Late market roundup: FTSE 100 rises after oil strength lifts BP, Shell

Stocks ended mixed on Wednesday ahead of the US rate call, but the FTSE 100 closed up after reaching a record high, following gains in oil majors and well-received earnings.

The FTSE 100 index closed up 37.39 points, 0.3%, at 10,908.41. It had earlier hit a new intra-day high of 10,951.06, although it ended just short of its all-time record close of 10,910.55, seen in February.

The FTSE 250 ended down slightly at 23,996.81, while the AIM All-Share closed down 6.09 points, 0.8%, at 761.85.

The Cboe UK 100 was up 0.2% at 1,082.26, the Cboe UK 250 was 0.3% lower at 20,863.56, and the Cboe Small Companies was up 0.5% at 18,685.14.

In European equities on Wednesday, the CAC 40 in Paris closed down 0.6%, weighed by falls in luxury goods retailer Hermes, while the DAX 40 in Frankfurt ended down slightly.

Stocks in New York were weaker with fresh falls in technology stocks. The Dow Jones Industrial Average was down 1.5%, the S&P 500 index was 0.8% lower, and the Nasdaq Composite declined 1.1%.

After London's close, attention will focus on the US interest rate decision at 19:00 BST and earnings from 'Magnificent 7' members Meta Platforms and Microsoft.

Market pricing puts the chances of the US Federal Reserve raising interest rates at around 34%, making it one of the most uncertain meetings in years.

Much of this can be put down to a lack of forward guidance from new Fed Chair Kevin Warsh. Nonetheless, a clear majority of analysts expect the US central bank to leave rates on hold.

Eric Winograd, senior vice president and director of Developed Market Economic Research, AllianceBernstein said: "I do not expect the Fed to raise rates this week, and I have not seen any other credible forecaster who thinks that they will do so. That said, it can't be ruled out."

"By and large, the case for a rate hike is weaker now than it was at the time of the last Fed meeting," Winograd said, noting the June inflation and payrolls reports were both soft.

Still, the market is pricing a decent chance of a hike because several members of the Federal Open Market Committee have indicated that they are ready to raise rates and are likely to vote in that direction, whether with a majority or in dissent.

"It is likely that if Chair Warsh were to suggest a hike he would have enough votes to make it happen. He has told us nothing about his willingness or desire to raise rates, so we don't know if he intends to do so or not. I think probably not, but that uncertainty is reflected in market pricing," the analyst added.

The pound was lower at USD1.3284 on Wednesday afternoon, against USD1.3306 at the equities close on Tuesday. Against the euro, sterling was slightly lower at EUR1.1673 from EUR1.1674.

The euro stood lower at USD1.1380 from USD1.1397. Against the yen, the dollar was higher at JPY163.85, compared to JPY163.68.

The yield on the US 10-year Treasury stretched to 4.64% on Wednesday from 4.59% on Tuesday. The yield on the US 30-year Treasury widened to 5.12% from 5.09%.

Oil prices surged once more as US President Donald Trump vowed to hit back hard at Iran after it attacked US bases in Jordan on Wednesday.

The warning came after a short lull in the fighting that had spurred hopes of a return to negotiations appeared to draw to an end, sending the price of Brent crude back above USD90.

Brent oil for September delivery traded higher at USD90.09 a barrel on Wednesday afternoon, from USD84.87 late Tuesday.

The oil price gains boosted oil majors, including FTSE 100 heavyweights BP, up 3.4%, and Shell, up 2.8%.

Gold was lower at USD4,011.17 an ounce on Wednesday from USD4,035.95 on Tuesday, dragging shares of Fresnillo down 3.2% and Endeavour Mining down 2.8%.

Engineering firm Weir Group led the blue-chip gainers, up 8.7%, after strong first-half results and better-than-expected orders. Accountancy software provider Sage Group closed up 8.8%, after an upbeat trading statement.

Reckitt Benckiser rose 4.3% as it announced a new share buyback and reported like-for-like sales growth picked up in the second quarter driven by Emerging Markets.

Reckitt, which owns brands such as disinfectant Dettol and throat lozenges Strepsils, said like-for-like sales growth was 4.7% in its second quarter, beating the 3.6% Visible Alpha consensus cited by RBC Capital Markets. Price/mix grew by 3.2% and volumes by 1.5% - both ahead of forecast. Core Reckitt LFL sales grew 4.2% in the quarter, beating the 3.6% consensus.

RBC analyst James Edwardes Jones said results were "fine, or maybe better than fine given that there was a fear amongst investors of full year downgrades."

Asia-focused bank Standard Chartered was also in the green, up 2.9%, after it hailed a "record first half performance", announced a USD1.0 billion buyback and raised guidance.

It now expects operating income growth year-on-year for 2026 to be around the middle of its 5% to 7% range at constant currency, excluding "material notable items".

On the FTSE 250, Greggs pleased shareholders, jumping 18%, as it reported half-year sales and profit ahead of expectations.

Shares in the Newcastle upon Tyne bakery and fast food chain soared 17% as it said pretax profit improved 20% to £76.0 million in the 26 weeks to June 27 from £63.5 million a year before, with revenue up 7.2% to £1.10 billion from £1.03 billion, beating £73.1 million and £1.09 billion consensus, respectively, as cited by JPMorgan.

Operating profit increased 23% to £86.5 million from £70.4 million, ahead of £79.0 million consensus.

The biggest risers on the FTSE 100 were Sage Group, up 82.20p at 1,022.00p, Weir Group, up 220.00p at 2,744.00p, Burberry, up 53.00p at 1,193.00p, Reckitt Benckiser, up 224.00p at 5,400.00p and BP, up 17.80p at 543.50p.

The biggest fallers on the FTSE 100 were Aberdeen, down 10.60p at 238.00p, Diploma, down 310.00p at 7,110.00p, IMI, down 114.00p at 2,860.00p, Halma, down 120.00p at 3,410.00p and Fresnillo, down 120.00p at 2,481.00p.

Thursday's economic calendar includes the UK interest rate decision, eurozone unemployment and GDP data, and a US GDP reading.

Thursday's UK corporate calendar sees a slew of half-year results, including those from miner Anglo American, pest control specialist Rentokil, lender Lloyds Banking Group and aerospace company Rolls-Royce.

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