UK equities opened higher, with sentiment improving after AI-related concerns that pressured software stocks in the previous session began to fade. Strength in oil majors, alongside company-specific news from GSK plc (LSE:GSK) and takeover target Beazley PLC (LSE:BEZ), helped lift the benchmark index.
Energy stocks provided the largest boost to the FTSE 100, as BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL) moved higher in line with rising crude prices. Oil markets were supported by escalating tensions between the US and Iran, underpinning gains across the sector. By 0934 GMT, the blue-chip index was up 0.6%, while sterling strengthened 0.1% against the dollar to $1.3710. Elsewhere in Europe, Germany’s DAX slipped 0.5%, while France’s CAC 40 rose 0.4%.
In UK stock-specific news, Beazley shares jumped 8.5% after the insurer received a takeover approach from Zurich Insurance Group valuing the business at about £8 billion. Zurich’s sixth proposal offers 1,335 pence per share, made up of 1,310 pence in cash plus permitted dividends of up to 25 pence for the year ended December 31, 2025, representing a 4.2% increase on its prior bid.
GSK was also in focus after the drugmaker outlined a slower pace of sales growth for 2026. The company expects revenue to rise between 3% and 5% on a constant-currency basis, compared with 7% growth in 2025, while core earnings per share are forecast to increase by 7% to 9%. Vaccine sales are projected to range from a low single-digit decline to “stable.” GSK shares rose more than 1% following the update.
Watches Of Switzerland Group PLC (LSE:WOSG) reported strong third-quarter trading across both the US and UK during the Holiday period, noting that demand for its core luxury brands continues to outstrip supply in both markets.
DCC plc (LSE:DCC) said it delivered solid operating profit growth in its fiscal third quarter, supported by organic growth and the initial contribution from its Austrian acquisition FLAGA, while reiterating its full-year outlook for good profit growth.
Meanwhile, SSE PLC (LSE:SSE) maintained its guidance for 2025/26 adjusted earnings per share of 144–152 pence. The midpoint of the range sits around 2% below market consensus, which the company attributed to mixed weather conditions affecting renewable generation, despite otherwise strong operational performance.
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