London close: Energy, financial plays help lift markets
By Josh White
Date: Thursday 23 Oct 2025
(Sharecast News) - London stocks advanced on Thursday, lifted by gains in energy and commodity shares after the United States imposed fresh sanctions on Russian oil majors, while investors weighed global trade tensions ahead of high-level talks between Washington and Beijing.
The FTSE 100 rose 0.67% to 9,578.57, while the FTSE 250 gained 0.59% to 22,361.41.
Sterling weakened, slipping 0.28% against the dollar to $1.3319 and 0.32% versus the euro to €1.1467.
Patrick Munnelly at TickMill noted that "the FTSE 100, London's leading stock index, soared to a record high during intraday trading on Thursday, buoyed by a surge in oil stocks and strong performances from major companies like the London Stock Exchange Group (LSEG) and Rentokil."
Oil giants BP and Shell were among the top performers after the US announced new sanctions targeting Russia's state-owned Rosneft and private producer Lukoil, marking the first direct measures against Russian companies by the Trump administration.
The move intensified geopolitical tensions and sent oil prices higher.
Speaking after a meeting with Nato secretary-general Mark Rutte, US president Donald Trump said he continued to have "good conversations" with Russian president Vladimir Putin but added that "they don't go anywhere".
He said, "These are tremendous sanctions. They're big, these are against their two big oil companies and we hope they won't be on for long. We hope that the war will be settled."
Meanwhile, concerns over global trade persisted after reports that Washington was considering new curbs on exports to China involving goods made with US software.
China's vice-premier He Lifeng is due to meet US officials in Malaysia between 24 and 27 October for a new round of high-level negotiations.
"US-China relations don't look to be in the best place ahead of Trump's visit to Asia," said AJ Bell investment director Russ Mould.
"Talk of new restrictions on goods that either contain or are made with US software being sold to China would suggest the Trump administration is playing hard ball, sending a message to Xi Jinping that the US will not be pushed around."
UK manufacturing still struggling, consumers more willing to spend
In economic news, UK manufacturing continued to struggle in October as weak demand hit output and new orders, while consumer confidence showed signs of seasonal resilience ahead of Christmas despite lingering economic uncertainty.
According to the latest Industrial Trends Survey from the Confederation of British Industry, output volumes fell over the three months to October at a net balance of -16%, with 14 of 17 industrial sub-sectors reporting declines.
New orders dropped at their fastest pace since mid-2020, with domestic and export demand both weakening sharply.
Meanwhile, British consumers appeared more willing to spend ahead of the festive season, the British Retail Consortium reported.
Its latest sentiment monitor showed expectations for total spending over the next three months rose to 18 in October, up four points from September, with retail-specific spending expectations also climbing.
Inflation held steady at 3.8% in September, while food prices eased to 4.5%, fuelling hopes of another Bank of England rate cut after three reductions this year to 4%.
Energy, financial plays lead gains
In equities, energy and financial stocks led the gains in London on Thursday, supported by stronger oil prices and upbeat corporate updates, while several fund managers and industrial firms slipped following mixed trading statements.
BP climbed 3.69% and Shell rose 2.88% as Brent crude prices advanced after the US imposed new sanctions on Russian oil companies.
Mid-cap energy names also benefited, with Ithaca Energy up 5.17%, Harbour Energy gaining 5.6% and Diversified Energy rising 3.25%.
"Among individual stocks, LSEG surged 6.7% after revealing plans to sell a 20% stake in its post-trade services business," said Munnelly.
"The exchange operator also surprised investors with a £1bn share buyback programme and posted third-quarter results that exceeded expectations."
Rentokil Initial jumped 8.32% after confirming it remained on track to meet full-year expectations following an "encouraging" third quarter, highlighting improved trading in North America.
"Rat-catcher Rentokil surged after saying its US operations were in a much better place," said Mould.
"The company had previously suffered from slower than expected growth in North America, causing investors to question if the 2022 acquisition of US pest control firm Terminix was ill-timed.
"A new game plan appears to be working, and Rentokil is now more upbeat on the region."
Lloyds Banking Group added 1.16% even after its quarterly profit fell 36% due to an £800m charge linked to the motor finance scandal.
Mould said: "The car finance scandal may have sent profit into reverse but there was enough underlying good news from Lloyds to keep the share price ticking over.
"Given the company had already disclosed an extra £800m hit linked to mis-selling, there was nothing new to shock investors. In fact, pre-tax profit was better than feared."
He added that "among the key tenets of this strategy is an expanding presence in wealth management.
"To this end, Lloyds recently assumed full control of its Schroders Personal Wealth joint venture which is set to be rebranded as Lloyds Wealth."
Unilever edged up 0.69% as it reiterated its full-year outlook, reporting 3.9% underlying turnover growth in the third quarter driven by its key 'power brands'.
Mould noted: "Underlying sales growth came in ahead of expectations although there may be some disappointment that the company has left full-year guidance unchanged despite better-than-expected third-quarter trading.
"A strong showing from its personal care and beauty product roster helped Unilever put its best face on."
On the downside, St James's Place fell 1.63% and Schroders lost 1.85% after releasing quarterly updates.
"Shares of St James's Place fell by 4% to 1,299p, making it the worst performer on the FTSE 100," said Munnelly.
"The British fund manager indicated that fourth quarter flows might be weaker than in the third quarter, due to an uncertain consumer landscape and lack of clarity regarding the autumn government budget."
Renishaw dropped 2.29% as it said currency headwinds hurt first-quarter performance, particularly across the EMEA region.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 9,578.57 0.67%
FTSE 250 (MCX) 22,361.41 0.59%
techMARK (TASX) 5,579.76 -0.16%
FTSE 100 - Risers
Rentokil Initial (RTO) 441.20p 8.32%
London Stock Exchange Group (LSEG) 9,346.00p 7.18%
Fresnillo (FRES) 2,190.00p 5.29%
BP (BP.) 436.95p 3.69%
Shell (SHEL) 2,840.50p 2.88%
Burberry Group (BRBY) 1,275.50p 2.70%
Weir Group (WEIR) 2,926.00p 2.45%
Babcock International Group (BAB) 1,214.00p 2.27%
Experian (EXPN) 3,638.00p 2.22%
Centrica (CNA) 178.60p 2.17%
FTSE 100 - Fallers
easyJet (EZJ) 479.50p -2.80%
Ashtead Group (AHT) 5,292.00p -2.54%
Schroders (SDR) 372.00p -1.85%
Relx plc (REL) 3,448.00p -1.71%
St James's Place (STJ) 1,331.00p -1.63%
Legal & General Group (LGEN) 238.40p -1.57%
Entain (ENT) 811.40p -1.53%
Diageo (DGE) 1,826.00p -1.35%
Smith & Nephew (SN.) 1,377.00p -1.33%
InterContinental Hotels Group (IHG) 9,202.00p -1.24%
FTSE 250 - Risers
Harbour Energy (HBR) 215.00p 5.60%
Ithaca Energy (ITH) 201.50p 5.17%
International Workplace Group (IWG) 237.20p 4.31%
Ninety One (N91) 226.00p 3.96%
BlackRock World Mining Trust (BRWM) 664.00p 3.75%
Trustpilot Group (TRST) 207.00p 3.55%
RHI Magnesita N.V. (DI) (RHIM) 2,135.00p 3.39%
Oxford Biomedica (OXB) 592.00p 3.32%
Diversified Energy Company (DEC) 982.00p 3.25%
Anglo-Eastern Plantations (AEP) 1,325.00p 3.12%
FTSE 250 - Fallers
Sequoia Economic Infrastructure Income Fund Limited (SEQI) 77.20p -3.02%
AJ Bell (AJB) 541.50p -2.52%
SSP Group (SSPG) 161.20p -2.30%
Renishaw (RSW) 3,630.00p -2.29%
Wizz Air Holdings (WIZZ) 1,105.00p -2.21%
Supermarket Income Reit (SUPR) 80.30p -1.83%
Hill and Smith (HILS) 2,165.00p -1.81%
HICL Infrastructure (HICL) 120.40p -1.79%
Genus (GNS) 2,560.00p -1.54%
Morgan Advanced Materials (MGAM) 206.50p -1.45%
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN