Energy strength powers FTSE 100 higher
The FTSE 100 edged up 0.4% to approach record territory as energy and mining stocks drove broad market gains. BP and Shell both advanced more than 2%, helped by a near 4% jump in Brent crude to around $65 a barrel. The rally followed fresh US sanctions on major Russian producers, lifting energy shares across Europe.
Government bonds were steady after Wednesday’s inflation-driven rally, with gilt yields rising only marginally. Sterling held near $1.33 against the dollar as investors weighed the outlook for interest rates and the forthcoming UK Budget.
LSE Group leads corporate winners
London Stock Exchange Group delivered one of the day’s standout updates, with shares jumping almost 9% after the company raised its margin guidance, launched a £1 billion buyback and announced a partnership in its Post Trade Solutions arm.
Analysts said the results “ticked all the boxes”, with stronger profitability and a deal to expand its SwapClear business reinforcing confidence in management’s outlook. The move adds further momentum to the company’s transformation into a global data and trading infrastructure leader.
Rentokil rebounds on North American recovery
Rentokil shares soared up to 18% after the pest control firm reported improved performance in its key US market. Investors welcomed signs that the integration of Terminix is progressing and that organic growth has accelerated since the first half of the year.
Morgan Stanley analysts said the update showed “clear progress” after a challenging 12 months, prompting a sharp re-rating of the shares.
Unilever beats expectations with broad-based growth
Unilever’s quarterly sales came in ahead of forecasts, led by strong demand for its “Power Brands” such as Dove, Knorr and Hellmann’s. The consumer goods giant reaffirmed its full-year guidance and confirmed plans to complete the spin-off of its ice cream business later this year.
Chief executive Fernando Fernandez highlighted a return to growth in key emerging markets including China and Indonesia, while developed markets continued to perform well thanks to product innovation.
Lloyds trims outlook amid motor finance hit
Lloyds Banking Group cut its profitability target after setting aside £1.95 billion to cover potential redress for UK motor finance customers. The lender now expects a 12% return on tangible equity for 2025, down from 13.5% previously.
The bank’s core business remains solid, with resilient customer trends and stable asset quality. Its structural hedge continued to offset pressure from a more cautious lending environment.
Luxury sector lifted by Kering results
Burberry shares rose more than 5% after upbeat results from French rival Kering boosted sentiment across the luxury sector. Kering’s smaller-than-expected sales decline and improving performance at Gucci were taken as encouraging signs for Burberry’s own turnaround efforts.
Luxury names have broadly outperformed in recent weeks, supported by a surprise return to growth at LVMH and stabilising demand from Chinese consumers.
Bloomsbury Publishing shines on strong outlook
Bloomsbury Publishing jumped 10% after forecasting annual profit ahead of expectations, driven by a robust performance across both consumer and academic divisions. Popular titles such as Want by Gillian Anderson and perennial bestsellers including Harry Potter helped lift results.
The publisher said its value-led approach continues to resonate with readers despite headwinds in the UK and US book markets.
Budget uncertainty weighs on domestic stocks
St James’s Place and Foxtons fell over 3% after both warned that the upcoming November Budget could slow fourth-quarter activity. The wealth manager flagged a potential cooling in client flows after a strong third quarter, while Foxtons cited weaker home sales as households await fiscal clarity.
Analysts said the updates underscored how sensitive UK consumer and property-linked firms remain to domestic policy shifts and confidence trends.
Commodities steady as gold pauses slide
Gold prices were little changed after a sharp two-day pullback, while mining stocks stabilised following earlier weakness. Fresnillo and Endeavour edged higher after steep losses earlier in the week, while copper miner Antofagasta slipped slightly after forecasting output at the lower end of its guidance range.
Broader sentiment across the resources sector remained firm, supported by optimism over global growth and energy demand.
Outlook: energy resilience offsets local caution
The FTSE 100 continues to benefit from strength in global sectors such as energy, mining and data services, even as domestically focused shares tread more carefully ahead of the Budget. With gilts and the pound steady, attention remains on earnings quality and dividend resilience.
The index’s performance contrasts with more muted trading across continental Europe, highlighting sustained international appetite for UK large caps in a supportive commodity environment.