Published by Global Banking & Finance Review®
Posted on September 11, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleLondon stocks rose as investors evaluated earnings and US inflation data. FTSE 100 climbed 0.8%, with aerospace stocks reaching new highs and bank stocks increasing.
(Reuters) - London stocks rose on Thursday, boosted by industrials and bank stocks, as investors assessed corporate earnings and latest U.S. inflation data.
The blue-chip FTSE 100 closed up 0.8%, its best day in over three weeks. The domestically focused mid-cap index rose 0.7%.
In the U.S., data showed consumer prices rose more than expected in August, but a surge in first-time applications for unemployment aid last week appeared to keep the Fed on track to cut interest rates next Wednesday.
In London, aerospace and defence stocks rose 3.5% to hit a record high. BAE Systems rose 6.3%, Babcock gained 2.7%, Rolls-Royce rose 2.2%, and Avon jumped 7.9%.
Heavyweight bank stocks rose 1.1%. Top lenders HSBC and Barclays advanced 1.5% and 1.2% respectively.
Healthcare stocks added 0.6%, with GSK rising 1.9%.
On the flip side, personal goods stocks declined 1.7%, with Burberry falling 2.8%.
Energy stocks edged down 0.2%, tracking lower oil prices. Shell was down 0.4%.hcut its annual production forecast for the second time in nearly four months.
Among other stocks, Compass Group rose 2.8% after Deutsche Bank upgraded the food catering firm's rating to "buy" from "hold".
Ticketing firm Trainline jumped 12.2% after saying it expects to report annual adjusted core profit at the top end of its forecast range.
Gambling tech firm Playtech hit a record high earlier in the day and was last up 3.9% on positive first-half results.
M&G fell 1.8% as it traded ex-dividend.
The European Central Bank left interest rates unchanged as expected and maintained an upbeat view on growth and inflation, dampening expectations for any further cut in borrowing costs.
Meanwhile, British finance minister Rachel Reeves promised tax reform to help small business expansion.
(Reporting by Sukriti Gupta; Editing by Sahal Muhammed and Kevin Liffey)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is measured by the Consumer Price Index (CPI) and affects economic policy.
The FTSE 100 is an index that represents the 100 largest companies listed on the London Stock Exchange, based on market capitalization. It is a key indicator of the UK stock market's performance.
Bank stocks are shares in financial institutions that provide banking services. Their performance is often influenced by interest rates, economic conditions, and regulatory changes.
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