𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

London’s blue chip share index has hit new record highs as a slew of better-than-expected results from FTSE 100 stalwarts helped offset pressures from the ongoing Iran war.

The FTSE 100 Index has notched up record intraday highs in the past two days, reaching 10979.24 at one stage on Thursday, and looks set to close above the previous closing peak of 10,910.55 seen on February 27, the day before the Middle East conflict began.

Britain’s top share index was sent sharply lower when the US and Israel began their strikes against Iran on February 28, which sent oil and energy markets into turmoil.

But the FTSE has been gradually recovering lost ground, with higher oil prices boosting the likes of FTSE heavyweights BP and Shell, with defence stocks such as BAE Systems also benefiting from the focus on ramping up defence spending globally.

Indices across Europe also made gains on Thursday, while Wall Street moved higher in early trading.

It comes despite a volatile technology sector on fears over the AI bubble bursting, which has weighed on Wall Street IT stocks in recent months.

Kathleen Brooks, research director at XTB, said: “In contrast to the turmoil in tech-heavy spaces, the FTSE 100 has surged to a record high, and is higher by 4.5% in the past month.

“Its mix of energy stocks, defence names and consumer staples are attractive in the current environment.”

She added that indicators also suggest that there could be “further upside for the UK index as investors rotate away from global tech names”.

An earnings guidance upgrade from engine maker Rolls-Royce helped spur on the FTSE to its new record on Thursday, with shares up 6%, while fellow defence giant BAE Systems likewise hiked its full-year outlook, which saw the stock rise 2%.

Shell also delivered better-than-forecast second quarter results, though it failed to hold on to early session gains.

It was not all good news for firms reporting half-year figures, with pest control group Rentokil Initial seeing its stock market value plunge by more than a fifth after it warned over weaker residential demand in North American – its biggest market.

Rentokil kept its outlook for the year intact, but this did not stop shares plunging 21%.