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The FTSE 100 climbed this morning after a strong result from key components like Smith & Nephew, BP, and Diageo, among others. Although there are still uncertainties in the global economy, positive updates from businesses helped the UK gain momentum, even as Domino’s Pizza shares tumbled following a profit warning.
The FTSE 100 today index is under close watch as BP’s strong Q2 earnings fuel optimism among investors. At mid-morning, the FTSE 100 was up 0.3% at 9,157.51, while the FTSE 250 climbed 81.98 points to 21,941.48. Gains were led by Smith & Nephew, which jumped 15% after announcing a $500 million share buyback and strong interim results.
Medical technology firm Smith & Nephew soared 15% after its half-year earnings exceeded expectations. Trading profit rose 11% to $523 million, driven by margin expansion to 17.7%. The company now expects its profit margin to rise to between 19% and 20% for the full year, with underlying revenue growth near 5%.
Smith & Nephew Share Price has seen modest gains, supported by demand in healthcare markets. CEO Deepak Nath credited operational reforms under the company's ongoing transformation plan for the improved performance. The stock jumped to £1,322, its highest level in two years. Following BP’s Q2 report, BP Q2 Earnings beat analyst expectations with $2.4 billion underlying profit
Oil major BP rose over 2.3% after posting a stronger-than-expected $2.4 billion in Q2 profits. The company increased its quarterly dividend by 4% and announced a $750 million share buyback. Despite a 15% year-over-year decline in net income, investors welcomed the company’s commitment to shareholder returns and its reaffirmation to remain UK-listed.
Reports show Diageo Cost Savings plans have increased to around $625 million to offset tariff and profit pressure. CEO Murray Auchincloss emphasized a continued focus on oil and gas production over diversification into unrelated ventures. BP also unveiled its largest oil and gas discovery in 25 years, boosting market sentiment.
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Diageo gained 6% despite announcing a decrease in annual operating profit of 27.8% to $4.3 billion. The spirits maker increased its cost-saving target to $625 million, given ongoing tariff challenges and restructuring costs.
Despite the challenging sector outlook, the strong demand for key brands, including Guinness and Don Julio, offset the decline. Analysts said Diageo's ability to offset the tariff impact with operational savings did provide investors with some confidence.
Domino’s Pizza dropped 14% to £212.6 after cutting its full-year earnings forecast due to higher labor costs, taxation uncertainty, and weaker consumer spending. The company now expects underlying profit between £130 million and £140 million, down from previous estimates of £140.8m-£149.2m.
In the same market briefing, Domino’s Pizza Profit Warning highlighted a downgrade in guidance due to rising employment costs and soft consumer demand.
European indices also traded higher, with the DAX up 0.4% and the CAC 40 gaining 0.16%, as investors digested corporate results and looked ahead to upcoming macroeconomic data. In London, investor attention remains on earnings season, which continues to drive market direction in the short term.
