Rentokil Initial PLC

The London stock market closed slightly lower on Thursday after the Bank of England voted to hold interest rates at 3.75%, while corporate earnings were mixed. The FTSE 100 index closed at 10,897.27 points, down 11.14 points or 0.10%, after hitting an all-time high during the day before weakening late in the session. Rolls-Royce shares surged 6% after raising its full-year earnings forecast well above market expectations, and Mondi shares soared 10.9%, their biggest one-day gain since August 2022, following its first-half results, pushing the FTSE 350 general industrials index to its highest level since March 2025. Meanwhile, Rentokil shares tumbled 20.6% after warning that its North American business remains weak.

European stocks closed higher on Thursday, with the Stoxx 600 index rising 0.77% to 649.95 points, supported by strong earnings from companies across multiple sectors. The banking sector led gains, climbing 2.6%, driven by Spain's BBVA which surged around 5% after reporting a more than 11% year-on-year increase in second-quarter net profit. Construction and materials stocks added 2.2%, with Bouygues jumping 7.1% after first-half operating profit beat expectations. Industrial stocks rose 1.8%, buoyed by Schneider Electric which soared 10% after raising its full-year outlook. France's CAC-40 closed at 8,485.64 points, up 0.92%, Germany's DAX ended at 25,612.03 points, up 0.60%, while London's FTSE 100 slipped 0.10% to 10,897.27 points. However, gains were capped by declines in Airbus and Rentokil, as well as uncertainty over the US interest rate path after the Federal Reserve held rates steady amid differing views within the committee.

London's FTSE 100 Index reached new record intraday highs, touching 10,979.24 on Thursday and poised to close above the previous closing peak of 10,910.55 set on February 27. The index has recovered from initial losses triggered by the US and Israeli strikes on Iran on February 28, buoyed by strong results from energy and defence heavyweights. Rolls-Royce shares rose 6% after an earnings guidance upgrade, while BAE Systems gained 2% on a higher full-year outlook, and Shell posted better-than-expected second quarter results. Research director Kathleen Brooks of XTB noted the FTSE 100 is up 4.5% over the past month, with its mix of energy, defence, and consumer staples proving attractive amid a rotation away from global tech names. In contrast, Rentokil Initial saw its shares plunge 21% after warning of weaker North American residential demand.