FX.co ★ FTSE 100 Rises On Corporate Earnings; BoE Rate Decision In Focus

UK stocks are experiencing a noticeable uptick on Thursday morning, echoing gains across major European markets. This surge comes as investors process a variety of quarterly earnings updates and anticipate the Bank of England's impending monetary policy decision.

The Bank of England is widely expected to reduce the interest rate by 25 basis points. Investors are keenly eyeing BoE Governor Andrew Bailey's press conference for insights into future policy directions and economic forecasts.

Despite apprehensions about U.S.-China relations and the potential for new tariffs from the Federal Reserve in the near future, the sentiment in European markets remains relatively upbeat at present.

The key FTSE 100 index advanced 105.98 points, or 1.23%, to reach 8,729.27 recently.

AstraZeneca is enjoying a 5.3% increase on the back of strong earnings. The company reported a fourth-quarter pre-tax profit of $1.666 billion, marking an 86% rise from $897 million in the same period the previous year. Operating profit climbed to $2.036 billion compared to $1.234 billion the prior year. After adjusting for one-time items, the core operating profit stood at $4.199 billion.

Net profit surged 56% to $1.5 billion, or $0.97 per share, from $959 million, or $0.62 per share, last year. The core EPS increased by 44% year-on-year to $2.09.

Anglo American Plc has risen by 5.7%, while Antofagasta is up 4.5%. Meanwhile, Prudential, Glencore, Rio Tinto, Beazley, Schroders, EasyJet, and Barclays Group are seeing gains of 2% to 3.5%.

Additionally, notable increases are observed in IAG, BT Group, Entain, Hiscox, Ashtead Group, Vodafone, Standard Chartered, BP, Endeavour Mining, Spirax, Pershing Square Holdings, Taylor Wimpey, HSBC Holdings, and Alliance Trust.

Conversely, IMI, Halma, and Weir Group Holdings are experiencing declines between 1.6% and 2%. Pearson, Compass Group, Segro, and Rolls-Royce Holdings are slightly lower.

On the economic front, data released by S&P Global revealed that the UK construction sector contracted in January, halting a 10-month growth streak due to declining orders and escalating cost pressures. The construction Purchasing Managers' Index dipped to 48.1 in January, down from 53.3 in December, marking the first time it has fallen below the 50.0 threshold since February 2024.