London’s FTSE 100 traded higher at midday on Thursday, 12 November, as positive corporate updates from Rolls-Royce, Burberry and housebuilder Persimmon lifted investor sentiment, while UK economic growth accelerated to its fastest quarterly pace in two and a half years.
By midday, the FTSE 100 had gained 0.33% to 10,870.80 points, up about 35 points, while the FTSE 250 advanced 0.22% to 24,979.99.
Healthcare and industrial companies provided support for Britain’s blue-chip index, helping offset weakness among energy producers and mining shares.
Rolls-Royce climbed 2.8% after the aerospace and defence group reaffirmed its full-year financial guidance and announced a £1.5 billion share buyback programme.
The announcement supported the wider aerospace and defence sector, which gained approximately 1.4% during the morning session.
Healthcare heavyweights AstraZeneca and GSK advanced 0.9% and 1.1%, respectively, adding further support to the FTSE 100.
Burberry surged 9.4% after the British luxury fashion house reported second-quarter sales and profits ahead of market expectations.
The stronger-than-anticipated performance provided encouragement for investors following a challenging period for the global luxury goods sector.
Housebuilder Persimmon jumped 6.2% after forecasting a further increase in housing completions during 2027.
The update helped lift the broader housebuilding sector by 3.9%, despite continuing uncertainty surrounding mortgage affordability and borrowing costs.
The gains came as the latest Royal Institution of Chartered Surveyors survey pointed to ongoing weakness in the UK housing market.
The RICS house price balance declined to -36 in October from -34 in September, while the agreed sales balance weakened to -24 from -18.
The outlook for sales over the next 12 months also deteriorated to -17, highlighting subdued confidence among property market professionals.
B&M European Value Retail was the standout performer among UK mid-cap stocks, surging 18.3% after the discount retailer indicated that annual profit could increase by as much as 16%.
The outlook provided reassurance about the retailer’s earnings prospects amid pressure on household spending and competition across the discount retail sector.
However, not all FTSE 100 companies participated in the rally.
Shell and BP both declined approximately 0.6%, tracking weaker crude oil prices as investors continued to assess the outlook for global energy demand and developments in the Middle East.
Endeavour Mining fell 6.3% after indicating that full-year gold production was likely to finish at the lower end of its previous guidance range.
Industrial metals producers also weakened, with the sector declining approximately 0.6% as copper and other base metal prices retreated.
Investors were also digesting the latest official UK economic growth figures.
Britain’s economy expanded by 0.7% in the third quarter of 2026, its strongest quarterly performance in approximately two and a half years.
Growth was supported by stronger services activity and demand associated with artificial intelligence-related investment.
The figures provided a positive indication of economic activity following a period of uncertainty surrounding inflation, interest rates and household spending.
However, stronger growth could also influence expectations for the Bank of England’s future monetary policy decisions, particularly if inflationary pressures remain elevated.
The FTSE 100’s midday advance reflected a strong response to corporate earnings and trading updates, with Burberry, Rolls-Royce, Persimmon and B&M among the principal beneficiaries.
While the latest GDP figures suggest improving economic momentum, weakness in housing market surveys and pressure on commodity producers highlight the uneven nature of the recovery.
Attention will now turn to whether London’s leading indices can maintain their gains through the afternoon session, as investors continue evaluating corporate earnings, the outlook for UK interest rates and developments across global markets.
