London stocks rise as Shell lifts FTSE 100, while inflation data stays in focus

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London stocks rise as Shell lifts FTSE

Highlights

FTSE 100 rises 0.3% to 10,782.19 as Shell jumps 3.2% after record quarterly profit and an increased share buyback programme.
Haleon plunges 15.6% after cutting its organic revenue growth forecast, dragging the pharma sector and capping market gains alongside banking declines.
National Grid gains 1.1% with a £400 million interconnector investment, while BAE Systems and Rolls-Royce climb as UK reprioritises £4.7 billion Defence Investment Plan.

Energy gains drive early market performance

As reported by Reuters, London's FTSE 100 rises 0.3% to 10,782.19 points by 1004 GMT, while the midcap FTSE 250 also adds 0.3% as energy shares lead the market higher.

Shell climbs 3.2% after the oil major reports its highest quarterly profit since 2022 and increases its share buyback programme. The energy sector outperforms the broader market, rising nearly 2.8% even as oil prices dip.

National Grid gains 1.1% after saying it plans to invest about 400 million pounds to extend the life of the electricity link between Britain and France until at least 2050. WPP adds 2.1% after the advertising group says its turnaround plan remains on track following a smaller decline in third-quarter like-for-like revenue.

Healthcare and banks cap broader advances

Gains across the main index are limited by sharp losses in healthcare and banking names. Haleon drops 15.6% and is set for its biggest one-day fall since its 2022 IPO after cutting its organic revenue growth forecast.

Haleon's decline leaves the pharma sector on track for another session of steep losses after GSK's results on Wednesday disappoint. Banks also weaken, with Lloyds Banking Group down 4.3% after reporting muted third-quarter results.

Defence stocks continue to advance after Finance Minister John Healey says reprioritisation will fill a 4.7 billion pound gap in Britain's Defence Investment Plan. BAE Systems rises 2.6% and Rolls-Royce gains 1.1%, extending Wednesday's move, while market attention shifts to U.S. personal consumption expenditure figures following the Federal Reserve's decision to keep rates steady.

In our earlier article on the UK economy’s response to the energy price shock, we noted Bank of England Deputy Governor Sarah Breeden’s view that the impact on activity has been less severe than first feared. We also highlighted how fiscal measures and central bank interventions helped steady markets, while policymakers remain focused on lingering risks from inflation, volatility, and still-elevated energy costs.

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