The FTSE 100 fell on Thursday as a surge in German bond yields rippled through European equities and ex-dividends wiped a significant number of points from the index.

London’s leading index was down  0.7% at the time of writing as traders contended a plethora of corporate results released against a backdrop of bond market volatility in Europe and the ongoing uncertainty of Trump’s next move. Companies including HSBC and Rio Tinto trading ex-dividend also weighed on the index.

The overarching concern was the spike higher in German bond yields after the German government announced a spending spree on infrastructure and defence. A historic rise in German 10-year bunds sent waves through the global bond market with US and UK bond yields rising, sparking fears about the outlook for interest rates.

“The UK markets have failed to latch onto the positive momentum seen from its US peers last night, with the FTSE 100 opening on the back foot,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“There’s a string of results to get through, from a giant in motor insurance to the world of legacy media, all while investors are trying to digest a major sell-off in European bonds yesterday, led by Germany, where there are expectations of a loosening of the country’s strict borrowing rules. UK Gilts followed suit, and yields have ticked higher again in early trading this morning, with rate cut expectations coming under fresh scrutiny.”

Investors had a raft of corporate results to pick through on Thursday. The standouts were Admiral and Melrose, but for very different reasons.

Melrose sank 11% despite reporting a strong set of results for 2024. It appears that investors were hoping for more from the outlook after a near 50% rally from October lows. Operating profit for 2024 surged 42%, but the company maintained 2025 guidance, sparking a wave of profit taking.

“It is often better to travel than arrive, and so it proved for aerospace engineer Melrose Industries as investors took profit despite a strong set of numbers which beat analysts’ expectations,” said AJ Bell investment director Russ Mould.

“The company has been pulled higher in Rolls-Royce’s tailwind amid recovering demand in the civil aviation space. The market reaction may reflect some disappointment about the company’s five-year targets, even if they do suggest a reasonable level of ambition on the part of management.”

Admiral’s announcement of a special dividend and a 90% jump in profit before tax drove the insurer’s shares 5% higher.

“Admiral has shifted gears and capped off a strong year with a special dividend,” Matt Britzman said.

“UK motor insurance has had quite the ride, with aggressive price hikes in 2022 and 2023 finally paying off last year. Admiral even managed to ease off the accelerator, reducing rates ahead of the market and helping to grow customer numbers by 15%, hitting a record 5.7 million.”

Schroders was the top riser after returning to growth in the last year. Shares were 6% higher at the time of writing.

Kenmare Resources shares jumped on Thursday after the titanium miner rejected a takeover approach following a period of poor share price performance.

• 530 pence per ordinary share offer from consortium
• Offer rejected unanimously
• Kenmare Resources paid over $48m in dividends in 2024

Kenmare Resources confirmed it received a non-binding cash offer from a consortium of Oryx Global Partners Limited and Michael Carvill, valuing the company at 530 pence per ordinary share. The company’s board unanimously rejected the offer.

The directors determined that the offer “undervalued Kenmare’s business and its prospects” despite the offer being nearly twice yesterday’s share price.

Kenmare shares were 59% higher at 437p at the time of writing.

Despite the rejection, Kenmare has offered to provide the consortium with access to limited due diligence information, potentially opening the door for an improved proposal.

Kenmare recently announced better-than-expected results for 2024, with production exceeding guidance.

“Kenmare delivered a strong finish to 2024, exceeding the midpoint of our production guidance for ilmenite and the upper end of the guidance ranges for all other products,” said Tom Hickey, Managing Director, Kenmare Resources.

The business is highly cash-generative and pays a substantial dividend.

“In 2024 we paid $48 million in dividends and invested over $140 million in capital programmes, primarily for the upgrade and transition of our largest mining plant to Nataka. Our balance sheet remains strong and we expect our full year 2024 dividend to be towards the upper end of our payout policy of 20-40% of profit after tax,” Hickey explained.

The FTSE 100 shrugged off concerns about Trump tariffs and a tumultuous session for US stocks overnight to rally within touching distance of all-time highs on Wednesday.

London’s leading index was 0.75% higher at the time of writing as the sentiment dramatically improved overnight after a worrying session for US stocks.

The Trump trade has been obliterated. All the gains the S&P 500 notched up since the election have disappeared, and instead of reporting record highs for US indices – as was the case just a few weeks ago – market commentators are talking about a 10% correction.

Those who thought Trump was threatening to use tariffs only as a negotiating tactic have been proved wrong, and investors have scrambled to rejig portfolios in anticipation of a fresh trade war that is impacting some of the United States’ closest trading partners.

However, there may be a glimmer of hope that a deal could be struck between the US, Mexico, and Canada, which powered markets higher as the European session got underway.

“European and Asian markets were on the front foot on Wednesday amid hopes that Donald Trump might partially wind back tariffs if deals could be struck with Canada and Mexico,” says Russ Mould, investment director at AJ Bell.

The FTSE 100 has displayed remarkable resilience this week as tariffs come into play, with UK-centric, mining, and defence stocks leading the index higher.

This was again the case on Wednesday. Strength in the Chinese economy helped lift the mood and hopes of peace in Ukraine aided sentiment.

“After a tortuous Tuesday for global markets, investors have clung onto sparks of positivity which have helped the FTSE 100 make some gains in early trade,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

“Hopes are rising that a Ukraine peace deal could be back on, China’s latest services snapshot shows promise and there are even some glimmers of possibility that some reprieve from punishing tariffs could be in sight.”

The gains were broad on Wednesday, with around 75 of the index consistently trading in positive territory.

Fresnillio was higher again, with a 5% gain after recently announcing a special dividend.

Games Workshop was the top riser after announcing it saw profit before tax ahead of expectations following a strong start to 2025. Games Workshop shares were 6% high at the time of writing.

“In a world full of uncertainty around economics, politics and consumer and business confidence, it’s refreshing to see a company be able to get on with the job of making money. Games Workshop is showing resilience in the face of a difficult market backdrop and it’s impressive how it has prospered this year,” Russ Mould said.

“Games Workshop’s recent promotion to the FTSE 100 puts pressure on management to keep delivering good news. They will want to show the world that its inclusion in the premium UK index is not a brief visit and that the business has what it takes to stay in the top league.

“Its customers are incredibly loyal and fully immersed in Games Workshop’s fantasy worlds. Some are building collections of miniature figures and others are playing the vast array of games; Games Workshop is a master at getting these customers to keep splashing the cash. At the same time, it also keeps a close eye on costs and runs an efficient ship.”

The risk-on feel to markets was compounded by weakness in utility stocks Severn Trent and National Grid who were rooted to the bottom of the leaderboard. National Grid shares were down 3% ahead of a capital markets day.

Games Workshop shares jumped after the fantasy model and media company said strong trading at the start of 2025 meant profits would be higher than previously thought.

Games Workshop released a short and sweet trading update on Wednesday, announcing that it saw full-year profit before tax ahead of expectations.

Shares were over 7% higher at the time of writing and had touched an all-time intraday high, before falling back.

The tabletop games company said trading in January and February had been strong across both its core business and its licensing business.

Games Workshop announced a licensing agreement with Amazon for the Warhammer brand to develop TV and film productions in late 2024, which promises to underpin the game’s popularity and provide an additional revenue stream. It’s unlikely this would have materially impacted trading in early 2025.

In the half-year results released in January, the company said that the ‘Warhammer hobby is in good shape’. It appears this continues to be the case.