The FTSE 100 index is hovering near its all-time high, buoyed by a rebound in energy stocks and a steady interest rate decision from the Bank of England. On Thursday, the index climbed to 10,816 points, up more than 2% from its lowest level this month, as investors digested the central bank's decision to hold rates steady.
Among the most-watched blue-chip shares are BP and Shell, which have rallied sharply this year on the back of elevated crude oil prices. Shell's shares have surged over 40% since January to 3,571p, while BP has climbed to 564p from a year-to-date low of 398p. The rally is largely driven by geopolitical tensions, particularly the US-Iran conflict, which has pushed Brent crude above $100 per barrel. Brent peaked at $109.9 this week before pulling back to $103.7, while West Texas Intermediate (WTI) reached $106.70 before easing to $96.
The higher oil prices have translated into record earnings for the two energy majors. Shell reported second-quarter revenue of $94.7 billion, up from $64.5 billion a year earlier, with adjusted earnings more than doubling to $9.84 billion. BP generated over $70 billion in revenue, with operating profit reaching $5.7 billion. Analysts expect oil prices to climb further, potentially reaching $120 or more, which could extend these gains.
Scottish Mortgage Investment Trust rebounds
Scottish Mortgage Investment Trust has recovered from its July low of 1,297p to trade around 1,520p, its highest level since June. The rebound is tied to a rally in its key holdings, particularly SpaceX, whose shares have jumped 47% from their yearly low to $154.9. SpaceX is also benefiting from a reported $1 billion-per-month data center deal, and its upcoming Starship orbital test on September 22 could provide further momentum.
Investors are also watching for a potential IPO of Anthropic, which could be valued at over $2 trillion, a development that might boost Scottish Mortgage's portfolio.
Rolls-Royce forms bullish pattern
Rolls-Royce Holdings has bounced back from 1,400p to 1,479p, forming a bullish flag pattern that often signals further upside. The company has raised its annual forecast after a strong first half, with revenue jumping to £11.27 billion from £9 billion and operating profit exceeding £2.53 billion. Demand for its products remains steady, supporting the positive outlook.
Lloyds Bank reacts to BoE decision
Lloyds Bank shares have edged up to 112.2p from a low of 107.65p, as the Bank of England's decision to hold rates steady was seen as supportive. The central bank left the door open for a potential rate hike later this year, which would benefit Lloyds as the UK's largest mortgage lender. Higher interest rates typically improve banks' net interest margins.
Other FTSE 100 names to watch include Vodafone, BT Group, Glencore, and Anglo American, as investors continue to assess the impact of global economic conditions on these sectors.
This article is for informational purposes only and does not constitute financial advice.
