UK supermarket chain Sainsbury's reported increasing momentum in its second quarter as it reiterated guidance for strong underlying profit growth this financial year, helped by improving grocery volumes and a stronger performance from Argos in the second half.

Taylor Wimpey backed its full-year outlook on Thursday as it said it saw steady signs of improvement in customer demand in the second half to date, as mortgage rates reduced and affordability improved.

Group interim chief executive John Journee says trading conditions remain challenging.