The FTSE 100 closed higher on Friday, recovering from Thursday’s decline as investors digested corporate updates, improving UK business confidence and comments from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium.
London’s blue-chip index gained 0.3% to 10,824.26, leaving it broadly unchanged over the week. The FTSE 250 rose 0.2% to 24,938.79, taking its weekly advance to almost 1%.
Warsh said the Federal Reserve would “have work to do” if policymakers failed to gain confidence that inflation was returning towards the central bank’s 2% target. Markets interpreted the remarks as leaving the door open to another US interest-rate increase.
Traders subsequently priced in an almost 60% probability of a September Federal Reserve rate rise, up from around 35% a day earlier, according to CME FedWatch. The dollar strengthened while US equities delivered a mixed performance.
In the UK, investors continued to scale back expectations for another Bank of England rate increase during 2026, providing some support to rate-sensitive areas of the market.
Domestic sentiment was also helped by the latest Lloyds Business Barometer, which showed UK business confidence reaching its highest level since March, supported by a more optimistic assessment of the wider economy.
Oil prices edged lower, with Brent crude trading around US$89 a barrel, as markets continued to monitor the diplomatic deadlock between the US and Iran.
Among individual stocks, Goodwin gained 1.4% after reporting full-year trading profit of £77.5 million, more than double the previous year’s level.
Recruitment group Hays rose around 5.1% after Panmure Liberum upgraded the shares to ‘buy’ from ‘hold’.
