The FTSE 100 surged to a record high on Wednesday, climbing 0.7% to 10,760.70 as investors cheered strong earnings from HSBC and other major British companies. The index's gains came despite earlier session volatility sparked by geopolitical uncertainty and AI-related market jitters. The British pound strengthened 0.2% against the dollar to 1.3520.

HSBC led the charge with full-year pretax profit of $29.91 billion, exceeding analyst expectations of $28.86 billion. While down from $32.38 billion in 2024, the Asia-focused lender's performance was boosted by $36.62 billion in pretax profit excluding notable items. The bank also set a 2026 net interest income target above consensus, sending its shares up more than 2% in Hong Kong trading.

Other notable movers included St. James's Place, which jumped 4% after reporting 3% growth in underlying cash results to £462.3 million and record funds under management of £220.0 billion. Conversely, Reckitt Benckiser shares fell 4% after missing sales growth estimates, while Rolls-Royce plunged 6% on weak earnings. The broader market rally extended to continental Europe, with France's CAC 40 rising 0.3% and Germany's DAX gaining 0.07%.