The FTSE 100 index traded in a narrow range this week as investors weighed escalating tensions between the UK and Iran, a busy US earnings season, and a slate of domestic economic releases. July data on employment, inflation, and retail sales are being closely watched for clues on the Bank of England's next policy move.
Next week brings a wave of corporate results from some of the index's heavyweight names, including major banks, pharmaceutical firms, and airlines. Here's a look at the key stocks to watch.
Barclays, Lloyds, NatWest, and Standard Chartered
UK banking stocks have posted solid gains year-to-date, with emerging-market-focused lenders like Standard Chartered and HSBC leading the pack, rising 15% and 28% respectively. Lloyds, Barclays, and NatWest have advanced 13%, 8.3%, and 2% over the same period.
These gains face a test next week as the banks report quarterly earnings. Barclays kicks off on Tuesday, followed by Standard Chartered on Wednesday. Lloyds and NatWest will release results on Thursday and Friday, respectively. Analysts expect the sector to benefit from elevated interest rates and relatively low loan defaults, mirroring strong recent reports from US and European peers such as Goldman Sachs, Unicredit, BNP Paribas, and Morgan Stanley.
Barclays is likely to draw particular attention due to its dual retail and investment banking model. Its trading and advisory divisions are expected to benefit from increased M&A, IPO, and debt issuance activity. All four banks will also react to the Bank of England's interest rate decision on Thursday.
British American Tobacco
British American Tobacco has fallen nearly 10% from its 2024 high after announcing plans to cut 9,000 jobs as part of a shift toward artificial intelligence. The cuts include 5,500 direct roles and 3,500 positions at third-party firms like Accenture, with expected annual savings of $798 million by 2028.
The company's most recent trading update showed strength in its combustibles business, particularly in the US, Brazil, and Turkey. Velo nicotine pouch volumes rose 5.7 percentage points, while Vuse e-cigarettes continued to gain market share. The upcoming results will provide further detail on performance and outlook as traditional cigarette volumes decline.
AstraZeneca and GSK
UK pharmaceutical stocks have underperformed the broader market this year. AstraZeneca shares are down 7.5% year-to-date, though up 21% over the past 12 months. GSK has gained 4.24% in 2024 and 40% over the last year.
Both companies report next week: AstraZeneca on Monday and GSK on Tuesday. AstraZeneca's release follows EU approval for its breast cancer drug Etcamah, which has already been cleared in the UAE, Japan, and Saudi Arabia. A US review is pending. However, the company faces a setback after Wainua, a rare disease drug, failed a Phase 3 trial. With a target of $30 billion in annual sales, AstraZeneca has limited room for error.
IAG
International Airlines Group (IAG), parent of British Airways and Aer Lingus, will report on Friday amid rising geopolitical tensions between the US and Iran. The stock has dropped 14% from its 2024 high as jet fuel prices have climbed. The earnings release will offer insight into fuel costs and overall business performance.
Other FTSE 100 companies reporting next week include Unilever, Haleon, London Stock Exchange Group, and Anglo American. For more on market movers, see our coverage of FTSE 100 Watch: Airtel Africa, BT Group, Compass Group in Focus Next Week and Kospi Drops 4% as Samsung, SK Hynix Rout Deepens; Barclays Sees Semiconductor Rebound.
This article is for informational purposes only and does not constitute financial advice.
