FTSE 100 hits record high after upbeat corporate updates

The blue-chip FTSE 100 closed the session 0.5% higher, hitting a record high of 20,491.99 points

The UK's FTSE 100 benchmark stock index scaled new peaks on Wednesday following upbeat corporate updates while investors awaited the Bank of England's interest rate decision.

The blue-chip FTSE 100 closed the session 0.5% higher, hitting a record high of 20,491.99 points.

The index was also supported by a weaker pound , which slid against the dollar as expectations of a dovish hold from the Bank of England at Thursday's monetary policy meeting weighed on the currency.

Money markets are fully pricing in a 25 bps rate cut in August, and attach a 40% probability of such a move in June as dovish bets have risen recently after a slowdown in British inflation.

April’s inflation data, released later in the month, is likely to prove vital in any decision. A better than expected number could see July come into play, but if inflation proves stickier than expected there is no rush to cut, said Jessica Shuman, senior investment specialist at Insight Investment.

Meanwhile, AstraZeneca shares gained 1.2% after the drugmaker said it initiated a worldwide withdrawal of its COVID-19 vaccine due to a "surplus of available updated vaccines" since the pandemic.

Informa added 2.3% after the events organiser forecast annual revenue and adjusted operating profit at the upper end of its previous outlook range, and increased its share buyback programme.

The mid-cap FTSE 250 index also advanced 0.4% to stay near 15-month peaks.

John Wood Group rejected a potential £1.42 billion ($1.77 billion) buyout proposal from Dubai-based company Sidara, saying it "undervalued Wood and its future prospects". The oilfield services and engineering firm's shares jumped 16.9% to the top of the mid-cap index.

OSB Group added 5.3% after the specialist mortgage lender said it was on track to meet its annual underlying net interest margin forecast.