AstraZeneca boosts FTSE 100 to new highs; BOE rate decision in focus

Both indexes have been gaining on a weaker pound that slipped against the dollar and was last at $1.248. AstraZeneca advanced 1.6% 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.

The UK's FTSE 100 benchmark stock index scaled new highs on Wednesday, led by AstraZeneca after the drugmaker initiated a worldwide withdrawal of its COVID-19 vaccine, while investors awaited the Bank of England's interest rate verdict.

The blue-chip FTSE 100 edged up 0.4% at 8,344.75 to an all-time peak. The mid-cap FTSE 250 gained 0.2%, set to rise for a third straight session. Both indexes have been gaining on a weaker pound that slipped against the dollar and was last at $1.248.

AstraZeneca advanced 1.6% 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. "Pharmaceuticals as a sector has been in the eye of favour, investors are growing in favour for a number of months now, a lot of thematic investors have been looking at healthcare and pharma as kind of the next big themes," said Gene Salerno, chief investment officer, SG Kleinwort Hambros.

Industrial metal miners, however, fell 1.1% after prices of most base metals slipped on a firmer dollar. All eyes will be on the BOE's interest rate decision on Thursday, where it is widely expected to keep rates unchanged. However, dovish bets have risen recently, with markets pricing in a first rate cut in August.

Informa gained 2.5% 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. OSB Group was the top gainer on the mip-cap index, jumping 4.9% after the specialist mortgage lender said it was on track to meet its annual underlying net interest margin forecast.

J D Wetherspoon was up 3.1%, as the pub group forecast profit to be towards the upper end of market expectations, after it posted higher third-quarter sales.

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