London equities strengthened in the afternoon session on Thursday as investors parsed a mix of corporate results, many of which beat expectations. At 12:31 GMT the FTSE 100 was up 0.8%, while the British pound eased 0.04% against the dollar to trade at 1.3801. Across the Channel, Germany's DAX fell 0.9% and France's CAC 40 advanced 0.5%.
Earnings and company updates drove the market backdrop
Among the notable corporate disclosures, Lloyds Banking Group reported a better-than-forecast annual profit before tax and raised its medium-term returns goal. The lender posted a 12% increase in profit before tax to 6.7 billion, topping analysts' average estimate of 6.4 billion. Lloyds also upgraded its profitability target, now aiming for a return on tangible equity of above 16% in 2026 versus a prior target of 12% in 2025. The bank said higher income outweighed nearly billion in compensation charges related to mis-sold motor finance products.
Investment firm 3i Group saw its shares jump after reporting strong performance at Action, its largest holding. 3i rose 12.3% as Action delivered net sales of 6 billion and operating EBITDA of .37 billion for the 52 weeks to December 28, representing year-over-year increases of 16% and 14% respectively. Action's like-for-like sales climbed 4.9% for the year, although that pace was softer than the 10.3% growth recorded in 2024.
Miners registered notable gains. Antofagasta advanced about 9.8% after the Chilean copper producer reported stronger-than-expected fourth-quarter sales and costs, with fourth-quarter copper sales of 201,000 tonnes that exceeded analyst estimates and an upgraded 2026 gold production guidance. Glencore rose more than 4.2% following an update in which the mining and commodities trading group said it expects full-year 2025 marketing adjusted earnings before interest and tax to land around the midpoint of its upgraded guidance range, helped by a sharp recovery in second-half copper production that offset earlier weaker output.
In aviation and travel, Wizz Air's shares climbed over 9.2% after third-quarter results beat expectations and the carrier said it was targeting a break-even outcome for its fiscal year. The airline reported a third-quarter operating loss of 24 million, in line with estimates. Specialist travel group Saga jumped 13.8% after saying it expects to report an underlying profit before tax ahead of the prior year, with its Ocean Cruise business cited as a key driver. Ocean Cruise achieved a 93% load factor and raised per diem rates by 10% to 394.
Gaming operator Rank Group added 1.1% after reporting revenue and profit growth across all businesses in the first half of fiscal 2026. The company said like-for-like net gaming revenue was 419.8 million for the six months ended December 31, 2025, up 6% year-over-year.
Not every report was positive. Ocado shares tumbled around 11.4% after the online grocery and technology group said its Canadian partner Sobeys will close the company's robotic warehouse in Calgary, citing slower-than-expected growth in Alberta's online grocery market. EasyJet registered a widened first-quarter loss of 93 million compared with a 61 million loss in the prior year period; the airline said investments in new routes at Milan Linate and Rome Fiumicino airports weighed on results, and the outcome missed the analyst expectation of an 80 million loss.
Market implications and sector impacts
- Financials - Lloyds' stronger profit and raised target for return on tangible equity supported the banking sector within the FTSE 100.
- Materials and mining - Positive updates from Antofagasta and Glencore helped lift commodity-linked stocks, particularly copper producers.
- Consumer retail and travel - Mixed outcomes: 3i's gain on Action and Saga's improved cruise metrics contrasted with weakness at Ocado and EasyJet, reflecting uneven recovery dynamics in online grocery and aviation.
What to watch next
Investors will likely continue to weigh company-level earnings and operational updates against broader sentiment in European markets, with particular attention to how production recoveries and demand patterns in mining and retail shape near-term earnings trajectories. The pound's stability near 1.38 against the dollar may also temper currency-related volatility for internationally exposed firms.