The UK’s primary stock indexes experienced gains on Thursday, with midcap stocks closing at their highest point in 10 months. Investors analyzed corporate earnings reports while considering the potential trajectory of interest rates following data that suggested a slowdown in consumer spending. The FTSE 100 index rose by 0.2%, while the FTSE 250 index climbed by 0.8%. A stronger pound, reaching its highest level since 2021, impacted companies earning in dollars, such as Unilever and HSBC. Shell and BP saw marginal increases after Shell denied rumors of acquisition talks. Global attention was on U.S. interest rate policies after reports indicated President Donald Trump might select the next Federal Reserve chair early, sparking rate cut expectations and weakening the dollar. Despite weak retail sales data in the UK, the pound strengthened, and traders anticipate a 64% likelihood of a Bank of England rate cut in August. Domestically focused firms have remained relatively unaffected by trade uncertainties, with the UK securing a trade deal with the U.S. Among individual stocks, Inchcape gained 5.9% due to maintaining its fiscal-year outlook, while Moonpig dropped 9.2% after forecasting slower growth and announcing its CEO’s departure. Next 15 Group plummeted 28% after issuing a profit warning for 2026.
— news from Reuters
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UK midcaps close at 10-month high with focus on earnings, rate path
Summary n nCompanies n nFTSE 100 rises 0.2%, FTSE 250 gains 0.8% n nShell denies report on bid for BP n nMoonpig falls after forecasting slower growth n nInchcape rises on maintaining full-year outlook n nJune 26 (Reuters) – The UK’s main stock indexes rose on Thursday, with midcaps closing at a 10-month high as investors digested corporate results and considered the outlook for interest rates after data indicated softening consumer spending. n nThe internationally-focused FTSE 100 (.FTSE), opens new tab ended up 0.2%, with a jump in the pound to its highest since 2021 weighing on dollar earners such as Unilever (ULVR.L), opens new tab and HSBC (HSBA.L), opens new tab. n nSign up here. n nTraders also scrutinised Shell’s (SHEL.L), opens new tab latest comments after the oil giant denied reports of ongoing talks to acquire rival BP (BP.L), opens new tab. Shares in both companies traded marginally higher. n nFocus globally was on the path of U.S. interest rates after a report said U.S. President Donald Trump was planning to choose the next Federal Reserve chief early, fuelling new bets on rate cuts and sending the dollar tumbling. n nThe pound gained even as a survey showed British retail sales slumped this month and expectations within the industry for July also deteriorated. n nRecent data reports have signalled a softening domestic economy, and traders see a 64% chance of a rate cut from the Bank of England in August. n nThe FTSE midcap index <.FTMC> climbed 0.8% to its highest close since August. n nAnalysts noted that domestically focused companies have been relatively insulated from trade uncertainties, while the UK remains among the few countries to have signed a trade deal with the United States. n nAmong companies that reported, Inchcape (INCH.L), opens new tab gained 5.9% after the car distributor maintained fiscal-year outlook through cost-cutting measures that offset U.S. tariffs and increased competition. n nMoonpig (MOONM.L), opens new tab slumped 9.2% to touch a more than two-month low after the greeting card retailer forecast slower earnings growth and announced the departure of its CEO. n nNext 15 Group (NFGN.L), opens new tab slumped 28% after the consultancy and marketing services provider warned full-year 2026 profit would significantly miss market expectations. n nReporting by Twesha Dikshit and Sruthi Shankar in Bengaluru; Editing by Tasim Zahid and Ed Osmond