FTSE 100 Surges Amid Oil Stock Rally and Upbeat Earnings

The FTSE 100 index hit a record high due to oil stock gains and strong earnings from top firms. Oil companies Shell and BP surged following U.S. sanctions on Russia. LSEG and Rentokil also reported better-than-expected earnings. UK markets thrive amidst geopolitical issues and potential interest rate cuts.

London's FTSE 100 saw an intraday record on Thursday, buoyed by oil stocks and positive reports from blue-chip companies like the London Stock Exchange Group (LSEG) and Rentokil. The FTSE 100, rich in commodities, climbed 0.7% to 9,579.07 points before easing slightly by midday GMT.

Oil giants Shell and BP each rose by about 3% as crude prices soared over 5% in response to U.S. sanctions on prominent Russian suppliers Rosneft and Lukoil amid ongoing tensions in Ukraine. Such geopolitical dynamics boosted demand for safer assets, reflected in a 4.5% rise in UK precious metal miner indices.

The robust earnings season and expectations of a Bank of England rate cut further fueled market optimism. Despite some slipping stocks like InterContinental Hotels and Renishaw, the FTSE has been on its best weekly run since April, while the FTSE midcap index reached close to a four-year peak.

(With inputs from agencies.)