UK midcaps close at 10-month high with focus on earnings, rate path

Thu, 26th Jun 2025 17:23

FTSE 100 rises 0.2%, FTSE 250 gains 0.8%

Shell denies report on bid for BP

Moonpig falls after forecasting slower growth

Inchcape rises on maintaining full-year outlook

June 26 (Reuters) -

The UK's main stock indexes rose on Thursday, with midcaps closing at a 10-month high as investors digested corporate results and considered the outlook for interest rates after data indicated softening consumer spending.

The internationally-focused FTSE 100 ended up 0.2%, with a jump in the pound to its highest since 2021 weighing on dollar earners such as Unilever and HSBC .

Traders also scrutinised Shell's latest comments after the oil giant denied reports of ongoing talks to acquire rival BP. Shares in both companies traded marginally higher.

Focus globally was on the path of U.S. interest rates after a

report

said U.S. President Donald Trump was planning to choose the next Federal Reserve chief early, fuelling new bets on rate cuts and sending the dollar tumbling.

The pound gained even as a survey showed British retail sales slumped this month and expectations within the industry for July also deteriorated.

Recent data reports have signalled a softening domestic economy, and traders see a 64% chance of a rate cut from the Bank of England in August.

The FTSE midcap index climbed 0.8% to its highest close since August.

Analysts noted that domestically focused companies have been relatively insulated from trade uncertainties, while the UK remains among the few countries to have signed a trade deal with the United States.

Among companies that reported, Inchcape gained 5.9% after the car distributor maintained fiscal-year outlook through cost-cutting measures that offset U.S. tariffs and increased competition.

Moonpig slumped 9.2% to touch a more than two-month low after the greeting card retailer forecast slower earnings growth and announced the departure of its CEO.

Next 15 Group slumped 28% after the consultancy and marketing services provider warned full-year 2026 profit would significantly miss market expectations. (Reporting by Twesha Dikshit and Sruthi Shankar in Bengaluru; Editing by Tasim Zahid and Ed Osmond)