down 241p at 3,627p; Rightmove, down 18.6p at 450.5p; Anglo American, down 140p at 3,560p; Barclays, down 18.3p at 483.2p; and Fresnillo, down 126p at 3,776p.
Looking Ahead
Thursday's global economic calendar features interest rate decisions in the UK and Europe, eurozone retail sales figures, and a series of construction PMIs. On the corporate front, BT is set to release third-quarter results, while Vodafone issues a trading statement. Miner Anglo American will provide a trading update, and oil major Shell releases full-year results.
