On Thursday, Britain’s FTSE 100 reached a record high, propelled by Rolls-Royce, which raised its annual forecasts. Additionally, sentiment improved due to optimism surrounding AI, following stronger-than-anticipated results from U.S. chip manufacturer Nvidia. Rolls-Royce opened new tab rose 4.9% and hit a record high after reporting a 40% jump in annual profit, driven by strong demand for its aero-engines and rising power needs from data centres. British aerospace and defence stocks rose to an all-time high following the results. The blue-chip FTSE 100 index nudged 0.1% higher to 10,820 points as of 1023, while the domestically focused mid-cap FTSE 250 was largely unchanged.

The FTSE 100 has risen 5.8% thus far in February, positioning itself for its most significant monthly increase in a year and surpassing its U.S. and European counterparts, supported by investor expectations of a further rate cut by the Bank of England in March. Globally, technology equities are under scrutiny as investors assess the potential impact of rapidly evolving artificial intelligence tools on traditional business frameworks. Nvidia opens new tab projected first-quarter revenue ahead of expectations on Wednesday, lifting its shares by 1.5% in premarket trading. The UK’s tech stocks rose 0.8%. Investors meticulously analyzed a series of domestic corporate updates.

London Stock Exchange Group opens new tab jumped 6.7% after announcing a share buyback plan at a time the company faces pressure from activist investor Elliott Management and battles concerns AI will squeeze its business model. Hikma Pharmaceuticals opened a new tab, falling 15.8% to a more-than-three-year low, sinking to the bottom of the benchmark index after the drugmaker forecast slower annual revenue growth.

HSBC opens new tab fell 1.5% a day after a near 8% climb following strong results. The lender has initiated the sale process for its Singapore life insurance product manufacturing business, aiming for a valuation exceeding $1 billion, according to sources. On the political front, Prime Minister Keir Starmer encounters a significant challenge on Thursday as voters in Manchester prepare to cast their ballots for a new lawmaker in an election that polls indicate is highly competitive among the British leader’s Labour Party, the populist Reform UK, and the left-leaning Greens.