London's blue-chip index edged higher on Thursday morning as the global bond-market sell-off paused and a weaker dollar supported sterling and gold. The FTSE 100 was up 14 points, or 0.13%, at 10,770.84 shortly before 11am. The FTSE 250 added 0.08% to 24,343.88, while the AIM All-Share gained 0.71%.
Government bond markets steadied following several sessions of heavy selling. Germany’s two-year and 10-year yields declined for the first time in seven sessions, while Australia’s 10-year yield eased from the 15-year high reached on Wednesday. French borrowing costs remained elevated, however, as concerns about the country’s fiscal position continued to weigh on its government bonds.
Gold climbed as the dollar weakened and bond yields eased. Spot bullion gained 1.1% to approximately $4,436 an ounce, while gold futures rose 1.5% to around $4,483. Sterling advanced 0.09% to approximately $1.3499. The movement was attributed mainly to broad dollar weakness following a sharp rise in the Japanese yen rather than the morning’s UK economic data.
Brent crude moved back towards $97 a barrel as the continuing US-Iran conflict maintained concerns about disruption to energy shipments through the Strait of Hormuz.
Among blue-chip stocks, Airtel Africa gained 3.81% and Vodafone advanced 3.39%. Metlen Energy & Metals rose 2.19%, while London Stock Exchange Group and Experian added 1.91% and 1.57%, respectively. Burberry led the FTSE 100 fallers with a 2.42% decline. Admiral Group and Aviva lost 1.83% and 1.72% as their shares traded without entitlement to their latest dividends.
The standout movement came from the FTSE 250, where Hilton Food Group surged 16.17% after raising its full-year adjusted profit-before-tax forecast to between £66 million and £71 million from £60 million to £65 million previously. The company attributed the upgrade to the removal of losses from its Dalco business and favourable currency movements. First-half adjusted profit before tax of £32.8 million was also ahead of expectations.
Activity across Britain’s dominant services sector expanded at its fastest pace since April during August, while confidence among businesses reached its highest level since February. The final S&P Global UK Services PMI rose to 52.5 from 52.1 in July, marking a second consecutive month of expansion. The reading was slightly below the preliminary estimate of 52.8 but remained comfortably above the 50 threshold separating growth from contraction. The composite PMI, which includes the smaller manufacturing sector, also increased to 52.5 from 52.2, recording its strongest reading since April. "August data highlighted improving operating conditions across the UK service economy," said Tim Moore, economics director at S&P Global Market Intelligence. Business and consumer spending improved after declining during the second quarter, while employment fell at its slowest rate since October 2025. Growth in new work remained subdued, however, with the corresponding index edging down to 50.7 from 50.8. The survey also contained a potential warning for the Bank of England. More companies reported increasing their prices, while input-cost inflation also accelerated following a slowdown in both measures during July.
