25th Feb 2026 12:07
(Alliance News) - European stocks moved higher on Wednesday, with some well-received earnings from HSBC and share price rises for miners breathing life into London's FTSE 100.
The FTSE 100 index was up 105.03 points, 1.0%, at 10,785.62. The blue-chip index hit a record high of 10,788.25.
The FTSE 250 added 161.77 points, 0.7%, at 23,662.81, and the AIM all-share added 1.83 points, 0.2%, at 817.36.
The Cboe UK 100 was up 1.0% at 1,074.72, the Cboe UK 250 rose 0.5% at 20,941.33, and the Cboe small companies was up slightly at 18,381.10.
The CAC 40 in Paris and the DAX 40 in Frankfurt rose 0.4%. Like the FTSE 100, the CAC achieved a new record high.
"London's footsie is in a footloose mood again, with higher metals prices buoying mining stocks and corporate results from financial giants surprising on the upside. The index has scaled fresh heights in early trade, with investors showing enthusiasm for London-listed stocks amid global uncertainty," Wealth Club analyst Susannah Streeter commented.
Supporting the FTSE 100, HSBC rose 5.8%. The FTSE 100's second-largest constituent by market capitalisation lifted its return on tangible equity guidance upgrade.
"We are raising our ambition and targeting a 17% RoTE or better, excluding notable items, in each year from 2026 to 2028. We are also targeting year-on-year revenue growth over the same period on the same basis, rising to 5% in 2028," Chief Executive Officer Georges Elhedery said.
It had previously expected a "mid-teens" RoTE outcome.
Also impressing, St James's Place added 5.9% as it said it will increase shareholder returns after reporting better-than-expected 2025 results.
The London-based asset manager reported a post-tax underlying cash result of GBP462.3 million in 2025, up 3.4% from GBP447.2 million the year prior, and ahead of GBP445.5 million company-compiled consensus. Pretax profit increased 28% to GBP1.34 billion from GBP1.05 billion.
"We delivered growth in new business, growth in funds under management, and growth in the underlying cash result, while at the same time delivering strong returns for our growing number of clients," commented Chief Executive Mark FitzPatrick.
"The combination of another strong financial outcome together with good operational and strategic progress, has enabled the board to update our shareholder returns guidance a year earlier than originally planned. Going forward, we intend to increase total annual shareholder distributions to 70% of the underlying cash result through a combination of dividends and share buy-backs," he added.
The move to 70%, up from 50% previously, will comprise ordinary dividends, which the firm expects will make up at least 40% of total shareholder returns, and share buy-backs.
The best performer on the FTSE 100 was Fresnillo, up 6.1%.
Gold rose to USD5,173.89 an ounce midday Wednesday from USD5,142.02 late Tuesday.
Streeter added: "Mining stocks have ramped higher, with tense trade and geopolitics keeping up enthusiasm for precious metals, while demand for copper has increased. Silver, in particular, has seen another surge, rebounding from the lows reached earlier in the month. Trade policy is colliding with industrial demand and structural undersupply to put fresh upwards pressure on prices."
Anglo American added 4.7%, while Antofagasta shot up 4.4%.
Diageo fell 8.2%. The brewer and distiller reduced annual guidance and lowered its dividend.
It halved its first-half payout to 20 US cents per share from 40.50 cents a year prior.
Diageo said it now expects a full-year organic net sales decline of 2% to 3%, "given further weakness in the US". It had previously predicted an outcome between " flat to slightly down". Organic operating profit outcome is now expected to be between flat to growth low-single digits, lowered from the prior view of growth in the "low to mid-single-digit" range.
iFOREX Financial Trading debuted in London on Wednesday. The stock traded at 205.00p at midday, up 5.1% from its 195p initial public offering price.
"Admission onto the Main Market of the London Stock Exchange marks a proud moment for iFOREX as we accelerate our vision to become a global fintech market leader. I would like to extend my sincere thanks to our new investors for their support in our vision, and to our employees whose dedication and talent have brought us to this point. The strong interest in our initial public offering reflects the solid foundation and growth potential we have built together. With a clear strategy, proprietary technology, and a robust platform focused on international expansion, we are well placed to embrace the opportunities ahead and deliver long-term sustainable value for our clients and shareholders," CEO Itai Sadeh said.
Sterling fell to USD1.3499 midday Wednesday, from USD1.3536 at the time of the London equities close on Tuesday. The euro fell to USD1.1774 from USD1.1787. Against the yen, the dollar rose to JPY156.80 from JPY155.71.
The yield on the 10-year US Treasury widened to 4.05% on Wednesday afternoon from 4.04% at the time of the London equities close on Tuesday. The 30-year yield widened to 4.70% from 4.69%.
Analysts at ING commented: "Yesterday, US data was supportive for the dollar, with consumer confidence rising to 91 in the February print, while last month’s drop was downsized in the revision. In his State of the Union address, US President Donald Trump focused on the economy and falling inflation, but also reiterated the possibility of conflict with Iran, although he prefers a peaceful solution."
Brent fell to USD70.91 a barrel early Wednesday afternoon from USD71.16 late Tuesday.
In New York, the Dow Jones Industrial Average is called to open 0.1% higher, and the S&P 500 and Nasdaq Composite 0.2% higher.
Nvidia was up 0.8% in pre-market dealings.
"Today, Nvidia will provide clarity on how many chips it sold last quarter and how much it earned," Swissquote analyst Ipek Ozkardeskaya commented.
"Last quarter was a good reminder. Nvidia delivered strong top-line numbers, yet the stock didn't fully ride the wave. Why? Because investors zoomed in on the details — specifically the widening gap between revenue booked and cash actually collected. And that matters in a world of rising leverage and massive AI capex. In this environment, investors don't just want contracts. They want cash in the door."
By Eric Cunha, Alliance News news editor
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Iforex Fin TradHSBC HoldingsSt James's PlaceFresnilloAntofagastaAnglo AmericanDiageo