FTSE 100 Hits Record High as Bank of England Holds Rates

The FTSE 100 index achieved a new intraday record high of 10,979.60 on July 30, 2026. The surge was primarily fueled by strong corporate earnings from the aerospace and defense sectors, as BAE Systems increased its full-year profit guidance following a 9% rise in first-half sales, and Rolls-Royce reported a 46% jump in first-half operating profit, raising its full-year guidance to between £4.7 billion and £4.9 billion.

Simultaneously, the Bank of England maintained interest rates at 3.75% for the fifth consecutive meeting. This decision revealed significant internal division, characterized as a hawkish hold, with policymakers Catherine Mann, Megan Greene, and Huw Pill all voting for a rate increase. Mann specifically advocated for a 25 basis point hike to counteract inflationary shocks stemming from a conflict involving the United States and Iran.

Other corporate activity in the London market included Lloyds Banking Group plc announcing a £1 billion share buyback and a new Accelerate 2030 strategy. In contrast, Rentokil Initial withdrew its 2027 margin target, citing weaker residential demand in North America. While the London market thrived due to its energy and defense weightings, tech-heavy indices in Asia and the U.S. faced volatility, with South Korea's Kospi falling approximately 20% over five sessions.