FTSE 100 hits record 10,950 as Rolls-Royce and miners rally

Key Takeaways:

• FTSE 100 gained 0.4% to an intraday record of 10,950.32
• Rolls-Royce jumped 5% after raising operating profit guidance
• Mining stocks led gains as commodity prices strengthened

The FTSE 100 rose 0.4% to a record 10,950.32 as Rolls-Royce shares surged and mining stocks gained before the Bank of England's monetary policy decision. The midcap FTSE 250 added 0.4%.

"In Civil Aerospace, where we continued to improve our aftermarket profitability, we have also effectively eliminated aircraft on ground, providing a significant operational benefit to our customers," Tufan Erginbilgic, chief executive officer of Rolls-Royce Holdings, said in a statement.

Rolls-Royce was the best-performing stock in the index, jumping more than 5% to 1,462p after reporting first-half revenue of 11.27 billion pounds, up from 9.05 billion pounds a year earlier. Operating profit rose to 2.5 billion pounds from 1.73 billion pounds, while the company raised its full-year guidance to between 4.7 billion pounds and 4.9 billion pounds in operating profit, with free cash flow expected between 3.8 billion pounds and 4 billion pounds. Mining stocks also advanced, tracking firmer commodity prices, as industrial and materials shares added to the broader rally.

The record high comes as investors weigh escalating tensions in the Middle East alongside expectations for the Bank of England's upcoming rate decision. The BoE is widely expected to hold rates steady, though traders will scrutinize the statement for any shift in forward guidance. The FTSE 100's breakout above its prior peak signals broad confidence in UK equities, particularly in the industrial and commodity sectors, which could attract further capital inflows into London-listed stocks and related exchange-traded funds.

This article is for informational purposes only and does not constitute investment advice.