The FTSE 100 opened positively, rising 0.7% to 10,208, as global risk sentiment improved following signs of tariff relief and stabilising geopolitical developments. The index added around 70 points, supported by gains in banking, healthcare, and consumer defensives, while mining and insurance stocks lagged.
Barclays advanced 1.97% to £484.95, benefiting from improved risk appetite and rising global equity sentiment.
AstraZeneca gained 1.62% to £13,554, while Global beverages group Diageo added 0.69% to £16,83.50, supported by its stable earnings.
British American Tobacco 2.43% to £4,351, Land Securities gained 2.36% to £651, and EasyJet rose 2.22% to 493.80.
On the downside, mining stocks struggled as commodity momentum cooled. Rio Tinto slipped 1.43% to £6,546, while Antofagasta fell 1.34% to £3,547.
Babcock International Group declined 1.82% to £1,458.
In a statement, Beazley said it would unanimously reject a £7.7 billion takeover bid from Zurich.
The firm said the offer “materially undervalues Beazley and its longer-term prospects as an independent company”.
It added that the terms of Zurich’s latest proposal are below the last proposal put forward by Zurich in late June last year, which was valued at £1,315 per share.
Shares in Beazley dove 4% on open before clawing back some losses to sit 1.8% in the red.
The UK government has borrowed more in the current financial year than the Office for Budget Responsibility forecast in November.
The OBR predicted in November that total government borrowing would be just over £138 billion this year.
But new Office for National Statistics (ONS) estimates have shown the government is already borrowing more than £140 billion this year.
Public sector borrowing in December fell to £11.6 billion, down 38% year-on-year, driven by a surge in tax receipts.
Income tax and national insurance collections rose sharply, though economists cautioned that overall deficit reduction remains slow and politically sensitive.
In housing, a Zoopla survey found that almost 50% of homes in the UK appreciated in 2025, with North England, Scotland and Northern Ireland outperforming the south, where affordability pressures persist.
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On Wall Street, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite each climbed around 1.2%, recovering some of Tuesday’s sharp losses.
In the commodities market, gold was trading around $4,822 per ounce, and Brent crude oil was around $65.20 per barrel, giving a neutral inflation indication for equities.