LONDON: The main UK stock indexes climbed on Friday, with midcaps closing at an over three-year high, driven by global optimism over earnings, trade policies and easy monetary policy.
The internationally focussed FTSE 100 rose 0.7%, while the domestically oriented FTSE 250 jumped 1.1% to close at its highest level since February 2022.
Markets have rebounded in recent weeks due to easing concerns over the Middle East conflict, signs of US-China trade negotiations and potential for US interest rate cuts. The main Wall Street indexes - the S&P 500 and the Nasdaq - touched intraday record highs on Friday, with technology stocks in the lead as soft economic data supported more rate cuts from the Federal Reserve.
Also aiding sentiment, the US and China have resolved issues surrounding shipments of rare earth minerals and magnets to the US, Treasury Secretary Scott Bessent
said, ironing out a dispute that stalled a deal reached in May.
Meanwhile, British Prime Minister Keir Starmer sharply scaled back
planned welfare cuts to quell a damaging rebellion by lawmakers in his governing Labour Party. Starmer’s reforms had sought to shave 5 billion pounds ($6.9 billion) per year off a rapidly rising welfare bill.
The reforms are set to be put to a vote in parliament on July 1.
JD Sports was among the top gainers on the blue-chip FTSE 100, advancing 7.6% after US peer Nike’s upbeat earnings bolstered sportswear brands.
Unilever shares rose 1% after the Financial Times reported it was buying men’s personal care brand Dr Squatch from private equity firm Summit Partners for $1.5 billion (1.09 billion pounds).
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