The UK's FTSE 100 is down 0.3% with stocks in mixed performance as investors react to earnings announcements and await the Federal Reserve's monetary policy announcement. GSK is rising 1.3% on strong earnings, while HSBC Holdings is down 2.5% after reporting a 29% drop in second-quarter earnings. BAE Systems is down 3% despite raising its sales and earnings guidance.
The FTSE 100 closed 0.3% lower on Wednesday, July 2, 2025, as investors reacted to a series of earnings announcements and awaited the Federal Reserve's monetary policy announcement. The benchmark index, which had climbed to 9,169.01 earlier in the session, ended the day at 9,108.10.
Key Earnings Highlights:
- GSK Plc (LON:GSK) reported a strong second quarter, with sales up 1% at £8.0 billion and core operating profit increasing by 33%. Specialty Medicines, the company's largest business, saw double-digit sales growth in Respiratory, Immunology & Inflammation, Oncology, and HIV. The company expects core earnings per share (EPS) to increase towards the top end of its range of 6% to 8% for 2025. GSK's Chief Executive Officer, Emma Walmsley, commented on the company's strong momentum and progress in R&D [2].
- HSBC Holdings (LON:HSBA) reported a 29% year-over-year drop in second-quarter earnings before tax to $6.3 billion, primarily due to the recognition of dilution and impairment losses of $2.1 billion in BoCom. The company's shares fell by 2.5% [1].
- BAE Systems (LON:BAE) raised its sales and earnings guidance but saw its shares fall by 3%. The company's guidance was not enough to offset concerns over its recent earnings performance [1].
Market Sentiment:
Investors are closely watching the Federal Reserve's monetary policy announcement, which is expected to provide insights into future interest rate changes. The mixed earnings reports have added to the uncertainty in the market, with some companies reporting strong results while others faced significant earnings declines.
References:
[1] https://www.nasdaq.com/articles/ftse-100-down-03-hsbc-holdings-slips-lower-earnings
[2] https://www.directorstalkinterviews.com/gsk-raises-2025-guidance-after-strong-q2-performance/4121209936
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