London stocks opened mostly higher on Wednesday, with the FTSE 100 rising 0.94% to 10,412.13 in early trade and touching a new intraday record of 10,383.43. The benchmark extended gains after Beazley shares surged on news of a potential £8.0 billion takeover by Zurich Insurance. In contrast, the FTSE 250 slipped 0.1% to 23,269.25, while the AIM All-Share gained 0.4%.
Elsewhere across UK markets, the Cboe UK 100 climbed 0.5%, the Cboe UK 250 edged up 0.1%, and the Cboe Small Companies index added 0.1%. What drove the divergence between large-cap strength and broader market caution?
Beazley Surges on Zurich Takeover Offer
Beazley led the FTSE 100 after its shares jumped 8.7%. Zurich Insurance tabled a cash offer of 1,310 pence per share, with a permitted dividend lifting the total value to 1,335p. That price implied a premium of more than 60% to Beazley’s market value before takeover talks emerged in January.
Source: Zurich Insurance via X
Both firms said the deal would create a global specialty insurance platform with roughly £15 billion in gross written premiums. Beazley’s board signaled its intention to recommend the offer if Zurich confirms a firm bid. Zurich has until February 16 to make a binding announcement.
AI Concerns Weigh on Software Stocks
While insurers lifted the index, technology-linked stocks faced renewed pressure. London Stock Exchange Group fell 5.8%, Sage Group declined 3.8%, and Relx slipped 2.8%. Investors reacted to fresh concerns about artificial intelligence disrupting data, research, and analytics businesses.
Market participants pointed to the rollout of a new AI tool by Anthropic, backed by Amazon and Google, which triggered fears of accelerated competition in legal, financial, and corporate research services. As a result, confidence across software and data-driven stocks weakened further. The pullback followed similar declines on Wall Street, where the Nasdaq closed 1.4% lower overnight.
European and Global Markets Show Mixed Signals
Across Europe, markets painted a mixed picture. Paris’s CAC 40 rose 0.5%, while Frankfurt’s DAX 40 eased 0.1%. In currency markets, sterling strengthened to $1.3725, while the euro edged higher to $1.1828. The dollar gained against the yen, trading near JPY156.47.
In Asia, Tokyo’s Nikkei 225 fell 0.8%, while Chinese equities advanced. The Shanghai Composite rose 0.9%, and Hong Kong’s Hang Seng Index posted modest gains. Meanwhile, Australia’s S&P/ASX 200 ended the session up 0.8%.
Earnings and Corporate Updates in Focus
Beyond Beazley, several UK companies released updates. DCC shares climbed 5.0% after reporting strong third-quarter adjusted operating profit growth and reaffirming expectations for solid full-year performance. GSK added 1.2% after posting higher revenue and more than doubling pretax profit for 2025, while also lifting its dividend outlook.
By contrast, Watches of Switzerland Group fell 3.8% despite raising its sales growth forecast. The retailer trimmed its margin guidance, which tempered investor enthusiasm following strong holiday trading.
Commodities, Bonds, and Data Ahead
Commodity prices provided some support to risk sentiment. Gold traded above $5,077 an ounce, while Brent crude hovered near $67 a barrel. In bond markets, US Treasury yields edged lower, with the 10-year yield slipping to 4.27%.
Looking ahead, investors awaited UK composite PMI data, eurozone producer prices, and US ADP payroll figures. With takeover activity boosting select stocks and AI concerns clouding others, London markets entered the session with momentum but little complacency.
Source: https://coinpaper.com/14278/ftse-100-forecast-beazley-stock-soars-8-7-on-zurich-s-8-b-bid
