London’s main FTSE indexes moved higher on Thursday, supported by strong updates from financial and retail companies, while investor attention also turned to renewed takeover interest in easyJet.

The blue-chip FTSE 100 rose 0.3% by 0901 GMT.

The midcap FTSE 250 climbed 0.7%.

Both indexes were on track to record one-week highs, reflecting improved sentiment across parts of the market.

Financial stocks led the gains.

The advance came as investors responded to a series of corporate announcements across retail, travel, healthcare, and media.

Financials lead gains after Action sales update

Among the biggest movers was 3i Group, which rose 9.7% after its retail brand Action reported a 3.3% rise in like-for-like sales for the 25 weeks ended June 21.

The update helped lift the broader financial sector and provided fresh support to London’s benchmark indexes.

The market reaction suggested investors welcomed the trading performance at Action, which remains a key asset for 3i.

The sector’s strength was a major factor behind the FTSE’s advance during the session, as traders assessed company-specific developments rather than broad macroeconomic drivers alone.

Retailers jump on upbeat earnings and profit outlook

Retail names were also among the day’s strongest performers.

Greeting card retailer Moonpig jumped 10.3% after reporting upbeat annual pre-tax profit.

The company said customers were trading up to higher-priced gifts, a trend that appeared to support earnings.

Halfords posted even stronger gains.

Shares in the bicycles and car parts retailer surged 16.1% after the company forecast fiscal 2027 profit towards the top end of analyst expectations.

The updates from Moonpig and Halfords gave investors more confidence in the resilience of consumer-facing businesses, particularly those showing pricing strength or a more favourable profit outlook.

easyJet rises after rejecting latest Castlelake approach

easyJet was another key stock in focus.

Shares in the British budget airline rose 6.2% after the company rejected a fourth, sweetened takeover proposal from US-based investment firm Castlelake.

The proposal valued easyJet at £4.93 billion, or about $6.50 billion.

Despite rejecting the offer, easyJet said it would give Castlelake limited access to commercial information.

The move appeared to leave the door open for a potential improved bid, which helped fuel investor interest in the stock.

The company’s response suggested that while the latest proposal was not accepted, discussions may not be over.

ITV and advanced medical solutions also advance

ITV rose 2.3% after Comcast-owned Sky agreed terms to buy the FTSE 250 broadcaster’s broadcast and streaming unit.

Advanced Medical Solutions Group was another standout performer.

Shares in the medical supplier jumped 16% after it received a £715 million buyout deal, including debt, from US-based adhesives maker HB Fuller.

The developments added to a broader sense of deal activity in the market, with investors responding positively to acquisition-related announcements.

Inflation data and Bank of England outlook remain in view

Beyond company news, markets were also watching for a key US inflation report due later in the day.

The data was expected to offer further clues on the path of monetary policy.

Investors were also assessing the outlook for UK interest rates.

According to data compiled by LSEG, traders expect the Bank of England to raise borrowing costs by 25 basis points by the end of the year.

Political developments add to the market backdrop

In UK politics, Finance Minister Rachel Reeves announced her support for Andy Burnham, who is widely anticipated to become the UK’s seventh prime minister in a decade two weeks from now.

While the main driver of Thursday’s market move remained company-specific news, the political backdrop also remained on investors’ radar as markets weighed the broader direction of the UK economy and policy environment.

Overall, London equities were lifted by a wave of upbeat business updates, takeover activity and improved sector sentiment, helping both the FTSE 100 and FTSE 250 move towards one-week highs.

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