The FTSE 100 edged higher on Wednesday as gains from Next and mining companies helped push the index into positive territory, although the advance was limited by falls among financial firms with exposure to Asia.
The FTSE 100 closed 0.1% higher, while the FTSE 250 ended the session 0.7% higher as investors reacted to a series of company updates and signs that parts of the UK economy are beginning to improve.
Next shares rose 5.7% after the retailer raised its profit guidance for the 20th time since the start of its 2024 financial year, continuing a remarkable run of upgrades.
The company said full-price sales increased 9.2% in the 13 weeks to August 1, well above its previous forecast of 4.0% growth. International online sales were particularly strong, rising 37% year-on-year, while UK revenue increased 2.8%.
Next said warmer weather, recovering demand in overseas markets and more profitable marketing activity all contributed to the stronger performance, with the retailer once again proving more cautious than its actual trading results.
Miners gain as metals prices rise
Mining stocks added further support to the FTSE 100 as higher metals prices and positive company news lifted the sector.
Endeavour Mining climbed 5.7%, Fresnillo gained 4.5% and Glencore increased 4.1% after the company announced a special dividend, a new share buyback programme and plans for a possible Australian listing.
The gains from miners helped offset weakness among Asia-focused financial companies.
Prudential fell 6.4%, HSBC dropped 4.7% and Standard Chartered declined 1.6% after reports that Chinese authorities had started applying personal income tax rules to returns from offshore insurance policies.
Citigroup said the reports had affected sentiment towards the sector, although it expects the eventual impact on earnings to be limited.
4Imprint jumps after stronger outlook
On the FTSE 250, 4Imprint shares climbed 11% after it said full-year revenue and earnings are expected to come in above current market expectations.
Trading had been encouraging during the first half of 2026, while smaller company B90 Holdings gained 3.5% after reporting strong first-half trading and saying revenue should exceed forecasts.
UK business activity returns to growth
Investors also received some encouraging economic data, with the UK private sector returning to growth at the start of the third quarter.
The S&P Global services PMI rose to 52.1 in July from 48.8 in June, helped by stronger demand for technology services and early signs of improving consumer spending.
The wider composite PMI, which includes manufacturing and services, increased to 52.2 from 49.3, showing business activity expanded after contracting in June.
Wall Street pauses after recent gains
European markets were mixed, with France’s CAC 40 ending slightly higher while Germany’s DAX fell 0.3%.
In the US, markets were more mixed after two sessions of strong buying, with investors assessing results from SpaceX and AMD.
The S&P 500 rose 0.1%, the Dow Jones Industrial Average gained 0.8%, while the Nasdaq Composite slipped slightly as technology shares weakened.
SpaceX shares fell 8% after its first results showed investors remained focused on the company’s heavy AI investment plans and future spending requirements. AMD also declined despite reporting strong results, with investors looking for an even stronger performance from the chipmaker.