The FTSE 100 climbed on Friday, rising for a second consecutive session amid calmer global market conditions following a week marked by investor nerves over US trade policy and economic uncertainty.
London’s premier index finished the day up 0.64%, or 50.93 points, at 7,964.18. The move helped to steady the market after a shaky start to the week triggered by fears surrounding President Biden’s proposed tariff plans. Despite the rebound, the index remained around 1% down over the course of the week.
Friday’s uptick was driven by a more stable trading environment, although concerns remained about the broader economic outlook. Travel and leisure stocks lagged, with British Airways owner International Consolidated Airlines Group (IAG) among the worst performers on the FTSE 100. Investors remained wary of the impact a potential global recession could have on consumer spending, particularly discretionary expenses like holidays and travel.
Meanwhile, across the Channel, European markets failed to hold onto recent gains. The Cac 40 in Paris dipped 0.3%, while Frankfurt’s Dax slid by 0.94%. This followed a record-setting Thursday session, with many traders opting to lock in profits after the biggest daily gains in three years.
In the US, Wall Street opened on a cautious note. The Dow Jones and S&P 500 began the session in positive territory but experienced choppy early trading as investor sentiment remained fragile.
Axel Rudolph, senior technical analyst at IG, commented: “Stock indices suffered from investor fatigue and saw their lowest volatility day of the week. After a turbulent few days, the oil price also stabilised and remained broadly unchanged. Bar gold, investors aren’t flocking to traditional safe haven assets such as the US dollar or Treasuries as they no longer trust the US government.”
Currency markets reflected mixed sentiment, with sterling rising 0.6% to 1.304 US dollars but slipping 0.3% to 1.154 euros by the close of London trading.
In corporate news, BP was among the top fallers on the index. The oil and gas giant saw its shares slide by 2.9% to 331.7p, their lowest level since 2022. The drop followed news that the company expects lower gas production and increased debt levels in the first quarter of 2025, raising investor concerns about future profitability.
Toy maker Character Group also faced a tough session, finishing the day down 6.2% at 242p. The firm, which manufactures Peppa Pig toys under licence, withdrew its financial guidance amid the uncertainty caused by the proposed US tariffs. With roughly 20% of its sales coming from the American market, Character Group said forecasting had become “considerably obscured”.
On a brighter note, property developer Helical enjoyed a strong session, with shares jumping 6.9% to 186p. The company announced a £333 million forward sale of its flagship office development at 100 New Bridge Street in London’s financial district to an undisclosed S&P 500-listed firm. Investors welcomed the move as a vote of confidence in the capital’s commercial real estate market.
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Oil prices remained steady, buoyed by cautious optimism in the energy sector. Brent crude rose 0.44% to 63.61 US dollars (£48.72) a barrel as trading drew to a close in London.
Among the FTSE 100’s top performers were Fresnillo, up 68p to 991p, Endeavour Mining, up 121p to 2,004p, Tesco, rising 13.1p to 327.7p, ConvaTec, up 9.4p to 247.6p, and Glencore, which gained 8.65p to close at 253.65p.
The day’s biggest fallers included St James’s Place, which dropped 37p to 823.4p, BP down 9.9p to 331.7p, Pershing Square down 70p to 3,332p, IAG slipping 4.9p to 240.8p, and Experian, which fell 64p to 3,354p.
As markets head into the weekend, investors will be watching closely for any developments on global trade and inflation data that could set the tone for the next week’s trading sessions.
