The UK’s stock market indexes rose on Friday, closing the week with gains, following the US Supreme Court’s decision to nullify President Donald Trump’s tariffs, as well as hopes of a rate cut by the Bank of England in March and reduced worries about the impact of AI.
The FTSE 100 blue-chip index closed 0.5% higher after reaching a record high in intraday trading at 10,745.76 points. This also represented the biggest weekly advance since mid-December.
The FTSE 250, which focuses on domestic shares, gained 0.7% and closed the week higher.
The US Supreme Court on Friday invalidated Trump’s broad tariffs, but the UK government stated that it still looks forward to its special trading relationship with the US being maintained.
Meanwhile, the rising tensions in the oil-rich Middle East and the increased chances of defence partnerships in Europe contributed to a 6.7% increase in UK defence shares this week.
In terms of earnings, Aston Martin shares declined 1.4% after the luxury car manufacturer forecast a larger annual loss and announced that it intends to sell the right to use its name on the Aston Martin F1 Team to improve its finances after a tough year.
The overall market declined 1.4% and was one of the few sectors that closed in the red.
Anglo American reported a $3.7 billion loss due to another write-down in its diamond division. However, shares rose 1% in line with rising base metal and precious metal prices.
estors were relieved by data earlier this week that showed inflation was steadily nearing the central bank’s 2% target. Strong manufacturing activity data and retail sales numbers on Friday, however, pointed to the risk of price pressures flaring up.
Market Optimism Builds on Rate Cut Expectations and Safe-Haven Appeal
However, traders believe there is a 78% probability that the central bank will reduce interest rates by 25 basis points when it meets next month to boost the labor market.
Chris Beauchamp, chief market analyst at IG Group, said that the FTSE has become a “safe haven” this year, as undervalued stocks and consistent momentum attract investors away from “overhyped” U.S. tech stocks, while maintaining a risk-on environment.
Concerns about AI disruption, which had shaken markets earlier in the month, seemed to take a backseat.
However, tensions between Iran and the U.S. were in focus after Trump warned Iran on Thursday that it must come to a deal over its nuclear program or “really bad things” will occur.
Other stocks that moved include Diageo, which rose 3.9% after a report that new CEO Dave Lewis is planning a big overhaul of his executive team.
Chris Beauchamp, chief market analyst at IG Group, said that the FTSE has become a “safe haven” this year, with low valuations and “steady momentum” encouraging investors to leave “overheated” U.S. tech stocks, although the overall risk-on environment is still in place.
Concerns over AI disruption, which had unsettled markets earlier in the week, seemed to take a back seat.
However, tensions between Iran and the U.S. were in the news after Trump warned Iran on Thursday that it must make a deal over its nuclear program or “really bad things” will happen.
Other stocks that moved included Diageo, which rose 3.9% after a report that new CEO Dave Lewis is planning a “shake-up” of his executive team.
For more information, please visit the link below.