FTSE 100 extends record run on earnings optimism

Britain's FTSE 100 index extended its record run on Wednesday as a strong earnings update from Reckitt Benckiser and gains in commodity stocks offset losses in Burberry and Lloyds Banking Group. The blue-chip FTSE 100 rose 0.5% to 8,086.77 points, topping the previous session's peak of 8,076.52.

Britain's FTSE 100 index extended its record run on Wednesday as a strong earnings update from Reckitt Benckiser and gains in commodity stocks offset losses in Burberry and Lloyds Banking Group.

The blue-chip FTSE 100 rose 0.5% to 8,086.77 points, topping the previous session's peak of 8,076.52. The benchmark was also on track for its sixth consecutive session of gains, the first such winning streak since August 2023.

"Sentiment about the UK does seem to be shifting. Investors are waking up to the fact that good companies in the UK are cheap and maybe there is another option," said Danni Hewson, head of financial analysis at AJ Bell. Reckitt Benckiser jumped 5.5%, on track for its biggest percentage gain in more than two years, after its quarterly like-for-like sales growth beat estimates and the consumer goods group said it was on track to meet full-year revenue and profit targets.

"Reckitt has walked a fine line, but a good clever line in order to keep its products at a level where people find them stretchable but affordable," Hewson added. Shares of mining giants such as Rio Tinto, Antofagasta and Glencore rose between 1.7% and 3.4% as prices of most metals climbed on the back of a weaker U.S. dollar.

On the flipside, Burberry fell 2.1%, the worst performer on the FTSE 100, after French rival Kering flagged a 40-45% plunge in profit in the first half of this year. Lloyds Banking Group dipped 1.1% after the country's largest mortgage lender reported a 28% slump in quarterly pretax profit as rising costs, peaking interest rates and intensifying competition in the mortgage market hurt income.

The mid-cap FTSE 250 was nearly flat at 19,804.62 points. Investors are awaiting earnings from big U.S. tech firms as well as U.S. inflation figures this week to gauge the momentum in stock markets.

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