Stocks in FTSE 100 index surge almost 1%, boosted by promising earnings reports
The U.K. stock market witnessed a mixed performance in July 2025, with some companies reporting significant gains while others experienced losses.
Lloyds Banking and Reckitt Benckiser saw their shares modestly increase, with the former reporting a 5% rise in first-half profit and the latter climbing nearly 11% after upgrading its full-year guidance. Airtel Africa and Vodafone Group also experienced growth, with Airtel Africa up nearly 7% and Vodafone gaining 4.7% due to a €500 million share repurchase program.
On the other hand, SSE and Fresnillo, Endeavour Mining, 3i Group, Intercontinental Hotels, and Melrose Industries experienced losses, with their shares decreasing by up to 2%.
The FTSE 100 index was up 85.87 points or 0.91% at 9,147.36, reflecting a positive overall trend.
The performance of various sectors was also noteworthy. The manufacturing sector had a softer decline, from 47.7 to 48.2, while the services sector had an expansion of 51.2. The defense and consumer discretionary sectors showed notable upside, with companies such as Rolls-Royce, BAE Systems, Babcock International, Diploma, Standard Chartered, Kingfisher, Ashtead Group, AstraZeneca, and Barclays experiencing gains.
Howden Joinery stood out, soaring 11.6% due to a 4.4% rise in pre-tax profit to 117 million pounds.
The ongoing trade negotiations between the U.K. and the EU, particularly ahead of a July 9 deadline, created market uncertainty but also opportunities, especially for sectors sensitive to trade terms. The Bank of England’s interest rate at 4.25% remains significantly higher than the eurozone’s rates, impacting investor sentiment and currency valuations.
Despite increased uncertainty about global growth due to geopolitical shocks and trade policy doubts, the U.K. stock market has performed robustly. The FTSE 100 has surpassed the 9,000 level and posted a 14.2% total return year-to-date (including dividends) as of late July. Mid-caps have also performed well, with the FTSE 250 delivering an 11% return in Q2, the best quarterly result since 2020.
Business confidence in the United Kingdom increased to -27 points in the third quarter of 2025 from -33 points in the second quarter of 2025, indicating a cautious optimism amid geopolitical and economic uncertainties.
In summary, the U.K. stock market performance in July 2025 is influenced by a complex interplay of trade deal progression, sector-specific developments, divergent monetary policies, strong earnings performance particularly in mid-caps, and cautious optimism amid geopolitical and economic uncertainties.
- The performance of companies like Lloyds Banking, Reckitt Benckiser, Airtel Africa, and Vodafone, which experienced gains, indicates a positive trend in the business sector and stock-market investing.
- On the contrary, firms such as SSE, Fresnillo, Endeavour Mining, 3i Group, Intercontinental Hotels, Melrose Industries, and others that experienced losses, signal a possible downturn in certain business sectors and the stock market.
