LONDON – The UK’s FTSE 100 climbed to a record high on Wednesday, driven by gains in mining and healthcare stocks, while education company Pearson (PSON.L) slumped after losing a major contract in New Jersey.

The blue-chip FTSE 100 index rose 0.3% as of 1010 GMT, following a subdued session the previous day. In contrast, the domestically focused FTSE 250 mid-cap index fell 0.37%, reflecting uneven investor sentiment across sectors.

Miners and Precious Metals Lead Gains

The precious metals and miners index surged 1.9%, fueled by a 1% jump in gold prices to $4,632.03 per ounce. Softer U.S. inflation data reinforced expectations of potential interest rate cuts by the Federal Reserve, while geopolitical uncertainties boosted demand for safe-haven assets.

Kathleen Brooks, research director at XTB, commented:

“A more interventionist Donald Trump pressuring the Fed, corporate mandates, and his Greenland plans are driving flows into the relative safety of gold.”

London-listed miners also advanced, with Antofagasta (ANTO.L), Rio Tinto (RIO.L), and Glencore (GLEN.L) gaining between 1.1% and 2.1%, bolstered by higher copper prices and strong industrial demand.

Healthcare Stocks Benefit from AI-Driven Expansion

The pharmaceutical index rose 1.6%, led by AstraZeneca (AZN.L), whose shares jumped 2.3% after the company announced the acquisition of Boston-based Modella AI. Analysts note that the deal reflects the industry’s increasing reliance on artificial intelligence to accelerate drug discovery and development pipelines.

Pearson Falls After Losing Contract

Offsetting gains in other sectors, the media and education index dropped 2.8%, with Pearson suffering its worst day on the FTSE 100, down 8%. The decline followed news that Pearson’s Assessment & Qualifications division lost a major contract with New Jersey, posing a headwind for the first half of 2026.

BP Reports Impairments

Energy giant BP (BP.L) fell 1.3% after announcing $4–5 billion in fourth-quarter impairments, primarily linked to its energy transition businesses, which weighed on investor sentiment in the sector.

Bank of England Signals Falling Interest Rates

Adding to the bullish sentiment in equities, Bank of England policymaker Alan Taylor indicated that UK interest rates are likely to continue falling, as inflation is projected to reach the 2% target by mid-2026, sooner than previously forecast. Lower interest rates are generally supportive of equities, particularly mining and healthcare sectors, which are sensitive to borrowing costs.

Broader Market Context

The FTSE 100’s gains align with a broader global rally in equities, with precious metals like gold and silver reaching record highs, and industrial metals such as copper surging due to geopolitical risks and supply pressures. Investors remain focused on central bank policy, U.S. corporate earnings, and geopolitical developments, which continue to influence market flows.