Finance
London stocks edge higher on upbeat corporate results
Published by Global Banking & Finance Review®
Posted on March 5, 2026
2 min readLast updated: March 5, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 5, 2026
2 min readLast updated: March 5, 2026
London’s FTSE 100 and 250 edged higher on March 5, led by energy and strong corporate results, while markets braced for reduced Bank of England rate cuts amid Middle East tensions and mixed UK activity data.
March 5 (Reuters) - UK shares edged higher on Thursday, supported by gains in energy stocks and positive corporate updates from firms, including Rentokil and Entain, while investors assessed the implications of the U.S.-Iran war entering its sixth day.
The blue-chip FTSE 100 index firmed 0.1% by 1201 GMT, while the FTSE 250 midcap index added 0.4%.
British equities continue to contend with the prospect of fewer interest rate cuts this year after the escalating conflict in the Middle East lifted oil prices and reinforced expectations of higher global inflation. Those concerns have pulled the FTSE 100 about 2.7% below the record high it reached on Friday.
Money market pricing now suggests only one quarter-point rate reduction by the Bank of England this year, compared with expectations for two cuts at the end of February. Traders assign a 75% probability that the central bank will leave interest rates unchanged at its meeting later this month.
Domestic economic data this week has been mixed. Activity in Britain's construction sector contracted for the 14th month in a row in February, a contrast with a more upbeat picture in the services PMI.
A separate BoE survey showed UK employers' expectations for wage growth held at their joint-lowest in nearly four years in February.
Rentokil jumped 13% to lead the FTSE 100 after the pest control firm reported a rise in annual adjusted pretax profit, while Entain gained 5.4% as the Ladbrokes-owner posted slightly better-than-expected annual profit.
Grafton gained 3.6% after the construction products distributor beat full-year adjusted operating profit and announced a new 25 million pound share buyback plan.
Energy giants Shell and gained about 1% each on the back of higher oil prices, boosting the UK benchmark index.
On the downside, Reckitt slipped about 6% after the maker of Durex condoms said it expected the challenging trading environment in Europe to continue.
(Reporting by Medha Singh in Bengaluru; Editing by Vijay Kishore)
London stocks rose due to strong corporate results from companies like Rentokil and Entain, plus gains in energy shares amid higher oil prices.
The ongoing U.S.-Iran war has led to higher oil prices and reinforced expectations of global inflation, impacting UK market sentiment and interest rate predictions.
Rentokil reported a 13% jump after rising profits, Entain gained 5.4% with higher-than-expected earnings, and Grafton advanced 3.6% after beating profit forecasts.
Markets now expect only one quarter-point rate cut by the Bank of England this year, with a 75% probability that rates will remain unchanged at the next meeting.
Energy stocks like Shell gained about 1%, while Reckitt fell 6% due to ongoing challenges in European trading.
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