The FTSE 100 Live index has bounced back from previous losses, rising 26.15 points at 9213.49. Strong performances by defence stocks, particularly Rolls-Royce and BAE Systems, aided the recovery, as they held up despite overall market weakness. Read on to know the latest updates from FTSE 100 Live Today. 

Royal Mail Posts Profit Milestone Amid Challenges

Royal Mail reported an underlying profit of £12 million for the first time in three years. Despite a competitive backdrop, International Distribution Services (IDS), Royal Mail’s parent company, also posted an operating profit of £278 million, with revenues up by 4.8% to £13.1 billion.

This achievement follows Royal Mail’s £3.6 billion takeover by Czech billionaire Daniel Kretinsky’s EP Group. CEO Martin Seidenberg praised the workforce and emphasised the progress made in the company’s turnaround. 

However, the group still recorded an adjusted loss of £8 million after redundancy costs, a sharp improvement from a £336 million loss the previous year.

Defence Stocks Lead the FTSE 100 Recovery

Defence stocks led the FTSE 100’s recovery, with BAE Systems rising by 2% or £30 after the UK Ministry of Defence announced a £10 billion deal to supply Type 26 frigates to Norway.

Shares of Rolls-Royce gained £12, reaching £1082, as the company denied rumours of a planned IPO for its small nuclear reactor business. Babcock International also saw a boost, climbing £27 to £1043.

Endeavour Mining and Kainos Shine in the Markets

Endeavour Mining benefited from rising gold prices, with shares increasing by 3% to £ 2,604. The price of gold rose by 1.1%, reaching $ 3,474 an ounce, which supports mining companies like Endeavour.

In the FTSE 250, Kainos, one of the leading IT services providers, surged 14% after raising its revenue guidance for the year. The company secured several contracts in the public sector, including substantial work with the Home Office and NHS, which resulted in an adjusted profit of between £65.1 million and £74.7 million.

Also Read: Stock Market Today: Nifty at 24,550, Sensex Reclaims 80,200 on Banking, IT Boost

Housing Market Continues to Slow Amid Rising Mortgage Rates

In August 2025, the UK housing market softened, and the annual growth rate decreased from 2.4% in July to 2.1%. The average house price now stands at £271,079. The impacts of high mortgage rates and stretched affordability weigh on housing demand, creating challenges for buyers in raising deposits.

Robert Gardner, Chief Economist at Nationwide, stated that affordability remains a significant issue, impacting potential buyers. The slowdown in house prices signals ongoing challenges for the housing market amid cost-of-living pressures.

Outlook 

The FTSE 100 is showing signs of recovery following strong performances in the defense sector, positive results from Royal Mail, and an increase in the mining sector. Despite these gains, the housing market remains on a downward trajectory, as affordability continues to be an issue for potential buyers.