Britain’s FTSE 100 rose more than 0.9% on Friday as oil prices fell back below US$100 a barrel. The index was supported by a sharp reversal in Brent crude, which dropped more than 5% during the session to around US$96 a barrel.
The fall in oil prices helped ease inflation concerns and improved market sentiment after a volatile week driven by Middle East tensions.
The FTSE 100 closed up 97.06 points, or 0.9%, at 10,736.23. The FTSE 250 rose 174.16 points, or 0.7%, to 23,801.49, while the AIM All-Share gained 0.6% to 772.98. For the week, the FTSE 100 rose 1.3%, the FTSE 250 gained 0.8%, and the AIM All-Share advanced 1.6%.
London’s blue-chip index was also lifted by a rebound in software stocks. Relx and Sage Group both rose sharply, as investor confidence returned to parts of the sector following strong results from Relx. Software shares have come under pressure in recent months amid concerns over the potential impact of artificial intelligence on growth and margins.
UK economic data helped underpin sentiment. The S&P Global flash composite PMI rose to 52.1 in July from 49.3 in June, marking a three-month high and beating forecasts for 49.7. The services PMI also returned to growth, rising to 51.8 from 48.8.
In New York, stocks were higher, with the Dow Jones up 0.7%, the S&P 500 rising 0.6% and the Nasdaq Composite edging 0.1% higher. US tariffs remained in focus after Washington announced new levies of between 10% and 12.5% on 60 countries, with the UK and EU both subject to a 10% tariff.
On the FTSE 100, Relx led the risers, up 4.8%, after positive broker comments following its trading update. Bank of America raised its price target to 3,950p and said the shares were positioned for a “significant and sustained re-rating”.
JD Sports rose 3.7% after Exane BNP upgraded the stock to buy. HSBC gained 1.7% after selling its Singapore life and health insurance business to Allianz for around US$2.1 billion.
On the FTSE 250, discoverIE jumped 6.3% after saying strong momentum from the prior financial year had continued into the first quarter.
Renishaw rose 5.2% after reporting record fourth-quarter revenue and saying it expects annual profit to be ahead of expectations. Wise fell 4.9% after its US national trust bank charter application was rejected by the Office of the Comptroller of the Currency.
Gold rose to US$4,078.09 an ounce from US$4,047.56.
On Monday’s UK corporate calendar, AstraZeneca reports half-year results, while Vodafone issues a trading update.
