LONDON, August 1, 2026, 10:44 BST — The market ended the week with trading closed for the weekend.
- The FTSE 100 ended the week at 10,868.05, up 1.23%. The FTSE 250 advanced 0.73%.
- Out of the blue-chip index’s 131.82 net weekly points, 126.66 were added on Tuesday and Wednesday.
- Key earnings from the energy, banking, mining, retail, and consumer sectors are scheduled for next week.
Nearly all of the FTSE 100’s net weekly point increase came from Tuesday and Wednesday, which together accounted for 96% of the total movement.
The index advanced by 1.23% to reach 10,868.05. The FTSE 250 climbed 0.73%, resulting in a difference of 0.50 percentage points.
The gap serves as a signal to investors, indicating selective trading in large-cap stocks rather than suggesting a broad rerating of the UK market.
On Wednesday, the FTSE 100 had gained 1.60% compared to the previous Friday. Losses on Thursday and Friday cut back 0.37% of those gains.
| Benchmark | July 24 close | July 31 close | Weekly change |
|---|---|---|---|
| FTSE 100 | 10,736.23 | 10,868.05 | up 1.23% |
| FTSE 250 | 23,801.49 | 23,975.02 | up 0.73% |
| FTSE 100 lead | — | — | 0.50 percentage point |
The daily trajectory illustrates how focused the rally grew. Closing numbers reflect final values, and the last column highlights each session’s primary catalyst.
| Session | FTSE 100 close | Daily move | Dominant signal |
|---|---|---|---|
| Monday, July 27 | 10,781.75 | +0.42% | Oil prices slipped; appetite for travel and risk climbed |
| Tuesday, July 28 | 10,871.02 | +0.83% | Strong consumer earnings help offset weakness in banks and energy sectors |
| Wednesday, July 29 | 10,908.41 | +0.34% | Energy sector climbed 2.9% as oil advanced almost 7% |
| Thursday, July 30 | 10,897.27 | −0.10% | Bank of England unchanged; results were highly mixed |
| Friday, July 31 | 10,868.05 | −0.27% | Record peak slipped; energy still finished up 1.9% |
The index set a fresh intraday high of 10,989.45 on Friday, before ending the session 121.40 points under its top. Energy stocks gained 1.9% as Brent held above $90.
Shares of Unilever LON:ULVR jumped 8.58% on Tuesday, marking its best single-day performance in four years. The company’s underlying sales rose 5.8% in the second quarter, driven by a 5.5% increase in volumes. Unilever raised its 2026 underlying sales growth outlook to a range of 4%-6%.
Shares of Rolls-Royce Holdings LON:RR climbed 6% on Thursday as the company raised its annual forecast. The firm now projects underlying operating profit between £4.7 billion and £4.9 billion. Underlying profit for the first half grew by 46%, with the margin at 22.5%.
NatWest Group LON:NWG rose 3.22% on Friday following its results. Operating profit before tax for the first half came in at £4.3 billion, ahead of forecasts. CEO Paul Thwaite stated the performance provided NatWest “confidence to strengthen our guidance for 2026.” Reuters
Rentokil Initial (LON:RTO) shares dropped 20.6% on Thursday following the company’s warning about weakness in its North American business.
The contrast highlights investors’ clear distinction between upgrades and performance shortfalls. Closing prices on Friday are listed in pence.
| Company | Event-day move | Friday close | Main result signal |
|---|---|---|---|
| Unilever LON:ULVR | +8.58% Tuesday | 4,743.0p | 2026 sales growth forecast raised |
| Rolls-Royce Holdings LON:RR | +6.0% Thursday | 1,467.8p | Outlook for operating profit increased |
| NatWest Group LON:NWG | +3.22% Friday | 705.8p | Forecast improved; 12.0p interim payout |
| Rentokil Initial (LON:RTO) | −20.6% Thursday | 344.8p | Weakness in North America highlighted |
The Bank of England voted 6-3 to keep Bank Rate unchanged at 3.75%. Three committee members supported raising it to 4%. Consumer price inflation for June was 2.6%, and policymakers anticipate inflation will climb again later in the year.
Rob Wood, an economist at Pantheon Macroeconomics, drew a clear connection between oil and interest rates. “The rate outlook depends very heavily on the oil shock,” he said. Reuters
The FTSE 250 posted its third weekly advance in a row. The modest increase, however, means the domestic breadth test remains inconclusive.
Several direct tests are set in scheduled results for next week.
| Date | Company | Scheduled release | Investor test |
|---|---|---|---|
| Tuesday, August 4 | BP LON:BP | Half-year results | Performance of energy earnings, company outlook |
| Tuesday, August 4 | HSBC Holdings LON:HSBA | Half-year results | Focus on bank margins, credit levels and capital returns |
| Wednesday, August 5 | Glencore LON:GLEN | Half-year results | Mining sector results, cash flow |
| Wednesday, August 5 | Next LON:NXT | Trading statement | Trends in UK consumer spending |
| Thursday, August 6 | Diageo (LON:DGE) | Full-year results | Worldwide consumer demand, price trends |
BP, HSBC and Glencore are set to challenge the leading global sectors from last week. Next and Diageo provide a more direct gauge of overall market breadth.
Risks: An extended energy shock may push inflation higher and maintain restrictive policy. A stronger sterling could further diminish overseas-derived profits for FTSE-listed firms.
Related articles: LON:ULVR
TS2 Tech • British equities market
UK Stock Market Forecast: Earnings Must Broaden the Rally
FTSE 100 index
10,868.05
Britain’s blue-chip index opens the week trading 1.10% under its all-time high. Further direction will rely on the breadth of earnings rather than a renewed rise in oil prices.
Reference band from last week
FTSE 250 index
23,975.02
+0.73% over the week; marks third consecutive weekly advance.
Interest Rate
3.75%
Decided by a 6–3 majority on July 30.
Flash composite Purchasing Managers' Index
52.1
An increase from 49.3 in June; final figures expected Wednesday.
Q2 earnings in Europe
up 20.8%
Latest projection; rises 10.3% excluding energy.
Upcoming test
July’s gains extended further than the top oil and mining stocks. The FTSE 250 rose 4.18% over the month, outperforming the FTSE 100. This suggests improved breadth.
The rebound remains tilted toward the energy sector. UK energy stocks gained over 15% in July. In Europe, second-quarter estimated profit growth drops from 20.8% to 10.3% if energy is excluded.
Next week brings key indicators. HSBC assesses banks and lending. BP examines the oil sector. Glencore reports on metals. Diageo evaluates consumer appetite.
Price shift in July
Standard scale at 16%. Energy displays at its verified minimum of 15%.
Second-quarter earnings forecast
Forecast for annual profit increase. The difference indicates the extent to which energy is driving this season.
Looking ahead: August 3–7
Mon • Aug 3
UK manufacturing PMI final reading. The preliminary figure stood at 52.8, remaining above the 50 threshold that indicates expansion rather than contraction.
Tuesday • Aug 4
HSBC Holdings (LON:HSBA) reports interim results, while BP (LON:BP) posts its second-quarter results. Investors will focus on factors such as bank margins, credit quality, oil cash flow, and shareholder returns.
Wed • Aug 5
UK final services and composite PMIs; Glencore (LON:GLEN) first-half earnings. Preliminary data showed the services PMI at 51.8 and the composite PMI at 52.1.
Thu • Aug 6
UK construction PMI and preliminary fiscal 2026 results from Diageo (LON:DGE). Diageo is expected to provide a strategy update as well.
Fri • Aug 7
US July jobs data due at 13:30 BST. A significant surprise may impact sterling, gilt yields, oil, and FTSE shares with global exposure.
FTSE 100 outlook
Finish above 10,989.45
Consistent strength in banks, energy, materials, and consumer stocks would indicate wider backing for a fresh peak.
Maintain 10,829.34–10,989.45
The index steadies between Friday’s low and its record high, with mixed earnings balancing robust commodity cash flow.
Drop under 10,829.34
The subsequent recorded reference stands at 10,736.23. A downturn in oil, rising gilt yields or disappointing guidance could increase the threat.
Risks involved
The primary market threat comes from concentrated energy exposure. A sudden drop in oil prices could erase a key contributor to July’s rise. Interest rate forecasts are also influential, with markets heading into the weekend anticipating at least one Bank of England hike before year-end.
Investor perspective
The FTSE 100 could reach a new high next week. More convincing momentum would come from widespread advances following updates from HSBC, BP, Glencore and Diageo. If oil stocks alone drive the increase, the index may be more vulnerable to a pullback.
Market data provided is not tailored investment guidance. Scenario figures represent observed market benchmarks, not intended price objectives. Flash PMI numbers remain initial estimates until official final figures are published.
