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UK shares initially climbed on Wednesday but later reversed course as investors digested a mixed set of corporate earnings, with attention turning to chip giant Nvidia's results due later in the day. The FTSE 100 has risen 3% this month, buoyed by trade agreements between the United States, the UK, and China, alongside the suspension of 50% tariffs on the European Union. The International Monetary Fund has revised its growth forecast for Britain to 1.2%, up from April's estimate of 1.1%, with further growth projected at 1.4% by 2026, despite ongoing challenges from U.S. tariffs. Aerospace and defence stocks led the gains, with Rolls-Royce emerging as one of the top performers on the blue-chip index, following U.S. President Donald Trump's recent threats of additional sanctions against Russia.

Single Stock Stories & Broker Updates:

• Rentokil Initial shares rose 1.1% to 358.2p, making it a top gainer on the FTSE 100, which is up 0.1%. The company will sell its French workwear, flat linen, and clean room business to H.I.G. Capital for approximately 410 million euros ($463.71 million). This sale will streamline the company into a pest and hygiene business. It expects net cash proceeds of about 370 million euros to reduce debt and pursue bolt-on acquisitions. The stock is down 11.6% year-to-date.

• Kingfisher shares fell 5.4% to 279.7p, making it the biggest loser on the FTSE 100, which is up 0.2%. The home improvement retailer retained its full-year guidance for 2025/26. Investors found the lack of a pretax profit upgrade from JPM disappointing, with like-for-like sales rising 1.8%, below expectations. Among 14 analysts, three rated the stock "buy," seven "hold," and four "sell," with a median price target of 277p. Despite the drop, the stock is up 12.5% year-to-date.

• Shares of Pets At Home rise 3.4% to 271.2p, the highest since November 2024. The company updates its outlook for single-digit consumer revenue growth and faster pre-tax profit growth than sales. Jefferies views this as a conservative outlook, with annual underlying pre-tax profit meeting expectations despite a challenging Q4. The stock is up 30.7% YTD.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 8700

• Primary support 8500
• Below 8500 opens 8250
• Primary objective 8900
• Daily VWAP Bearish
• Weekly VWAP Bullish

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