The FTSE 100 in the UK reached a record high on Wednesday, buoyed by increases in energy stocks and the insurer Beazley, as investors anticipated the forthcoming monetary policy decision from the Bank of England later this week.
The blue-chip FTSE 100 index was up 1.4% at 10,457.84 points at 1155, while the domestically focused mid-cap FTSE 250 was up 0.6%. Energy stocks climbed 2%, tracking higher crude prices as geopolitical tensions simmered between the United States and Iran.

Beazley climbed 8.7% to the top of the FTSE 100 as the British insurer agreed to the terms of a sweetened 8 billion pound ($10.97 billion) takeover proposal from Switzerland’s Zurich Insurance. In the interim, European software companies continued to attract attention after Tuesday’s market downturn, as revised artificial intelligence models cast new uncertainties regarding the sustainability of their business models. Business information group RELX slid 2.6%, while exchange operator and data provider London Stock Exchange Group dipped 2.4%. On Tuesday, the equities experienced declines exceeding ten percent.

IT firm Softcat slid 6% to a one-year low, while HG Capital, which recently agreed to buy U.S. financial software maker OneStream for $6.4 billion, slumped another 7.4%. Advertising firm WPP experienced a decline of 3.2%, reaching its lowest point since 1998. The likelihood of a further decline in British interest rates this year appears strong; however, the Bank of England may provide ambiguous guidance on the timing and extent of any reductions in borrowing costs during Thursday’s announcement, as it seeks a more definitive understanding of inflation trends. The Bank of England is anticipated to maintain its benchmark borrowing costs at 3.75% during the upcoming Thursday meeting.

In January, the services sector in Britain experienced robust growth, accompanied by an increase in confidence, according to a survey released on Wednesday. However, firms indicated a significant rise in their prices, which could pose a concern for the Bank of England as it approaches its upcoming policy meeting.