London’s blue-chip index closed firmly higher on Thursday, with the FTSE 100 gaining 0.70% as encouraging economic data buoyed investor sentiment across the market.
The rally was driven by the latest purchasing managers’ index figures, which showed Britain’s private sector expanding at its fastest pace in four months during August.
The seasonally adjusted S&P Global UK PMI Composite Output Index rose to 52.5 in August, as initially estimated, up from 52.2 in the previous month.
The final report attributed the improvement to an acceleration in services output growth, while manufacturing production increased at the slowest pace in four months.
S&P Global Market Intelligence Economics Director Tim Moore said: “Service providers are increasingly optimistic about the year ahead business outlook, with confidence levels now close to those seen just prior to the Middle East conflict.”
Moore added: “However, business activity growth projections were still subdued in comparison to long-run trends amid lingering worries about inflationary pressures and geopolitical tensions.”
British investment manager M&G (MNG.L) rose 1.46% despite reporting a loss attributable to equity holders of 170 million pounds for the six months ended June 30, swinging from a profit of 243 million pounds a year earlier.
RBC Capital Markets noted that “net income, however, was a big miss to consensus at GBP-165m vs GBP172mE, after GBP325m Ground Rent impact, GBP120m from equity hedges, and an increase in restructuring costs from GBP37m to GBP60m y/y.”
RBC Capital Markets also said: “For FY26, M&G now guides to a ‘low double-digit’ [adjusted operating profit] yoy growth; with FY26 company compiled consensus already at +11%, we see limited room for FY26 upgrades post today’s release.”
Leisure travel company Jet2 (JET2.L) climbed 3.91% after announcing plans to transfer its entire share capital to the main market of the London Stock Exchange from the AIM segment before the end of its current financial year.
Jet2 also reported a 7.6% year-on-year increase in summer 2026 seat capacity, bringing its total seats to 19.9 million across the season.
Hilton Food Group (HFG.L) was among the session’s standout performers, with shares surging 12.12% after the food company upgraded its full-year profit expectations.
The company raised its adjusted profit before tax guidance from continuing operations to a range of 66 million pounds to 71 million pounds, up from a prior range of 60 million pounds to 65 million pounds.
On the geopolitical front, US Secretary of State Marco Rubio stated that actions against Iran will persist to stop threats to global shipping lanes, adding a layer of uncertainty to broader market sentiment.
President Donald Trump said he does not expect the renewed military operations against Iran to stretch on for a long time, offering some reassurance to markets sensitive to energy and trade disruption risks.