FTSE 100 hits document excessive and surges previous 10,400 factors regardless of AI woes

The FTSE has reached a new high, pushing past the 10,400 points barrier despite a continued sell-off in software stocks. 

The blue-chip index is up 1.44 per cent to 10,460 points. It is trading nearly 5.1 per cent higher in the year-to-date.

Software stocks Relx and Sage extended their losses after Tuesday’s dramatic selloff following the launch of Anthropic’s new AI tool for the legal sector.

However, the FTSE benefited from gains in other sectors by Wednesday afternoon.

Beazley led the biggest risers, up 8.53 per cent, after the insurer agreed takeover terms with Swiss insurance giant Zurich. It also helped to lift insurer Hiscox 3.8 per cent.

Also climbing was betting giant Entain after it said that BetMGM, its joint venture with MGM Resorts, beat expectations last year.

Beazley led the FTSE 100’s biggest risers after agreeing to Zurich’s £8bn takeover bid

Mining stocks have taken a hit this week as gold and metal prices sank, but Endeavour Mining and Fresnillo both gained around 3 per cent as the precious metals looked to be on a more stable footing.

Gold is now trading over $5,000 after hitting $4,500 earlier this week, while silver is back up to $94. after days of volatility.

The metals have been buoyed over the past year as investors flock to ‘safer’ assets in the face of mounting geopolitical tensions.

Elsewhere, the FTSE 250 is also nearing a four-year high as fresh UK services PMI showed output growth rebounded to a five-month high.

Chris Beauchamp, chief market analyst at IG told This is Money: ‘Despite all of the gloom around the UK economy, the data has actually begun to show a more positive trend, backed up by renewed inflows.

‘Much of this is down to global funds looking for alternatives to expensive US stocks, which is the same dynamic at work in the FTSE 100, but with the added excitement of the drumbeat of regular bids for FTSE 250 firms viewed as undervalued by international competitors.

‘Earnings continue to recover, though the index has continued to lag over the past two years thanks to the prevalence of strong performing banks in the FTSE 100, and of course the stellar gains for defence.’

European stocks were mixed as eurozone inflation fell to 1.7 per cent in January, below the central bank’s 2 per cent target.