FTSE 100 Rises Amid UK Parliamentary Polls and Medical Sector Gains

The FTSE 100 increased by 0.6%, boosted by strong performance in the medical equipment sector as Smith & Nephew shares surged. UK parliamentary polls are underway, with Labour Party leading in opinion polls. Trading is expected to be muted due to a U.S. holiday, and Barclays saw a slight gain from a sale agreement.

London's FTSE 100 climbed on Thursday, boosted by gains in medical equipment company Smith & Nephew, while parliamentary polls in the country were underway with the Labour Party looking set to win. The blue-chip FTSE 100 was up 0.6% after logging its best day in nearly two weeks in the previous session, while the mid-cap FTSE 250 was up 0.3%, as of 0755 GMT.

Polling for the parliamentary elections in the UK started at 0600 GMT and will continue throughout the day with an exit poll scheduled for 2100 GMT. Opinion polls showed the Labour Party winning, replacing the Conservatives after 14 years. Investors believe the market has already priced in the change, with the results due early on Friday.

"Both parties are quite similar in economic policies. There will be some change, but most of it is continuity when you compare with what's happening in France or Germany," said Gervais Williams, head of equities at Premier Miton. "The UK is actually an island of economic stability relative to the other elections going on around."

Trading activity in the session is expected to be low as the U.S. markets are closed for a holiday. Medical equipment and services stocks gained 4.7%, the most among the sectors. Smith & Nephew shares jumped 6.4% to their highest in more than three months and to the top of the benchmark index after Cevian Capital disclosed a stake of about 5% in the company.

The automobile and parts sector climbed 1.9% after an industry body said the registration of new cars increased "slightly" in June and crossed the half-year "million motors" mark for the first time since 2019. Also on the radar are non-farm payrolls data in the U.S., due on Friday.

Among individual stocks, Barclays gained 1.1% after the bank said it has agreed to sell its German consumer finance business to BAWAG Group AG for a "small premium to net assets", payable in cash.