FTSE 100 scales record peak for the third straight session

(Reuters) -London's exporter-heavy FTSE 100 index closed at a record high on Wednesday, lifted by gains in AstraZeneca and insurer Prudential, with a weak pound providing an additional boost.

The benchmark FTSE 100 gained 0.3%, continuing a rising streak for a third straight session.

Global risk sentiment took a hit as hotter-than-expected U.S. inflation data fuelled concerns that the Federal Reserve would not cut interest rates anytime soon. [.N]

The midcap FTSE 250 lost 0.2%.

Shares in drugmaker AstraZeneca rose 1.5% after brokerage Morgan Stanley initiated coverage with 'overweight', while shares in its Indian subsidiary climbed on a quarterly profit jump, driven by strong demand for oncology products.

Prudential rose 5.8% after the British insurer said it was evaluating the potential listing of India's ICICI Prudential Asset Management, involving a partial divestment of its shares.

The housebuilding sector rose 1.4%, with Barratt Redrow climbing 5.3% to its highest since July 2023 after the company issued an upbeat annual profit forecast and announced a share buyback.

A lower interest rate environment boosts demand for new homes by reducing borrowing costs.

The oil and gas sector gained 0.5% after Shell said global demand for liquefied natural gas will see a robust rise in the next few years. [O/R]

On the flip side, industrial metal miners dipped 0.4% as aluminium prices lost ground. [MET/L]

Among other stocks, London-listed shares of Georgia's TBC Bank jumped 8.5% after the bank hiked its dividend payout.

On the macro front, investors are awaiting the UK's GDP estimates for December, the preliminary figures for the fourth quarter, and industrial and manufacturing output data for December, all of which will shed light on Britain's economic landscape on Thursday.

Bank of England policymaker Megan Greene said it was right to take a cautious and gradual approach to cutting interest rates, highlighting the risk that inflation pressures will remain persistent.

The BoE cut interest rates by a quarter-point last week and halved its 2025 growth outlook in the face of global economic uncertainty.

(Reporting by Sanchayaita Roy and Pranav Kashyap in Bangalore; Editing by Mrigank Dhaniwala)