The FTSE 100 rose on Thursday morning, lifted by well-received earnings from Shell, Rolls-Royce and Rentokil, while a high-premium takeover of Just Group sent its shares soaring.
The FTSE 100 opened up 0.5% at 9,181.40. The FTSE 250 gained 0.8% to 21,944.77, while the AIM All-Share edged 0.2% lower to 761.60.
Equity markets in Europe were also firmer, with Paris and Frankfurt up 0.3% and 0.6% respectively. Asian markets were mixed, Tokyo gained 1%, while Hong Kong dropped 1.5%.
US stocks closed mixed on Wednesday following the Federal Reserve’s decision to leave interest rates unchanged for a fifth consecutive meeting.
The Dow Jones Industrial Average fell 0.4%, the S&P 500 slipped 0.1%, while the Nasdaq edged up 0.2%.
The Fed held its target range at 4.25% to 4.50% in a split vote. Two FOMC members, Christopher Waller and Michelle Bowman, dissented, favouring a 25-basis-point cut.
In its statement, the Fed said economic activity had moderated in the first half of the year and that uncertainty remains elevated, suggesting a cautious stance amid ongoing tariff concerns.
Shell climbed 1.7% after announcing a dividend hike and a fresh $3.5 billion share buyback, despite a 23% fall in first-half profit to $8.38 billion. Revenue dropped to $136.6 billion from $149.8 billion, hit by weaker gas and liquids prices. EPS fell 18%. Still, the dividend was lifted to 71.6 cents from 68.8, with the buyback expected to complete by Q3 results.
Rolls-Royce jumped 9.3% after raising 2025 profit guidance. Underlying operating profit is now expected between £3.1 billion and £3.2 billion, up from previous estimates of £2.7–£2.9 billion. First-half revenue rose to £9.49 billion, while pretax profit surged to £4.84 billion from £1.42 billion. EPS quadrupled to 52.38p. CEO Tufan Erginbilgic said its transformation strategy continues to pay off.
Rentokil Initial gained 9.5% after confirming steady trading. Revenue rose 3% to $3.36 billion, though profit fell 27% to $216 million. The firm highlighted stronger momentum in North America, with Q2 organic growth improving to 1.4%.
Mondi fell 6.1% despite revenue rising to €3.91 billion. Profit fell sharply to €247 million from €2.96 billion a year ago. The packaging group kept its interim dividend flat and warned of second-order risks from tariffs.
FTSE 250 firm Just Group surged 68% after agreeing a £2.4 billion takeover by Brookfield Wealth Solutions. Shareholders will receive 220p per share, a 75% premium. Brookfield plans to merge Just with its UK insurance operations under the Just brand.
Pets At Home slipped 2.9% after lowering profit guidance, citing sluggish market growth. Revenue declined 1.9% to £435 million, while consumer revenue rose just 0.4%. It now expects annual underlying pretax profit of £110–120 million, down from earlier forecasts.
Nativo Resources surged 54% after bondholders approved a debt restructuring plan. The miner said it now has the financial flexibility to advance gold production in Peru, with gold prices above $3,000.