23rd Oct 2025 12:14
(Alliance News) - Stock prices in London were higher at midday on Thursday, lifted by a rally in oil majors after the US and EU imposed fresh sanctions on Russia's energy sector, sending crude prices sharply higher.
The FTSE 100 index was up 54.54 points, 0.6%, at 9,568.63. The FTSE 250 was up 11.53 points, 0.1%, at 22,241.32, and the AIM All-Share was up 4.20 points, 0.6%, at 772.23.
The Cboe UK 100 was up 0.4% at 956.08, the Cboe UK 250 was up 0.2% at 19,400.38, and the Cboe Small Companies was up 0.1% at 17,507.72.
Oil majors Shell and BP climbed 3.4% and 3.6%, respectively, as Brent crude surged.
The benchmark traded at USD65.05 a barrel early Thursday, up from USD62.61 late Wednesday. The rise followed coordinated US-EU sanctions aimed at cutting off Russian oil revenues.
Smaller energy producers tracked the move higher, with Tullow Oil jumping 11% and Harbour Energy up 4.7%.
US President Donald Trump said the sanctions would target Rosneft and Lukoil, Russia's two largest oil companies, after talks with Vladimir Putin "went nowhere." He described the measures as "tremendous," but said he hoped they would be short-lived, adding: "We hope that the war will be settled."
Speaking alongside NATO Secretary General Mark Rutte, Trump said his patience had "snapped" after the collapse of plans for a peace summit in Budapest. Rutte, often referred to as "the Trump whisperer," said sustained pressure should "bring Putin to the table" to negotiate a ceasefire.
The EU, meanwhile, unveiled its 19th sanctions package since Russia's 2022 invasion of Ukraine, tightening restrictions on Moscow's oil and gas revenues.
In Europe, the CAC 40 in Paris was up 0.6%, while Frankfurt's DAX 40 slipped 0.3%.
In Paris, Airbus rose 0.5% and Thales gained 1.5%, while Leonardo advanced 1.9% in Milan after the three companies said they will merge their space technology operations into a joint venture employing 25,000 people and generating annual revenue of around GBP6.5 billion.
Airbus will hold a 35% stake, with Leonardo and Thales owning 32.5% each. The new entity will operate under joint control with "a balanced governance structure among shareholders."
The pound traded at USD1.3350 at midday Thursday in London, down slightly from USD1.3366 at the close on Wednesday. The euro slipped to USD1.1592 from USD1.1599, while the dollar strengthened to JPY152.61 from JPY151.78.
Back in London, Unilever rose 1.6% after reaffirming its annual guidance and forecasting faster growth in the second half of the year despite challenging market conditions.
The consumer goods company said it "continued to outperform in developed markets" during the third quarter as it prepares to spin off its ice cream division.
Quarterly revenue fell 3.5% year-on-year to EUR14.72 billion from EUR15.25 billion, but underlying sales rose 3.9%, driven by 1.5% volume growth and a 2.4% price increase. The figure beat the company-compiled consensus for 3.7% growth.
In the FTSE 250, WH Smith fell 3.9% after Barclays downgraded the stock to 'equal weight' from 'overweight' and slashed its price target to 675 pence from 1,310p.
Bloomsbury Publishing rose 4.3% after reporting a solid first half and raising its profit outlook. Pretax profit slipped to GBP24.0 million from GBP26.6 million a year earlier, but the publisher said it remains "confident" in meeting full-year expectations.
Revenue declined to GBP159.5 million from GBP179.8 million, and the interim dividend was lifted 5% to 4.08 pence per share.
Among smaller caps, Foxtons fell 4.3% after warning of a slowdown in the housing market ahead of the autumn budget.
The London-based estate agency said third-quarter home sales revenue dropped 7% to GBP12.5 million from GBP13.5 million a year earlier, with the company noting deals had been brought forward earlier in the year.
It cautioned that fourth-quarter sales may undershoot expectations amid "limited interest rate reductions and uncertainty around the delayed Budget."
On Wall Street, stocks were set for a mixed open. The Dow Jones Industrial Average was seen down 0.1%, while the S&P 500 and Nasdaq Composite were each expected to rise 0.1%.
Tesla shares will be in focus, so far falling 3.3% in premarket trade, following quarterly results showing strong revenue and cash flow but higher costs.
Adjusted earnings per share fell 31% to USD0.50 from USD0.72, missing consensus forecasts for USD0.54. Adjusted net income dropped 29% to USD1.77 billion from USD2.51 billion.
The yield on the US 10-year Treasury was 3.99%, up from 3.96% late Wednesday, while the 30-year yield widened to 4.58% from 4.55%.
In geopolitical news, China confirmed it will hold the next round of trade talks with the US in Malaysia from October 24 to 27. Vice Premier He Lifeng will lead Beijing's delegation amid efforts to ease tensions and avert a renewed tariff escalation.
The announcement followed US threats of 100% tariffs on Chinese imports after Beijing introduced sweeping controls on rare earth exports. Both sides have also imposed reciprocal arrival fees on ships, escalating their ongoing trade dispute.
Trump said he still hopes to strike a "good deal" with China, though he has warned that his planned meeting with President Xi Jinping at the upcoming APEC summit in South Korea may not take place.
Meanwhile, Canadian Prime Minister Mark Carney said his government aims to double non-US exports within a decade to reduce dependence on American trade amid tariff tensions. He warned that industries such as autos, steel, and lumber face "serious threats" from US protectionism.
Gold rose to USD4,111.40 an ounce at midday Thursday from USD4,028.64 late Wednesday.
Still to come on Thursday's economic calendar are Canadian retail sales and eurozone consumer confidence data.
By Eva Castanedo, Alliance News reporter
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