Top 5 FTSE 100 shares to watch in July: IAG, Lloyds, Rolls-Royce, Sage, NatWest

The FTSE 100 Index remained in a tight range in June as investors focused on the UK’s political situation, Bank of England (BoE) action, and the US and Iran situation. It rose to 10,500 points, up by 3.70% from its lowest level in June. This article explores the top Footsie shares to watch in July.

IAG shares in focus ahead of earnings

International Consolidated Airlines Group (IAG) stock price has soared in the past few months, moving from the year-to-date low of 333p in April to a record high of 492p. This rally happened as air travel recovered following the end of the US and Iran war, which pushed crude oil prices lower. 

IATA data shows that jet fuel prices have slumped sharply in the past few weeks, a trend that may continue in the coming weeks. Falling jet fuel prices, together with the travel rebound, will benefit IAG, which runs some of the top airlines in the industry like British Airways, Aer Lingus, and LEVEL.

IAG shares will be in the spotlight as investors watch the new developments in the US-Iran war. Signs of escalation will drag the stock as jet fuel prices continue rising. 

Most importantly, the company will publish its financial results later this month. These numbers will provide more color on its business and its profitability. 

Sage Group’s earnings to provide details on SaaSPocalypse

Sage Group is a top company that offers accounting software popular with small businesses globally. It competes with Intuit, which has become the worst-performing company in the S&P 500 Index this year. 

Sage Group’s stock has also plunged in the past few months, moving from last year’s high of 1,350p in February last year to 822p today. This retreat has intensified amid the ongoing fear that its business will be disrupted by AI tools. 

Therefore, the upcoming Sage Group’s earnings on July 19 will provide more color on its business. The most recent numbers showed that its revenue rose by 11% in the first half of the year, while its operating margin rose gradually to 23.9%. 

Lloyds Bank and NatWest to publish their earnings

Top UK banks will be in the spotlight in the final week of the month as they publish their financial results. These numbers come as their shares are doing well. Lloyds Bank jumped to 111.55p, its highest point since February this year, while NatWest soared to 670p, its highest level since January.

These numbers come as analysts are watching the next action by the Bank of England (BoE). Expectations are that the bank will leave rates unchanged at 3.75% this year, which will help these companies improve their margins.

These banks will also react to the new political developments in the UK. For one, Andy Burnham may become the next Prime Minister as soon as this month. 

Rolls-Royce Holdings in focus amid narrow body engine return

Rolls-Royce stock has done well and is hovering near its all-time high. The stock will be in focus as the management publishes its earnings on July 31st. These results will provide more information on the state of the business during the war. 

Also, the company will provide more information on the potential launch of a narrow-body engine. This engine is expected to move into service by 2030. For now, however, the company is looking for source of funds, including from the British government. Also, it is looking for manufacturing partners. The company will also provide hints about its data center and SMR businesses. 

There will be other key FTSE 100 companies to watch this month, including BAE Systems, London Stock Exchange, Rentokil, Standard Chartered, Rightmove, and Taylor Wimpey.