London midday: FTSE ticks higher, bond markets calmer
By Michele Maatouk
Date: Thursday 14 May 2026
(Sharecast News) - London stocks had risen by midday on Thursday, while bond markets regained some poise as investors weighed up solid GDP figures against an expected leadership challenge for Prime Minister Keir Starmer.
The FTSE 100 was up 0.3% at 10,355.63, while sterling was down 0.1% against the dollar at 1.3513. At the same time, Brent crude was 0.2% lower at $105.39 a barrel.
Health secretary Wes Streeting was reportedly set to resign on Thursday and launch a leadership challenge against Keir Starmer. Energy secretary Ed Miliband and Angela Rayner could also join the fight to become prime minister.
On the macro front, figures from the Office for National Statistics showed the economy grew in the first quarter, in line with expectations. GDP increased by 0.6% in January to March, following a revised 0.2% uplift in the fourth quarter.
While all sectors contributed to the uplift, the main driver was services, which grew by 0.8%.
Liz McKeown, director of economic statistics at the ONS, said: "Growth picked up in the first quarter of the year, led by broad-based increases across the services sector.
"Within that wholesale, computer programming, and advertising performed particularly well.
"Production also grew slightly, while construction returned to growth, though only partly reversing weakness at the end of last year."
Kathleen Brooks, research director at XTB, said: "The UK bond market is remarkably stable considering the Prime Minister is expected to face a leadership challenge from both the right and the left of the Labour party in the coming hours.
"Bond yields are backing away from their highs, as UK GDP drives sentiment towards UK debt. The UK's 10-year yield remains above 5%, but it is lower by 6bps compared to Tuesday's high.
"The GDP report has eased some fears about the strength of the UK economy and its resilience in the face of an energy price spike."
In equity markets, Legal & General jumped to the top of the FTSE 100 after a Financial Times report suggesting that potential bidders, including insurers and alternative asset managers, had been running the rule over the business.
Spire Healthcare rocketed after the private hospital group said it had received a 250p-per-share takeover proposal from Toscafund Asset management - its second-largest shareholder - that it would be minded to recommend.
Watches of Switzerland was also a high riser as it said full-year adjusted EBIT was set to be ahead of previous guidance, at between £152m and £155m.
ITV advanced after the broadcaster said it remains in active discussions with Sky about a possible sale of the Media & Entertainment business.
On the downside, 3i Group tanked as the private equity and infrastructure investment firm pointed to slowing sales at its biggest holding, Dutch discount retailer Action.
Burberry slumped as it hailed a "meaningful inflection point" and swung to a full-year profit, underpinned by growth in the Americas and China, as investors reacted to a weaker performance in the Middle East and a cautious outlook.
Dan Coatsworth, head of markets at AJ Bell, said: "Chief executive Joshua Schulman didn't try and dress up the macroeconomic situation, as the Iran war hits tourism and puts spending on discretionary items under pressure. Management's decision to continue the freeze on dividend payments is another indication of their caution about the immediate prospects for the business.
"This conservatism, while poorly received today, may help in the longer term if it keeps expectations in check. However, given the miserable experience Burberry shareholders have endured in recent years it seems they were looking for a bit more sunshine alongside the rain."
Coca-Cola HBC, BP and Pagegroup all fell as they traded without entitlement to the dividend.
Market Movers
FTSE 100 (UKX) 10,355.63 0.29%
FTSE 250 (MCX) 22,658.35 0.58%
techMARK (TASX) 5,900.95 0.17%
FTSE 100 - Risers
Legal & General Group (LGEN) 263.50p 6.12%
British American Tobacco (BATS) 4,908.00p 3.36%
Airtel Africa (AAF) 371.00p 3.23%
Relx plc (REL) 2,394.00p 2.66%
Imperial Brands (IMB) 2,824.00p 2.58%
Admiral Group (ADM) 3,248.00p 2.40%
Whitbread (WTB) 2,318.00p 1.98%
Barclays (BARC) 430.70p 1.97%
Standard Life (SDLF) 761.50p 1.87%
Compass Group 11 (CPG) 32.96p 1.79%
FTSE 100 - Fallers
3i Group (III) 2,117.00p -12.27%
Burberry Group (BRBY) 1,078.50p -7.78%
Babcock International Group (BAB) 989.20p -2.52%
Coca-Cola HBC AG (CDI) (CCH) 4,200.00p -1.55%
Tesco (TSCO) 456.30p -1.34%
Metlen Energy & Metals (MTLN) 39.68p -1.24%
International Consolidated Airlines Group SA (CDI) (IAG) 387.50p -0.97%
BP (BP.) 539.30p -0.86%
ICG (ICG) 1,832.00p -0.70%
Antofagasta (ANTO) 4,271.00p -0.63%
FTSE 250 - Risers
Spire Healthcare Group (SPI) 218.00p 44.95%
Watches of Switzerland Group (WOSG) 606.50p 14.31%
Tate & Lyle (TATE) 394.60p 5.39%
Dr. Martens (DOCS) 62.80p 3.79%
ITV (ITV) 80.65p 3.67%
Aston Martin Lagonda Global Holdings (AML) 48.44p 2.89%
Premier Foods (PFD) 202.40p 2.79%
Trainline (TRN) 210.60p 2.63%
Pan African Resources (PAF) 152.70p 2.14%
Hikma Pharmaceuticals (HIK) 1,453.00p 2.11%
FTSE 250 - Fallers
Pagegroup (PAGE) 117.60p -5.69%
Partners Group Private Equity Limited. (EUR) (PEY) 8.04p -3.83%
HGCapital Trust (HGT) 343.50p -3.13%
Oxford Biomedica (OXB) 616.00p -2.22%
Greencoat UK Wind (UKW) 99.60p -1.97%
Fidelity China Special Situations (FCSS) 299.50p -1.96%
Hays (HAS) 30.30p -1.94%
B&M European Value Retail (BME) 160.50p -1.90%
JPMorgan Japanese Inv Trust (JFJ) 780.00p -1.89%
Ceres Power Holdings (CWR) 730.50p -1.88%
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