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FTSE 100 up 1.18%, FTSE 250 up 0.5%

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HSBC ( HSBC ) up 7.9% after lifting target for return on tangible

equity

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Aston Martin to cut up to 20% jobs

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Miners rise as gold, copper jump

(Updates to market close)

By Tharuniyaa Lakshmi

Feb 25 (Reuters) - Britain's ​FTSE 100 closed at a fresh

peak on ‌Wednesday after HSBC ( HSBC ) lifted a key earnings target and

miners hit new highs, as fading worries over AI's ⁠disruption to

traditional businesses lifted global sentiment.

The blue-chip FTSE 100 index closed up ⁠1.18% at

10,806.41 points after being largely unchanged over the past ‌two

sessions, while the ‌domestically focused mid-cap FTSE 250

gained 0.5%.

Global risk appetite improved after U.S.-based AI startup

Anthropic partnered on Wednesday ​with several companies to

develop new plug-ins, signalling ‌that traditional businesses are

adapting to AI advances rather than facing immediate disruption.

HSBC ( HSBC ) climbed 7.9% to a record high after the bank

lifted ​its target for a key profitability ​metric after ‌annual

profits beat expectations.

"The bank has slimmed down to focus on fewer regions, and to

pay greater attention to wealthier individuals. This strategy

appears to be ⁠working as it reported a strong performance from

its wealth division," said ⁠Russ Mould, investment director at AJ

Bell.

Precious metal miners rose 3.8% to an

all-time high and industrial metal miners gained

3.3%, their highest level since 2008, as copper and gold prices

climbed on a softer dollar . Miners have been

among the FTSE 100's ⁠top drivers ‌over the past year following an

unprecedented rally in commodity ‌prices.

Finance minister Rachel Reeves will present new economic

forecasts in Tuesday's budget update, aiming ⁠for a quieter

affair, in contrast to the three more momentous fiscal events

she has overseen since taking office.

Among other shares, spirits maker Diageo ( DEO ) fell 12.7%

to the bottom of the benchmark index after new CEO Dave Lewis

cut the annual forecast and dividend.

Hiscox ( HCXLF ) rose 5.2% after the insurer announced a $300

million share buyback plan and reported a 5.9% rise in ​annual

insurance contract written premium.

Aston Martin fell 2.9% after the luxury

carmaker said it will cut its workforce by up to 20%, as it

strives to recover from the ​impact of U.S. import tariffs and

weak ‌demand in China.