UK clothing retailer Next once again upgraded annual earnings guidance, with full year profits now expected to hit almost £1bn as recent full price sales “materially exceeded” forecasts.

London stocks were set to gain at the open on Thursday after the US Federal Reserve cut rates by 50 basis points and as investors eyed the latest policy announcement from the Bank of England.

London stocks rallied in early trade on Thursday as investors mulled a bumper rate cut from the US Federal Reserve and eyed the latest policy announcement from the Bank of England.

The group, which is led by chief executive Lord Wolfson, reported a 7.1% jump in underlying pre-tax profits to £452m for the six months to July 27 as total group sales lifted 8%

Capricorn Energy shares jumped on Thursday after the British oil and gas group impressed with its first-half results and reiterated its full-year production guidance.

London stocks were still firmly in the black just after midday on Thursday after the Bank of England left rates unchanged, as widely expected.

London stocks closed higher on Thursday, buoyed by the Bank of England's widely-expected decision to leave interest rates unchanged.