FTSE 100 Ends Higher as Easing Middle East Tensions and Strong UK Data Lift Sentiment
TheFTSE 100finished higher on Friday after encouraging UK economic data combined with reports that fresh peace talks between the US and Iran could be on the horizon, easing concerns that had unsettled markets. . .
TheFTSE 100finished higher on Friday after encouraging UK economic data combined with reports that fresh peace talks between the US and Iran could be on the horizon, easing concerns that had unsettled markets earlier in the week. The blue-chip index climbed 0. 9%, while the FTSE 250 added 0. 7%, with gains accelerating into the closing auction as oil prices retreated sharply following reports of diplomatic progress. Earlier in the session, investors welcomed a series of stronger-than-expected UK economic updates that pointed to improving momentum across the economy. S&P Global’s flash composite purchasing managers’ index rose to 52. 1 in July from 49. 3 in June, comfortably ahead of forecasts and returning to expansion territory. The improvement was driven by both the services and manufacturing sectors, with the services PMI increasing to 51. 8 from 48. 8 to reach its highest level in three months. Separate figures from the Office for National Statistics also surprised to the upside, with retail sales volumes climbing 4. 2% year-on-year in June, accelerating from 3. 5% in May and marking the strongest annual growth since January. Consumer confidence also improved, with GfK’s index rising to minus 17 in July from minus 23 the previous month, beating market expectations. Late in the trading session, Reuters reported that Pakistan is considering facilitating a new round of peace negotiations between the US and Iran following an initiative backed by China. The prospect of renewed diplomacy prompted a sharp decline in oil prices, with Brent crude falling to $95. 49 a barrel after closing above $100 the previous day. Among the leading FTSE 100 performers, Relx rose 4. 8% after receiving supportive analyst comments following its latest trading update. Bank of America raised its price target on the information and analytics group to 3,950p, saying it expects a sustained re-rating as revenue growth accelerates despite wider concerns surrounding artificial intelligence-related businesses. JD Sports Fashion gained 3. 7% after Exane BNP upgraded the retailer to a ‘buy’ rating, while HSBC advanced 1. 7% after agreeing to sell its Singapore life and health insurance business to Allianz for around $2. 1 billion. On the FTSE 250,discoverIE Group climbed 6. 3%after reporting continued strong trading during the opening quarter of its financial year. Organic sales increased 6%, while organic orders surged 31%, with recent acquisitions helping lift total constant currency sales growth to 10%. Engineering technology company Renishaw added 5. 2% after reporting record fourth-quarter revenue of £243 million and saying full-year profit is expected to exceed previous expectations as growth accelerated towards the end of the financial year. Wise fell 4. 9%after revealing that its application for a US national trust bank charter had been rejected by the Office of the Comptroller of the Currency. The licence would have enabled the financial technology company to undertake certain custodial and fiduciary services in the United States. European markets also enjoyed a stronger session, with Paris’ CAC 40 rising 0. 9% and Frankfurt’s DAX 40 gaining 1. 4%. Across the Atlantic, trading was more subdued as investors assessed a fresh round of US tariffs affecting 60 countries, including the UK and the European Union, alongside continued caution surrounding technology shares. The Dow Jones Industrial Average edged higher, while the S&P 500 was little changed and the Nasdaq Composite remained under pressure as investors continued to digest the week’s sell-off in large technology stocks. All three major indexes posted weekly losses, led by a 2% decline for the Nasdaq over the past five days.