FTSE 100 Rises Amid Energy Share Boost and Tesco's Profit Forecast

The FTSE 100 index saw an uptick on Thursday, driven by a surge in energy shares and Tesco's improved profit forecast. Oil and gas stocks continued to rally as tensions in the Middle East threaten supply. Meanwhile, European services PMIs may indicate an economic slowdown, hinting at possible rate cuts.

The UK's FTSE 100 opened on a positive note this Thursday, thanks to a rise in energy shares, as Tesco, the nation's largest supermarket chain, increased its annual profit forecast.

By 0708 GMT, the blue-chip FTSE 100 index had climbed 0.3%, while the FTSE 250 nudged 0.2% higher. Energy-heavy stocks led the charge with a 0.6% gain, propelled by fears of a conflict escalation in the Middle East that might disrupt essential crude supplies.

Tesco's stock jumped 1.6% following a profit guidance increase, backing its 10% hike in first-half core profits. Conversely, insurer Phoenix Group and investment platform Hargreaves Lansdown declined sharply, losing share value due to their stocks trading ex-dividend. Meanwhile, Bank of England Governor Andrew Bailey hinted at potential swift rate cuts if inflation shows further improvement.

(With inputs from agencies.)