UK Stocks Open Higher on Shell and Rolls-Royce Earnings, Just Group Soars on Takeover Deal.

The FTSE 100 index opened higher on Thursday, boosted by positive earnings from Shell and Rolls-Royce. Just Group surged after agreeing a takeover at a high premium. The Cboe UK 100 was up 0.5% and the CAC 40 in Paris was 0.3% higher. The pound was down at USD1.3261, while the euro stood at USD1.1580. The US Federal Reserve left interest rates unchanged for the fifth meeting in a row. Shell's shares rose 2.4% after it increased its dividend and announced a USD3.5 billion share buyback program.

The FTSE 100 index opened higher on Thursday, boosted by positive earnings from Shell and Rolls-Royce. The FTSE 100 rose 0.5% on Thursday, hovering near record highs above 9,180 [1]. Shares in Rolls-Royce surged over 9% to a new all-time high after the engineering group raised its guidance, with analysts calling the results "very strong," surpassing already high expectations [1]. Shell also gained more than 2% despite a profit decline, as investors focused on its commitment to maintain a $3.5 billion buyback pace, cushioning concerns over weaker trading performance [1].

The index's gains were tempered by losses in mining stocks following a surprise move by President Trump to exempt refined copper from new US tariffs. This unexpected exemption led to a drop in US copper prices, pressuring stocks like Glencore (-2.9%), Anglo American (-1.5%), and Antofagasta (-5.2%), all major copper miners [1]. Meanwhile, packaging firm Mondi fell over 6% after warning of continued tough trading conditions, making it the day’s biggest FTSE 100 laggard [1].

Shell plc (NYSE:SHEL) reported its Q2 2025 results with income attributable to shareholders of $3.6 billion, down 25% from Q1 2025. The company's Adjusted Earnings decreased to $4.3 billion, while cash flow from operating activities increased to $11.9 billion. Shell announced a new $3.5 billion share buyback programme and maintained its quarterly dividend at $0.3580 per share [2]. The company achieved $3.9 billion in pre-tax structural cost reductions since 2022, with $0.8 billion delivered in H1 2025 [2].

Shell's Q2 2025 results show declining performance with lower earnings, reduced margins, and decreased production despite cost-cutting efforts. The company's performance deterioration stems from lower trading and optimization margins and reduced realized prices for liquids and gas, partially offset by higher marketing margins and lower operating expenses. These headwinds have contributed to a 30% year-over-year decline in H1 2025 adjusted earnings to $9.8 billion [2].

Despite challenging market conditions, Shell continues returning capital to shareholders with a quarterly dividend of $0.358 per share and $3.5 billion in completed share buybacks. The company has announced an additional $3.5 billion buyback program expected to complete by Q3 2025 [2].

The Cboe UK 100 was up 0.5% and the CAC 40 in Paris was 0.3% higher. The pound was down at USD1.3261, while the euro stood at USD1.1580. The US Federal Reserve left interest rates unchanged for the fifth meeting in a row [3].

References:
[1] https://www.tradingview.com/news/te_news:474042:0-ftse-100-trades-near-record-levels/
[2] https://www.stocktitan.net/news/SHEL/shell-plc-2nd-quarter-2025-half-year-unaudited-3hzj8s23luwp.html