London's FTSE 100 rises as Shell boosts energy stocks

FTSE 100 Rises Led by Shell Gains, While Pharma and Banking Stocks Fall

Market Overview and Sector Performance

Oct 29 - London's blue-chip index rose on Thursday, supported by gains in the energy sector, while investors awaited crucial inflation data in the US to gauge the Federal Reserve's monetary policy.

The blue-chip FTSE 100 index rose 0.3% to 10,782.19 points by 1004 GMT, while the midcap FTSE 250 also climbed 0.3%.

Energy Sector Leads the Gains

• Shell rose 3.2%, leading gains on the FTSE 100 after the oil major reported its highest quarterly profit since 2022, and increased its share buyback program

• Energy stocks outperformed the broader market, with the sector climbing nearly 2.8% despite a dip in oil prices

Other Notable Gainers

• British defence firms BAE Systems and Rolls-Royce gained 2.6% and 1.1% respectively, extending gains after Healey said "reprioritisation" would fill a £4.7 billion ($6.3 billion) gap in Britain's Defence Investment Plan

• National Grid rose 1.1% after the power grid operator said it plans to invest about £400 million ($531 million) to extend the life of the electricity link between Britain and France until at least 2050

• WPP gained 2.1% after the ad group said its turnaround plan was on track after reporting a smaller decline in third-quarter like-for-like revenue

Pharma and Banking Stocks Decline

• Conversely, Haleon slid 15.6%, set for its biggest one-day fall since its IPO in 2022 after the consumer health company cut its organic revenue growth forecast

• Haleon's slide put the pharma sector on track for another session of sharp declines, after GSK's results on Wednesday disappointed

Banking Sector Weakness

• Declines in pharma and banks limited the overall rise. Banks were dragged down by a 4.3% fall in Lloyds Banking Group after it reported muted third-quarter results

Impact of Government Policy

• Finance minister John Healey's less-than-feared tax hikes in his budget on banks and gambling firms had sparked a rally in their stocks on Wednesday

Macroeconomic and Policy Factors

• The US Federal Reserve held interest rates steady on Wednesday, bringing Thursday's personal consumption expenditure figures under scrutiny

(Reporting by Darshan Kumar and Purvi Agarwal in Bengaluru; Editing by Sahal Muhammed)