FTSE 100 hits record 10,931 as earnings and oil lift blue-chips

The FTSE 100 climbed 60 points to 10,931 in opening trades, setting a new intraday record above 10,945 as earnings from Weir, Reckitt and Glencore fueled a broad-based rally.

"Markets are dealing with a nasty combination of Middle East escalation, inflation concerns and uncertainty over what central banks will do," said Patrick Munnelly, market analyst at Tickmill.

Weir Group surged 7.7 percent and Reckitt Benckiser jumped 6.8 percent after their half-year results, while Glencore added 4.4 percent after reporting trading profits of about $3.3 billion. Standard Chartered rose 4.7 percent after unveiling a $1 billion buyback and a 66 percent dividend increase. Shell and BP gained 1.3 percent and 1.5 percent, respectively, as Brent crude rebounded 3.9 percent to $87.36 a barrel after renewed US-Iran hostilities.

The rally extended Tuesday's 89-point gain and brought the index within striking distance of its February all-time high, though traders cautioned that the Federal Reserve's interest-rate decision later Wednesday — where markets price a 32 percent chance of a hike — could test the momentum.

The advance was broad-based, with miners and energy stocks leading alongside consumer staples. Greggs also contributed to the positive tone, reporting a sharp rise in first-half profit as new shop openings and grocery sales offset subdued consumer confidence. The bakery chain warned that second-half profit would fall year on year unless the consumer backdrop improves, though full-year expectations remained unchanged.

The gains in London contrasted with weakness in Asia, where South Korea's Kospi plunged 8.7 percent as chipmakers tumbled. SK Hynix fell as much as 20 percent after a six-fold rise in earnings was seen as a miss, while Samsung dropped 11 percent ahead of its own results. "The message is clear: investors are no longer rewarding AI exposure by default," Munnelly said. "They want proof of earnings conversion, margin resilience and demand durability."

European markets were mixed, with Germany's DAX down 0.15 percent and France's CAC 40 falling 0.5 percent, as the oil-price rebound and Middle East uncertainty weighed on trading. The resurgence in crude followed US reports of intercepting an Iranian attack, with Tehran state media saying missiles were launched in response to "aggressive US actions" and the Revolutionary Guards targeting three tankers in the Strait of Hormuz.

The Federal Reserve's decision later today is the next major test for global markets. Chair Kevin Warsh's new communication regime has left traders unusually uncertain, with the probability of a July rate hike swinging between 10 percent and 38 percent over the past two weeks. Attention will then shift to earnings from Microsoft and Meta after the US close.

This article is for informational purposes only and does not constitute investment advice.