Early market roundup: FTSE 100 edges higher as Rolls-Royce climbs

European stocks were mixed on Thursday morning after Nvidia’s results beat expectations, and as a thin data calendar kept the focus on corporate earnings.

Numbers from Rolls-Royce impressed in London, Engie was on the move higher in Paris though Allianz fell in Frankfurt.

The FTSE 100 index was up 12.13 points, 0.1%, at 10,818.54 on Thursday morning.

The FTSE 250 fell just 5.72 points at 23,631.17, and the AIM all-share fell by even less. It was down just 0.0099 of a point at 816.78.

The Cboe UK 100 was up 0.1% at 1,076.98, the Cboe UK 250 fell 0.1% at 20,868.83, and the Cboe small companies added 0.3% at 18,469.71.

The CAC 40 in Paris added 0.4% though the DAX 40 in Frankfurt lost 0.2%.

Keeping a lid on its progress was the mining sector and lender HSBC, which returned some gains. Rio Tinto was 1.5% lower, while HSBC was down 1.8%. The bank’s 7.9% stride on Wednesday meant it ended the day as the FTSE 100’s largest constituent. Thursday’s decline means drugmaker AstraZeneca has reclaimed that crown, however.

In Paris, Engie added 7.3% as it upped its 2026 view and announced a bumper acquisition. The electric company expects earnings before interest and tax, excluding nuclear, of €8.7 billion to €9.7 billion and recurring net income group share of €4.6 billion to €5.2 billion.

This is raised from previous guidance of €8.2 billion to €9.2 billion and €4.2 billion to €4.8 billion, respectively.

In addition, it announced the acquisition of electricity distributor UK Power Networks for an equity value of £10.5 billion in a deal with the CK Group.

Over in Frankfurt, insurer Allianz shed 1.3%. It said fourth quarter operating profit rose 3.0% on-year to €4.30 billion, beating consensus of €4.29 billion, though in Property-Casualty alone, operating profit rose 9.6% to €2.13 billion, below consensus of €2.16 billion.

Shining in London, Rolls-Royce surged 5.3%. It set out bullish new mid-term financial targets and launched its first multi-year share buyback programme as it delivered annual results ahead of forecast.

In 2025, pretax profit more than trebled to £6.94 billion from £2.23 billion, with revenue up 12% to £21.21 billion from £18.91 billion.

Underlying operating profit surged 41% to £3.46 billion from £2.46 billion, comparing favourably to consensus of £3.27 billion.

For 2026, Rolls-Royce expects underlying operating profit between £4.0 billion and £4.2 billion, as well as free cash flow in the range of £3.6 billion and £3.8 billion.

Based on the 2026 guidance, Erginbilgic said Rolls-Royce expects to deliver underlying operating profit within the prior mid-term guidance range two years earlier than planned.

Rolls-Royce announced a 5.0 pence final dividend, taking its full year payout to 9.5p, up from 6.0p in 2024.

In addition, the firm said its ‘strong balance sheet position, alongside our upgraded mid-term targets for operating profit and free cash flow, gives us confidence to announce our first multi-year buyback programme.’

It announced a £7 billion to £9 billion share buyback programme for 2026 through to 2028, with a £2.5 billion chunk to be completed this year.

Hikma Pharmaceutical tumbled 17%. It announced a $250 million buyback, lifted its dividend and unveiled leadership changes, though its softer outlook was in focus.

It sees 2026 revenue growth in the 2% to 4% range, slowing from 7% in 2025. It predicts core operating profit in the range of $720 million to $770 million, below consensus of $784 million.

Elsewhere in London, National Express owner Mobico surged 32% as it predicted £100 million in savings for 2026.

It sees adjusted operating profit coming in at £195 million to £210 million this year. For 2025, it reported Thursday that adjusted operating profit grew to £198.0 million from £181.1 million.

‘Together with our other initiatives, we expect to deliver £100 million of annualised cost savings for the group by the end of 2026,’ Executive Chair Phil White said.

The pound traded at $1.3524, down from $1.3537 late Wednesday. The euro ebbed to $1.1801 from $1.1804. Against the yen, the dollar bought JP¥155.98, down from JP¥156.39.

The yield on the US 10-year Treasury was steady at 4.05%. The 30-year yield widened to 4.70% from 4.69%.

In New York on Wednesday, the Dow Jones Industrial Average added 0.6%, the S&P 500 rose 0.8% and the Nasdaq Composite added 1.3%.

Nvidia edged up 0.2% after hours. It reported better than expected fourth quarter revenue, driven by 75% growth in its key Data Center business.

Nvidia reported net income of $42.96 billion in its fourth quarter ended January 25, up 94% from $22.09 billion a year ago. Diluted earnings per share was $1.76, up 98% from $0.89.

Revenue totalled $68.13 billion, up 73% from $39.33 billion last year, and ahead of the $66.21 billion LSEG consensus.

In the current quarter, revenue is expected to be $78.0 billion, plus or minus 2%, up from $44.1 billion a year ago. Nvidia said it does not include any Data Center compute revenue from China in its outlook.

In Tokyo, the Nikkei 225 added 0.3%. The Shanghai Composite ended slightly lower while the Hang Seng Index in Hong Kong was down 1.4%. Sydney’s S&P/ASX 200 added 0.5%.

A barrel of Brent fell to $70.47 early Thursday, from $70.76 at the time of the London equities close on Wednesday. Gold declined to $5,178.21 an ounce from $5,204.64.

Thursday’s global economic calendar has US initial jobless claims data at 1330 GMT, after a eurozone consumer confidence reading at 1000.

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