Stock prices in London were steady on Thursday morning amid a slew of earnings and trading updates from large-cap and smaller-cap companies, just ahead of UK construction data and before the Bank of England announces its interest rate decision at noon.
The FTSE 100 index opened down 4.21 points at 9,772.87. The FTSE 250 was up 17.75 points, 0.1%, at 22,112.13, and the AIM All-Share was up 3.52 points, 0.5%, at 759.74.
The Cboe UK 100 was down 0.1% at 974.24, the Cboe UK 250 was slightly lower at 19,151.41, and the Cboe Small Companies was up 0.3% at 18,024.94.
In European equities on Thursday, the CAC 40 in Paris was down 0.6%, while the DAX 40 in Frankfurt was 0.4% lower.
The Bank of England is expected to leave rates unchanged at 1200 GMT, though analyst opinion is divided and onlookers believe the decision could be on a knife-edge.
A rate hold on Thursday would keep bank rate at 4.00%. It would represent a second successive hold and would be only the first time this year that Threadneedle Street goes two meetings in a row without cutting. So far this year, it has reduced bank rate in February, May and August, so every other meeting.
Thursday’s decision at midday will be accompanied by the latest monetary policy report of economic projections, and a press conference with Governor Andrew Bailey follows at 1230 GMT.
Chancellor Rachel Reeves is set to spare the UK‘s banks from a punitive budget tax raid, after making it clear to colleagues she wants the sector to remain competitive and able to support the country’s growth, according to the Financial Times.
Late Wednesday, the FT said while Reeves’ allies stress final tax decisions have not been taken, the chancellor and others involved in budget preparations say banks in the UK already pay high levels of tax by international standards.
‘There’s obviously a list of possible tax measures, but raising taxes on banks is a long way down that list,’ a source told the FT. Another person close to the process said: ‘She is not minded to do this.’
A third person said: ‘Banks are already paying a lot of tax. We aren’t going to do it,’ the FT reported.
Shares in NatWest were up 2.5%, while Lloyds climbed 2.5%, Standard Chartered rose 1.6% and Barclays was 1.4% higher.
Sterling was at $1.3077 on Thursday morning, up from $1.3037 at the London equities close on Wednesday. The euro was higher at $1.1514 from $1.1476. Against the yen, the dollar was lower at JP¥153.61 versus JP¥154.23.
In Asia on Thursday, the Nikkei 225 in Tokyo was up 1.3%. In China, the Shanghai Composite was 1.0% higher, while the Hang Seng Index in Hong Kong gained 2.1%. The S&P/ASX 200 in Sydney was up 0.3%.
In the US on Wednesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.5%, while the S&P 500 gained 0.4% and the Nasdaq Composite advanced 0.7%.
The yield on the 10-year US Treasury narrowed to 4.13% on Thursday morning from 4.15% on Wednesday. The yield on the 30-year was unchanged at 4.72%.
In London, IMI led the way on the FTSE 100 and advanced 6.7%.
In a trading update, the Birmingham, England-based engineering firm said revenue in the third quarter was 11% higher than last year, and was up 12% on an organic basis. Organic revenue was 5% higher in the year-to-date.
The company backed its full-year guidance as it said it expects the fourth consecutive year of mid-single digit organic revenue growth in 2025. It continues to expect that full-year adjusted basis earnings per share will be between 129 pence and 136p.
‘Our strong balance sheet and cash generation give us the flexibility to invest in organic growth, pursue bolt-on acquisitions, and return capital to shareholders,’ said Chief Executive Roy Twite.
AstraZeneca shares were up 1.0% as it said a strong performance in 2025 so far, with third quarter sales ahead of forecast, leaves it well-placed to sustain growth through 2026.
The Cambridge-based pharmaceuticals firm said pretax profit leapt 77% to $3.24 billion in the third quarter from $1.83 billion the year prior, or by 70% at constant currency.
Earnings per share increased 77% to $1.64 from $0.92, with core EPS of $2.38, up 14% from $2.08 a year ago, or 12% at constant currency.
Revenue increased 12% to $15.19 billion from $13.57 billion, or by 10% at constant currency, beating Visible Alpha consensus of $14.80 billion.
Chief Executive Pascal Soriot said: ‘The strong underlying momentum across our business through the first nine months of the year sets us up well to sustain growth through 2026 and has us on track to deliver our 2030 ambition.’
Hikma Pharmaceuticals was the biggest faller on the blue-chip index and sank 10%.
The London-based drugmaker said it continues to expect revenue to grow between 4% and 6% in 2025. The firm narrowed its core operating profit guidance range to between $730 million and $750 million, down from between $730 million and $770 million.
The firm now expects its three-year revenue compound annual growth rate to 2027 of between 6% and 8% to be at the lower end of the range.
The company also revised its medium-term profit expectations, as it now expects core operating profit to grow between 5% and 7%, down from the previous guidance range between 7% and 9%.
It said the reduction in its expectations for Injectables operating profit will be partially offset by improving profitability in Hikma Rx.
‘While we have adjusted our medium-term expectations, I am confident that these investments will enable us to deliver our revised growth targets,’ said CEO Riad Mishlawi.
On the FTSE 250 index, shares in Helios Towers jumped 15%.
The London-headquartered telecom tower company said revenue in the third quarter was up 1% to $216.2 million from $214.5 million, while operating profit jumped 38% to $78.1 million from $56.5 million.
The firm tightened its 2025 guidance upwards. It expects adjusted Ebitda of $470 million, compared to a previous range between $460 million and $470 million.
Helios Towers said it is targeting returning more than $400 million to investors through to 2030. It launched a $75 million share buyback programme running through to the end of 2026.
It intends to return more than $250 million in a share buyback programme through to 2030, with more than $150 million dividend distributions.
The company expects to generate more than $1.3 billion cumulative recurring free cash flow between 2026 and 2030.
Watches of Switzerland shares were 5.5% higher as it said revenue was up 8% in the first half of the year to £845 million from £785 million.
The Leicester, England-based watch and jewellery retailer said demand for luxury watches ‘remains robust and continues to exceed supply’.
The firm reiterated its guidance provided in July, based on current US tariff rates.
Among small caps, Tan Delta Systems shares jumped 36%.
The provider of oil-quality monitoring and maintenance systems said a paid for phase two trial of by ‘one of the world’s largest multi-national online retailers’ has started to evaluate its rea time oil condition analysis and monitoring systems.
The customer is seeking to monitor critical gearboxes used on conveyor systems inside their distribution centres.
CEO Chris Greenwood said: ‘Whilst the timing of this opportunity progressing into a wider rollout is currently unknown it is progressing steadily, is another very significant future opportunity for us and it is notable that the customer is paying us for the phase two trial.’
Gold was higher at $4,013.70 an ounce early on Thursday from $3,978.61 late Wednesday. Brent oil was trading lower at $64.12 a barrel from $64.35.
Alongside the Bank of England decision, Thursday’s global economic calendar still has eurozone retail sales figures and the UK construction PMI reading, the latter which is due at 0930 GMT.
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