AstraZeneca has become the first company on the London Stock Exchange to be worth £200bn.

The pharmaceuticals giant hit the milestone when its shares rose by 1%. It was already the largest company listed in London, ahead of energy firm Shell (worth £175bn) and bank HSBC (£119bn).

Astra’s shares have risen by over 21% so far this year, and nearly tripled over the last decade.

Danni Hewson head of financial analysis at AJ Bell says: “AstraZeneca’s CEO laid out ambitious plans earlier this year to launch 20 new medicines and double revenue by the end of the decade.

“A decade ago, it had to defend itself against a hostile takeover by US giant Pfizer and go on to prove that had been the right decision.

“Today is a pat on the back for Pascal Soriot but it’s also a boon for London markets which have been fighting to maintain their relevance.”

The decision by housebuilder Bellway to withdraw from a proposed all-share takeover of Crest Nicholson sent shares in Crest shares plummeting by 54.5p, or 20.7%, to 208.75p, while Bellway’s stock rose 116p, or 4.1%, to 2932p.

These were highlights in a relatively subdued session as investors awaited key inflation data for more clues on how the US Federal Reserve and the Bank of England will proceed with their interest rate decisions. Almost three-quarters of the FTSE 100’s constituents made gains, pushing the index 24.98 points higher at 8,235.23.

Inflation held steady at the Bank of England’s target of 2% in May and June but official figures released on Wednesday are expected to show inflation rose to 2.3% in July.

Danni Hewson at AJ Bell, says: “With grocery price inflation up for the first time in more than a year and the impact of increases to the national living wage pushing some businesses to hike prices, a small jump in the headline rate feels inevitable.

“Markets are likely to have priced in the volatility which has been heavily trailed by the Bank of England, despite not being seen as concerning enough to prevent this month’s rate cut.

“With wage growth slowing, expectation of another cut coming our way next month has remained pretty static, but November seems the most likely date for MPC members to make their next move.”