FTSE 100 Closes up 0.4% as Banks Lead Weekly Recovery
London’s blue-chip index gained 0.4% on Friday, capping a week of losses driven by geopolitical tensions and oil price volatility.
The FTSE 100 index closed the trading session higher by 0.4 percent. This gain marked the end of a five-day losing streak for the benchmark gauge. The mid-cap FTSE 250 also rose by 0.4 percent in the final hours of trade. Both indices recorded their sharpest weekly declines in recent months. The rebound was driven primarily by strength in the financial sector. Bank shares reversed a three-day slump to lead the broader market higher.
HSBC shares increased by 1.5 percent during the session. Barclays stock climbed by 1.9 percent, outperforming the wider index. These moves followed a period of sustained selling pressure on the banking group. Investors rotated into financials as interest rate expectations remained elevated. Construction and materials stocks posted the largest percentage gain among sectors. This group rose by 1.8 percent, signaling broad-based buying activity.
Geopolitical Risks Ease Slightly
Oil prices fell by 2 percent on Friday. This drop followed reports that Gulf foreign ministers may meet Iranian officials. The potential discussion covers temporary shipping arrangements in the Strait of Hormuz. The energy sector had been the top performer earlier in the week. This was due to crude oil climbing above the 100 dollar mark. The recent decline in oil prices reduced inflationary pressures on the market.
Macro Data Influences Rate Outlook
UK economic data showed growth at the fastest annual pace in 18 months. This performance was attributed partly to a boost from artificial intelligence. Traders now price in 44 basis points of rate hikes by the Bank of England. This expectation is up from 25 basis points two weeks ago. US data indicated that consumer inflation rose the most in four months. This reinforces the view that the Federal Reserve may raise rates next week.
Individual Stock Performance Details
Gamma Communications shares fell by 2.9 percent. The decline followed the withdrawal of a takeover bid by a Dutch private equity firm. Harbour Energy underperformed the market by 1.9 percent. Its largest shareholder, BASF, reduced its stake in the company. Global bond markets also paused their recent sell-off. The FTSE 100 remains sensitive to external shocks and interest rate trajectories. Source: GN auto markets/indices: stock index.
