31st Jul 2025 12:15
(Alliance News) - Stock prices in London were higher at midday on Thursday as a busy day of earnings was well-received by investors, as spirits were boosted by a strong performance from some US tech companies overnight.
The FTSE 100 index was up 48.10 points, 0.5%, at 9,185.04. The FTSE 250 was up 226.41 points, 1.0%, at 22,002.99, and the AIM All-Share was flat at 762.65.
The Cboe UK 100 was 0.6% higher at 917.33, the Cboe UK 250 gained 1.2% at 19,321.38, and the Cboe Small Companies was down 0.1% at 17,429.23.
"Stellar results from Microsoft and Meta have fired up investors, quickly shifting the focus from US interest rates potentially staying higher for longer, to an environment where big tech is ruling the roost again," said Russ Mould, investment director at AJ Bell.
In European equities on Thursday, the CAC 40 in Paris was down 0.3%, while the DAX 40 in Frankfurt was up 0.1%.
The pound was down at USD1.3224 at midday on Thursday in London, compared to USD1.3285 at the equities close on Wednesday. The euro stood at USD1.1556, higher against USD1.1479. Against the yen, the dollar was trading at JPY149.94 compared to JPY148.38.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.3%, the S&P 500 index 1.0% higher, and the Nasdaq Composite up 1.4%.
The yield on the 10-year US Treasury narrowed slightly to 4.36% from 4.37%. The yield on the 30-year slimmed to 4.89% from 4.91%.
In London, Shell, one of the FTSE 100's largest constituents, rose 1.3%.
The oil major maintained the pace of its share buyback, and raised its dividend, as second quarter profit fell but still topped expectations.
Adjusted earnings fell 32% to USD4.26 billion in the second quarter of 2025 from USD6.29 billion a year prior, ahead of Vara consensus of USD3.74 billion. Attributable income declined 2.3% to USD3.60 billion from USD3.52 billion.
Shell increased its half-year dividend by 4.1% to 71.6 US cents from 68.8 cents a year ago and announced a USD3.5 billion share buyback, which Chief Executive Wael Sawan pointed out was the 15th consecutive quarter of at least USD3 billion in buybacks.
Also climbing on Thursday was Rolls-Royce, up 9.6%.
The jet engine and power turbine maker raised its outlook for all of 2025, saying a strong first half showed "our multi-year transformation continues to deliver", despite supply chain difficulties and trade tariffs.
Pretax profit multiplied to GBP4.84 billion from GBP1.42 billion a year before. It benefited from a GBP679 million gain on the deconsolidation of Rolls-Royce SMR Ltd, the company's small modular reactor business, which constructs mini nuclear reactors and has brought in outside investors.
Underlying operating profit was GBP1.73 billion, up 51% from GBP1.15 billion. In response, Rolls-Royce raised its guidance for full-year underlying operating profit to between GBP3.1 billion and GBP3.2 billion. This will be up at least 24% from GBP2.5 billion in 2024.
St James's Place gained 7.0%.
The wealth manager reported a "strong operating and financial performance" in the first half of 2025 with funds under management hitting a new high.
It reported IFRS pretax profit of GBP367.9 million in the six months to June 30, up 63% from GBP225.1 million a year ago.
Basic earnings per share increased 73% to 52.0 pence from 30.1p with diluted EPS of 51.6p, up 73% from 29.9p.
Total funds under management rose 9.1% to GBP198.5 billion from GBP181.9 billion with net inflows doubling to GBP3.8 billion from GBP1.9 billion. Gross inflows grew 23% to GBP10.5 billion from GBP8.5 billion.
"With structural tailwinds like shifting demographics and rising demand for advice amid growing tax complexity, SJP looks well placed to capitalise," said Third Bridge analyst Max Harper.
Anglo American was down 5.0% as it slashed its interim dividend as rough diamond business De Beers continued to underperform.
For the first half of 2025, the diversified miner reported pretax profit from continuing operations of USD1.46 billion, multiplied from USD504 million a year earlier. But adjusted pretax profit, before special items, fell 33% to USD1.55 billion from USD2.33 billion.
Anglo American cut its interim dividend to 7 US cents from 42 US cents, owing to negative earnings from discontinued operations and lack of contribution from De Beers.
On the FTSE 250 index, Just Group jumped 68%.
The provider of retirement income products said it has accepted a GBP2.4 billion takeover from Bermuda-based wealth management firm, Brookfield Wealth Solutions.
Under the proposal, shareholders will receive 220p cash for each share held. The price represents a 75% premium to Just's closing price of 126p on Wednesday.
RHI Magnesita was the biggest faller on the FTSE 250 index, down 6.5%.
On Wednesday, it said a "highly competitive" pricing environment is anticipated to continue as it reported a profit dive amid lower revenue.
Revenue in the first half of the year fell 3.0% to EUR1.68 billion from EUR1.73 billion, while pretax profit plunged all the way to EUR14 million from EUR143 million.
On Thursday, RBC cut its price target to 3,000p from 3,200p and maintained a 'sector perform' rating, while Jefferies cut its target to 2,885p from 3,280p and kept a 'hold' rating.
On the AIM market, Cambridge Cognition fell 24%.
The brain health software said revenue was down 23% to GBP4.3 million in the first half of the year from GBP5.6 million.
The adjusted earnings before interest, tax, depreciation and amortisation loss widened to GBP400,000 from GBP100,000, though new sales orders were up to GBP6.9 million from GBP3.3 million. The order book was 12% higher at the end of the period to GBP16.4 million from GBP14.6 million a year ago.
"We are continuing to build the order book from the low point in September 2024. Our refreshed and expanded commercial team is now delivering tangible results and our focus is growing the order book to drive future revenue and cash generation," said Managing Director Rob Baker.
Gold was quoted at USD3,296.40 an ounce early Thursday, higher than USD3,292.75 on Wednesday. Brent oil fell to USD71.99 a barrel from USD72.99.
The unemployment rate in the eurozone remained flat in June, data published by Eurostat showed Thursday.
The unemployment rate was 6.2% in June, the same as in May, which was revised down from 6.3%. It was lower than the rate of 6.4% in June 2024.
House sales jumped by 13% month-on-month in June, according to HM Revenue & Customs, figures.
Across the UK, it estimated that 93,530 home sales took place during the month, which was 1% higher than in June 2024.
The report said the numbers "reflect transactions recovering from the dip seen" following the ending of the temporary stamp duty thresholds. Stamp duty applies in England and Northern Ireland.
Still to come on Thursday are US weekly initial jobless claims, the Chicago PMI and personal consumption expenditures figures. There will also be consumer price index figures from Germany out shortly.
By Michael Hennessey, Alliance News reporter
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ShellRolls-RoyceSt James's PlaceAnglo AmericanJust GroupRHI MagnesitaCambridge Cog