UK stocks surge as Rolls-Royce powers FTSE rally
UK stocks edged higher on Thursday, driven by impressive performances from big corporate names like Rolls-Royce. Markets responded favourably to upbeat earnings and a flurry of trade updates, offering a lift to investor sentiment despite global tariff concerns.
The FTSE 100, packed with global firms, inched up 0.2% by mid-morning, maintaining its monthly upward momentum. Traders continue to price in the growing likelihood of a rate cut from the Bank of England and hold onto hope for smoother UK-U.S. trade ties.
On the other hand, the FTSE 250, more reflective of domestic firms, gained a solid 0.9%.
Rolls-Royce took centre stage. The aerospace giant hit a record high after upgrading its full-year forecast. The company lifted expectations for both operating profit and free cash flow. The stock leapt 9.2%, pushing the broader aerospace and defence sector up 5.7%.
“We’re delivering on our transformation strategy and unlocking long-term value,” said Rolls-Royce’s leadership in their official update.
But it wasn’t all smooth sailing. U.S. President Donald Trump threw a curveball with fresh tariffs targeting copper and goods from nations including Brazil, South Korea, and India. Exemptions for low-value imports? Scrapped. Markets took note.
That news hit the mining sector hard. Copper prices tumbled, dragging industrial miners down with them. Glencore shed 4.3%. Anglo American dropped 4.8%. Antofagasta plunged 5.7%. Rio Tinto lost 4.1%.
Still, there were plenty of bright spots across the board. Rentokil shot up nearly 10%. The pest control firm stuck with its full-year guidance and reported a 3.1% bump in half-year revenue.
St James’s Place rose 7% after revealing its half-year net inflows had doubled. The wealth manager also rolled out a new share buyback programme.
Shell, despite reporting a near 30% fall in Q2 net profit, beat analyst estimates. Its stock nudged up 1.9%.
In a dramatic midcap move, Just Group skyrocketed 67.8%, leading the FTSE 250 after it agreed to a £2.4 billion buyout from Canada’s Brookfield Wealth Solutions.
On the downside, Mondi dipped 5.8% following a near 17% drop in half-year pretax profit.
London Stock Exchange Group also slid 3.7%, despite posting stronger-than-expected results and confirming a new share buyback for the second half of the year.
All eyes now turn to next week’s Bank of England decision. A fifth interest rate cut since last August is widely anticipated — and could give UK equities another leg up.
