FTSE 100 Live: Index Hits Record 10,609 as BAE Jumps 6%, Miners and Insurers Lift Index

FTSE 100 surged to a fresh record of 10,609.91 gaining 0.5% or 53 points as strong corporate earnings and easing inflation data boosted investor confidence. The benchmark extended gains from the previous session’s record close, supported by defence, mining and insurance stocks.

BAE Systems Leads Rally with 6% Surge

Shares of BAE Systems climbed around 6% to £2,149 making it the top performer on the index. The rally followed forecast-beating annual results. Underlying earnings are also up 12% to £3.32 billion and sales increased 10% to £30.7 billion.

The defence giant reported a record £83.6 billion order backlog. It reflects strong global demand amid heightened geopolitical tensions. 

The company also lifted its full-year dividend by 10% to o £36.3 per share and it reinforces investor optimism.

Mining Stocks Mixed as Glencore Returns $2 Billion

Mining heavyweight Glencore gained approximately 2% to £494.5 despite reporting a 6% drop in earnings to $13.5 billion. 

Revenue rose 7% to $247.5 billion but weaker coal prices and higher operating costs weighed on margins. 

The company announced plans to return $2 billion to shareholders, helping support the stock.

Among others, Antofagasta advanced 2.32% to o £3,701 while Anglo American rose 1.54% to o £3,553. This reflects renewed interest in copper-linked stocks.

Insurers and Consumer Stocks Add Support

Insurance firm Admiral Group gained 1.76% to o £2,8892 while Coca-Cola HBC added 0.76% to £4,760. 

Also, AstraZeneca edged up 0.52% to £15,602, helping cushion volatility.

On the downside Next slipped 0.42% to o £12,940, Unilever fell 0.85% to £5,367 and London Stock Exchange Group declined 0.79% to £7,512. 

Also, 3I Group dropped 2.54% to o £3,343.

Inflation Cools, Rate Cut Hopes Build

UK inflation slowed to 3% in January, down from 3.4% in December and marked the lowest level since March last year. 

Lower petrol prices, softer airfares and easing food costs contributed to the decline.

Food inflation is still elevated at 3.6%, above headline CPI. Services inflation stayed sticky at 4.4% but economists expect CPI to move closer to the 2% target by spring as administrative price pressures fade.

Markets are now pricing in a potential Bank of England rate cut as early as March with some forecasts suggesting rates could fall toward 3% later this year.

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Global Backdrop

The Dow Jones Industrial Average, S&P 500 index and Nasdaq Composite all finished up by 0.1% while Nikkei 225 has rallied by more than 1%.

The price of gold is at $4925 an ounce and Brent Crude at $67.25 a barrel. The pound stood at $1.3555 ahead of the release of today’s inflation print.