In London on Thursday, the FTSE 100 gained 1 percent to 5,270.30 and the FTSE 250 was up 0.3 percent to 5,270.30 on a volume 0f 2.9 billion shares traded.

Engine maker Rolls Royce gained 9.6 percent to 342p on record orders and plans to raise its dividend for the first time since 2001, as well as on a number of upgrades by analysts.

Elsewhere in the aerospace sector, BAE Systems gained 2.2 percent to 308 ¼p, Smiths Group was up 1.1 percent to 957 ½p, and Meggitt advanced by 5.1 percent to 310 ½p.

Royal Dutch Shell missed second quarter expectations despite a profit of over $5 billion. It’s “B” shares were down 1.7 percent to £17.59. Telecommunications group BT lost 2.6 percent to 229p on a mixed second quarter report.

In the pharmaceuticals sector, AstraZeneca, GlaxoSmithKline, and Shire Pharmaceuticals all issued quarterly reports. On the results, AstraZeneca gained 5.6 percent to £24.80 and GlaxoSmithKline was up 0.9 percent to £13.40, but Shire Pharmaceuticals ended even at 655p.

Among mid-cap stocks, CSR gained 14.3 percent to 512p on a better-than-expected earnings guidance and acquisition of the software component of UbiNetics Holdings.

EasyJet lost 3.1 percent to 247p on a downgrade by ABN Amro, which used the threat of terrorism as one reason for the drop in the budget air carrier’s rating.