The FTSE 100 was on the up on Thursday amid rising hopes of an interest rate cut by the Bank of England. Diploma was the top riser after boosting full-year guidance.

There was high drama going into yesterday’s close after a White House official said Trump was on the verge of sacking Fed Chair Powell, only for Trump himself to deny it minutes later. 

The FTSE 100 sank into the close yesterday in line with a decline in US stocks before futures rebounded sharply on Trump’s denial, leading to a higher open for the index this morning.

UK stocks were also boosted by poor jobs data, which raised hopes that the Bank of England would act to steady the UK economic ship. The UK is losing jobs at a rate that cannot be left unchecked by the central bank, and interest setters will be under pressure to step in and ease monetary policy. 

“The UK labour market has seen a net loss of 178,000 jobs over the past year, in stark contrast to the previous year when there was a gain of 260,000 jobs,” said Seemanti Ghosh, Principal Economist at the Institute for Employment Studies.

“The labour market continues to weaken with the unemployment rate ticking up to 4.7%, a further 75,000 drop in payrolled employees on quarter and vacancies falling for the 36th consecutive period.”

The poor state of the UK jobs market makes an interest rate cut at the BoE’s next meeting a near certainty. Investors, businesses and households will hope it’s followed by more cuts later this year. 

Sterling weakened slightly against the dollar in the immediate reaction to the jobs number, providing support for the FTSE 100.

“Having seen a rapid retreat from the briefly attained 9,000 mark earlier this week, the FTSE 100 made steady progress on Thursday to put this milestone level back within reach,” says AJ Bell investment analyst Dan Coatsworth.

“Financial stocks were among the gainers, while specialist distributor Diploma led the way as it lifted its full-year target for organic growth.”

Diploma surged over 7% to all-time highs after upgrading its full-year outlook. Lloyds gained 2.5% and NatWest added 1.3%.

Easyjet was the FTSE 100’s biggest casualty despite the group announcing respectable profit expansion. Investors are evidently concerned about the outlook, as higher oil prices erode margins, and the success of the key summer trading period depending on late bookings. 

“easyJet’s underlying pre-tax profits flew 21% higher in the third quarter to £286 billion, boosted by strong demand and the timing of the Easter break,” said Derren Nathan, head of equity research, Hargreaves Lansdown.

“But the no-frills airline is running up against some turbulence. The price of jet fuel shot up following military action against Iran, and it’s proving to be stickier than crude oil prices. Meanwhile, the widespread disruption over French airspace due to an air traffic control strike is also weighing on the outlook. These are factors outside of the group’s control, but with the trend towards later booking patterns holding firm, passengers look to be holding out for last-minute bargains. That adds an extra degree of uncertainty around the peak travel period, which falls in the group’s final quarter.”

Ocado Group has posted robust first-half results driven by its Technology Solutions division, which more than doubled EBITDA to £72.8m whilst expanding margins from 14.4% to 26.3%. Group revenue climbed 13.2% to £674.0m, with Technology Solutions up 14.9% and Ocado Logistics advancing 12.1%.

The company’s adjusted EBITDA surged 76% to £91.8m from £52.0m in the prior year, reflecting the growing profitability of its international partnerships and operational improvements across its automated fulfilment network. Investors will be pleased to see the group consistently turning a profit after a prolonged period of being loss-making.

Technology Solutions EBITDA surged to £72.8m in the first half from £34.8m in the same period last year.

“Ocado Group has delivered a strong first half and we have reached important milestones both in our UK business, as well as across our international partnerships,” said Tim Steiner, CEO of Ocado Group.

“Our Technology Solutions division has more than doubled EBITDA and our underlying cash flow has improved significantly, ending the period with liquidity in excess of £1 billion. Our focus remains on turning cash flow positive during FY26, supported by continued growth with our partners and cost discipline across the business.”

CFC Network Expansion Accelerates

Many have viewed Ocado as a technology business with a bolt-on retail arm, so slow progress with the rollout of their Customer Fulfilment Centres (CFCs) was a major concern in recent years. Thankfully, things look to be improving.

Ocado’s CFC network is building momentum, with total weekly volumes across the global network growing 23% year-on-year. The group now operates 119 live modules, up from 112 at the half-year mark, with average live modules increasing 8.9% to 122.

The rollout of Re:Imagined technologies continues to unlock additional capacity for partners. In Detroit, Kroger’s CFC has achieved 50% more throughput than its original design capacity, prompting an order for an additional module expected to go live in early 2026. The deployment of On Grid Robotic Pick (OGRP) technology has reached 265 units worldwide, up from 92 at the full year, with the mature Luton CFC now processing almost 40% of volumes robotically.

Ocado expanded into two new markets during the period, launching AI-powered in-store fulfilment software in South Korea with Lotte and Saudi Arabia with Panda. Lotte’s first CFC near Busan is scheduled to go live in early 2026.

The company has extended its partnership with Spain’s Bon Preu, its longest-standing international partner, with plans for an automated CFC outside Barcelona featuring the full suite of Re:Imagined technologies. Australian partner Coles continues to report strong progress with volume ramp-up and improved customer satisfaction.

Ocado Retail

Ocado Retail maintained its position as the UK’s fastest-growing grocer for the 12th consecutive month, with revenue up 16.3% and EBITDA rising to £33.3m. The successful migration of all UK customers to the Ocado Smart Platform enables access to advanced capabilities including variable delivery slots and same-day delivery options through Ocado Swift-Router.

McBride shares fell on Wednesday after the hygiene and cleaning goods firm reported revenue growth of 0.7% for the year to June 2025, with adjusted operating profit expected to meet expectations.

The European manufacturer of private label and contract cleaning products saw total volumes rise 4.3%.

However, the company highlighted a slowdown in private label growth. Private label volumes increased just 1.4%, whilst contract manufacturing surged 48.9% due to new long-term deals.

McBride noted that demand for private label products remains strong, but market share has stabilised at current levels. The company said retailers are increasingly seeking cost reductions to support lower market pricing amid ongoing inflationary pressures.

Slowing private label growth will hamper the outlook for the group, and shares were trading down 12% at the time of writing.

Contract manufacturing proved the standout performer, benefiting from significant new long-term contracts secured in recent periods.

The group continued reducing debt, with net debt falling £26.3m to £105.2m. This represents a net debt cover ratio of 1.2x.

McBride announced plans to reinstate annual dividends for the current financial year, with details to be revealed alongside full-year results on 17 September 2025.

Mining giants Antofagasta and Rio Tinto helped the FTSE 100 higher on Wednesday as investors digested hotter-than-expected UK inflation and the latest instalment of Trump’s tariff threats.

After trading above 9,000 for the first time in history yesterday morning, the FTSE 100 sold off during the afternoon and finished the session deep in the red.

Despite an overnight wobble in US stocks and UK inflation coming in at 3.6%, London’s leading index was 0.2% higher at the time of writing.

Interest rate futures markets quickly priced in fewer interest rate cuts this year after the latest UK inflation reading, which weighed on UK-centric sectors such as REITs and the housebuilders.

“The spectre of inflation has returned to haunt markets after a period when investors’ attention has largely been centred elsewhere,” said AJ Bell investment analyst Dan Coatsworth.

“UK inflation increasing to an 18-month high in June thanks to higher fuel and food prices will only reinforce concern about inflationary pressures as the market weighs the potential impact on interest rates,” said AJ Bell investment analyst Dan Coatsworth.

Rio Tinto and Antofagasta were among the gainers after the miners released their Q2 production reports. Both rallied in early trade before falling back.

“Rio Tinto delivered a solid Q2 production performance, with standout results in copper and bauxite, and the strongest iron ore production for a second quarter since 2018,” explained Adam Vettese, market analyst for eToro.

“However, despite the headline strength in output, iron ore shipments fell short of expectations and the increasing share of lower-grade SP10 ore raises concerns about price realisations and margin pressure. The reaffirmation of guidance at the low end of the shipment range suggests lingering operational constraints, particularly around logistics and equipment availability, following Q1’s weather disruptions.”

Antofagasta reported a 16.9% increase in copper sales year-to-date.

AstraZeneca offset gains in the miners with a 1.2% loss after a disappointing clinical trial.

“Heavyweight stock AstraZeneca dragged on the index after a late-stage trial on an experimental treatment for a rare condition failed to meet its primary target,” said Coatsworth.

Real Estate Investment Trust Land Securities was the FTSE 100’s top faller with losses of 2%.

An 11% year-on-year rise in Intermediate Capital Group’s AuM sent the stock to the top of the FTSE 100 leaderboard with a 3.5% increase.

The FTSE 100 remained steady on Tuesday after London’s leading index surpassed 9,000 for the first time in history, underscoring the strength of UK stocks so far in 2025.

Breaching the 9,000 mark is a major milestone for London’s leading shares after spending years in the shadow of US stocks. The UK’s weighting towards natural resources and defensive sectors, such as pharma and utilities, has proved to be a magnet for investors seeking alternatives to US stocks as questions about US exceptionalism begin to creep in.

The UK’s low valuation has been well documented, but this year has seen the first signs of investors making sustained efforts to exploit the good value in UK shares, culminating in record highs above 9,000.

The FTSE 100 was trading at 8,992 at the time of writing.

“It’s party time as the FTSE 100 has smashed through the 9,000 level. This is another big tick in what’s proving to be a momentous year for the UK stock market. It took eight years for the FTSE 100 to go from 7,000 to 8,000, yet only two years to break through 9,000. That suggests the market is shaking its unloved reputation and more investors like what’s on the menu,” explained Dan Coatsworth, investment analyst at AJ Bell.

“Outperforming the main US indices since January is a major achievement for the UK and the FTSE 100 going through 9,000 builds on this success. It should help to convince overseas investors that the UK market isn’t dull and boring.”

Although the FTSE 100’s rally in 2025 has been driven by differences from US markets, gains in US indices did contribute to boosting sentiment on Tuesday, as Nvidia shares soared in the premarket and JP Morgan reported strong results.

It has been rare for US and UK stocks to break record highs simultaneously, but that’s exactly what’s happening this week, with the NASDAQ scaling fresh highs alongside the FTSE 100.

“This surge in U.S. equities futures comes ahead of a series of high-impact economic releases scheduled for this week. Investors appear to be betting on the resilience of the U.S. economy and its corporate sector amid ongoing uncertainty surrounding trade tensions and monetary policy,” said Samer Hasn, Senior Market Analyst at XS.com.

News that Nvidia will be able to ship key AI chips to China sent the stock higher and set US stocks up for more record highs on Tuesday.

In the UK, Experian was the FTSE 100’s top riser after reporting strong Q1 results driven by organic growth. Experian shares were 4% higher at the time of writing.

“We delivered strong Q1 growth and have further advanced our strategic priorities,” said Brian Cassin, Chief Executive Officer, Experian. “Total revenue growth at constant currency was 12%, with organic revenue growth of 8%, sustaining recent strong underlying performance and our financial outlook for the year is unchanged.”

Barratt Redrow’s results weighed on the housebuilders after the group issued a downbeat assessment of the UK property markets alongside an 8% drop in completions. Barratt Redrow shares were down 6% at the time of writing and are trading at the lowest levels since 2023.

“The sector is firmly in the red after a shocking update from Barratt Redrow whose full-year results reveal home completions below expectations,” Dan Coatsworth said.

“It says consumers remain cautious and mortgage rates are not falling as quickly as hoped. The general tone is one of frustration and a lack of confidence in the near term, which has soured sentiment across the housebuilding sector. If one of the biggest housebuilders in the country is flagging headwinds, it doesn’t give much hope to the others.”