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FTSE 100 dips as stronger pound, mixed earnings weigh
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FTSE 100 dips as stronger pound, mixed earnings weigh
Jul 30, 2026 10:07 AM

* Rolls-Royce jumps after raising annual outlook

* Rentokil slumps after flagging weakness in North America

* Bank of England holds interest rates

(Updates with closing prices)

July 30 (Reuters) - London's FTSE 100 closed slightly lower

on Thursday after the Bank of England decided to keep interest

rates on hold and mixed earnings reports weighed on the

blue-chip index.

The FTSE 100 index closed down 0.1% at 10,897.27

points, pulling back from an intraday record high earlier in the

session. The UK midcap FTSE 250 rose 0.3%

* The Bank of England kept interest rates on hold as it

waits to see how the Iran war affects inflation pressures,

although the renewal of hostilities prompted a third policymaker

to back a rate hike.

* The pound initially fell after the BoE's decision

but gained ground as the day wore on against a broadly softer

dollar.

* The FTSE 100 is made up of international companies that

draw a large part of their revenue in dollars, making them

vulnerable to currency fluctuations.

* The U.S. Federal Reserve left interest rates unchanged on

Wednesday even as chief Kevin Warsh pledged an unwavering

commitment to bring inflation down, a message that left markets

confused about what he was prepared to do.

* Precious and industrial metal miners

gained 1.9% and 3%, respectively, tracking gains

in copper prices, and steady prices of bullion.

* Aerospace and defence firms were the top

sectoral gainers following a 6% boost to Rolls-Royce shares

after the engineering company raised its full-year outlook far

beyond market expectations.

* Paper and packaging firm Mondi ( MNODF ) surged 10.9%, its

sharpest one-day jump since August 2022 after first-half results

which powered the FTSE 350 General Industrials

sector to its highest level since March 2025.

* On the flip side, industrial support services

slipped, weighed down by a 20.6% slump in

Rentokil after the pest control firm flagged weakness in

its North America business.

* Energy stocks dipped 0.1% despite Brent

crude topping $90 a barrel after the U.S. military

struck dozens of targets in Iran.

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