London’s FTSE 100 index experienced a modest increase on Thursday, buoyed by a rebound in financial stocks. However, the extent of the gains was limited due to ongoing tensions in the Middle East and apprehensions regarding escalating corporate expenditures on AI.

The blue-chip FTSE 100 rose 0.6% to 10,316.05 points by 0917, while the midcap FTSE 250 was flat.

• HSBC added 2%, while Standard Chartered also increased by 2%, and Prudential rose by 3.4% to lead gains on the blue-chip index.
• Stocks linked to Hong Kong are recovering from significant drops experienced in the previous week, following China’s implementation of stricter regulations on cross-border investments, a sector that has proven to be profitable for UK firms.
• Software stocks Relx and Sage Group were down 1.6% and 2.5%, respectively, tracking losses in euro zone companies such as SAP and Capgemini.
• Oracle unveiled new debt-backed AI spending plans. UBS has downgraded the broader European IT sector, reflecting investor concerns that enterprise clients might shift from traditional software companies to newer AI models.
• Frasers Group inched up 1% after the retailer controlled by British billionaire Mike Ashley launched a €2 billion ($2.31 billion) takeover offer for struggling German fashion brand Hugo Boss.
• Wizz Air gained 5.3% following a report that its operating profit exceeded analysts’ expectations. The carrier, however, forecast lower revenue per available seat kilometre for the first quarter, citing disruptions due to the Iran war.
• British health and safety device maker Halma has opened a new tab, sliding 12.6% after forecasting organic constant-currency revenue for fiscal 2027 to grow at a slower pace.
• The European Central Bank’s decision and perspective on interest rates will be scrutinised later today amid rising tensions in the Middle East.
• Traders expect the Bank of England to increase borrowing costs by 25 basis points in September, based on data compiled by LSEG, in an effort to address price pressures.