The FTSE 100 rose 0.83% to 10,528.57 by midday on Friday, while the FTSE 250 climbed 0.92% to 24,165.30.
Sentiment improved as oil prices retreated after US President Donald Trump said Washington would not attack Iran before next month’s midterm elections, citing what he described as productive talks with Tehran.
The pullback eased some of the inflation concerns triggered by Brent’s surge above $105 on Thursday.
UK government borrowing costs also declined, with 10-year and 30-year gilt yields retreating from multi-decade highs reached earlier this week.
Both major London indices were on course to finish a volatile week with modest gains despite sharp swings driven by oil, inflation expectations and global bond markets.
One of Friday’s major corporate events was the London debut of Airtel Money, whose shares opened at their £1.96 IPO price following a heavily oversubscribed offering.
The flotation raised around $703 million and valued the African fintech business at approximately $7 billion, making it one of London’s largest IPOs in recent years.
Telecommunications stocks moved sharply in the opposite direction.
Vodafone, Airtel Africa and BT Group fell between approximately 2.5% and 5.4%, as investors reacted to SpaceX’s agreement to acquire a nationwide portfolio of US low-band spectrum licences.
The deal strengthens Starlink Mobile’s potential to compete more directly with conventional telecom operators, although regulatory approval is still required and building a full mobile service will take time.
On the FTSE 250, SSP Group fell around 4% after the Upper Crust owner’s latest outlook pointed to annual operating profit slightly below previous expectations.
Morgan Advanced Materials jumped 8.7% after RBC Capital Markets upgraded the shares and raised its price target, highlighting the disposal of its Thermal Products business and increased exposure to higher-margin aerospace and defence markets.
For investors, Friday’s rebound reflects a notable easing in the week’s two biggest macro risks: energy prices have fallen and bond yields have moved lower.
However, Brent remains above $100 and borrowing costs remain historically high, meaning the market remains vulnerable to any renewed escalation in the Middle East or another rise in inflation expectations.
