UK Stocks Edge Up Amid Guidance Upgrades and Shell's Record Profit

The FTSE 100 index ticked up by 0.2% to 10,926.42 in early trade on Thursday as Rolls-Royce and BAE Systems upgraded their full-year guidance, and Shell's well-received update lent a hand.

Despite heavy losses on Wall Street after the Federal Reserve kept interest rates unchanged at 3.5% to 3.75%, with three policymakers voting for a 25 basis points hike, UK stocks fared relatively well, thanks in part to guidance upgrades from Rolls-Royce and BAE Systems.

Rolls-Royce lifted its full-year profit guidance following a strong first half, expecting £4.7bn to £4.9bn in underlying operating profits and £3.8bn to £4bn of free cash flow. BAE Systems also upgraded its full-year guidance, expecting sales growth between 8% and 10%, and underlying EBIT up by 10% to 12%.

Shell gushed higher after launching a $3bn share buyback following more than doubling profits in the second quarter due to soaring oil prices and record upstream production in Brazil. The company reported adjusted earnings of $9.84bn for the three months to 30 June, ahead of analyst expectations.