Finance
FTSE 100 touches record high, BoE policy in focus
Published by Global Banking and Finance Review
Posted on February 4, 2026
2 min readLast updated: February 4, 2026
Quick Summary
FTSE 100 hits a record high as energy stocks rise. Investors await BoE policy decisions. Beazley surges on Zurich Insurance deal.
FTSE 100 Hits All-Time High as Investors Eye BoE Policy Decisions
FTSE 100 Performance and Market Reactions
Feb 4 (Reuters) - The UK's FTSE 100 touched a record high on Wednesday, helped by gains in energy stocks and insurer Beazley, while investors awaited the Bank of England's monetary policy decision later this week.
Impact of Energy Stocks
The blue-chip FTSE 100 index was up 1.4% at 10,457.84 points at 1155 GMT, while the domestically focused mid-cap FTSE 250 was up 0.6%.
Beazley and Zurich Insurance Deal
Energy stocks climbed 2%, tracking higher crude prices as geopolitical tensions simmered between the United States and Iran. [O/R]
Bank of England's Interest Rate Outlook
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.
Meanwhile, European software names remained in focus following Tuesday's selloff when updated artificial intelligence models raised fresh doubts about whether software firms can defend their business models.
Business information group RELX slid 2.6%, while exchange operator and data provider London Stock Exchange Group dipped 2.4%. The stocks suffered double-digit losses on Tuesday.
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%. Ad firm WPP fell 3.2% to its lowest since 1998.
British interest rates are likely to fall further this year, but the BoE might be vague on Thursday about when or by how much it will cut borrowing costs, as it awaits a clearer picture on inflation. The BoE is expected to keep its benchmark borrowing costs unchanged at 3.75% on Thursday.
Activity in Britain's services sector grew strongly in January and confidence rose, a survey showed on Wednesday, but firms also reported a jump in their prices, a potential concern for the BoE ahead of the policy meeting.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Shinjini Ganguli)
Key Takeaways
- •FTSE 100 reached a record high driven by energy stocks.
- •Investors are focused on upcoming BoE policy decisions.
- •Beazley shares surged due to Zurich Insurance takeover proposal.
- •UK interest rates may remain unchanged amid inflation concerns.
- •Market reactions include declines in software and IT stocks.
Frequently Asked Questions about FTSE 100 touches record high, BoE policy in focus
1What is the FTSE 100?
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, reflecting the performance of the UK’s leading businesses.
2What is monetary policy?
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates to achieve macroeconomic goals such as controlling inflation and stabilizing currency.
3What are energy stocks?
Energy stocks are shares of companies involved in the production and distribution of energy, including oil, gas, and renewable energy sources, often influenced by global energy prices.
4What is the Bank of England?
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, managing monetary policy, and ensuring financial stability.
5What is an interest rate?
An interest rate is the amount charged by lenders to borrowers for the use of money, typically expressed as a percentage of the principal amount.
