London’s FTSE 100 moved slightly higher on Tuesday, supported by steady trading in the pound and positive momentum across other major European bourses.
By 11:30 GMT, the blue-chip benchmark was up 0.2%, while GBP/USD held flat at 1.35. On the continent, Germany’s DAX climbed 0.3% and France’s CAC 40 added close to 1%.
Kingfisher lifts profit forecast on strong UK performance
Kingfisher PLC (LSE:KGF) upgraded its full-year profit guidance after posting a 10.2% rise in first-half earnings, fueled by solid demand in its UK operations.
The home improvement group—owner of B&Q and Screwfix in Britain and Castorama and Brico Depot in France and other markets—said it now expects adjusted pretax profit at the “upper end” of its £480 million to £540 million outlook range. That compares with £528 million reported in the 2024/25 fiscal year.
Kingfisher shares surged over 19% following the announcement.
Smiths Group tops guidance with stronger margins
Elsewhere, Smiths Group PLC (LSE:SMIN) posted annual results ahead of expectations. Headline operating earnings for the year ending July 31 rose to £580 million, up from £526 million last year.
Operating margins expanded to 17.4% versus 16.8% previously, placing them at the upper limit of the company’s forecast. Group revenue grew to £3.34 billion from £3.13 billion, an 8.9% organic increase.
Broader economic signals mixed
A recent survey showed UK businesses are losing momentum and confidence ahead of the November budget from Finance Minister Rachel Reeves, with hiring continuing to slow.
S&P Global’s flash UK Composite PMI slipped to 51.0 in September from 53.5 in August, hovering just above the 50 mark that separates growth from contraction.
On monetary policy, Bank of England Chief Economist Huw Pill said at an event in Switzerland that the central bank may need to keep rates restrictive given inflation’s persistence. He noted that while headline inflation is easing, the underlying trend has yet to return to target levels.
Meanwhile, the OECD raised its 2025 growth forecast for the UK by 0.1 percentage points to 1.4%, projecting Britain will be the second-fastest growing G7 economy this year behind only the U.S. Growth is expected to slow to 1% in 2026.
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