LONDON: UK’s main stock indexes posted weekly gains on Friday, as equities rallied after Iran’s foreign minister announced that the Strait of Hormuz is open for the remaining period of ceasefire.
US President Donald Trump said he believed a deal to end the Iran war would come “soon”. Oil prices plunged below USD90 a barrel following the announcement, lifting stocks and government bonds higher.
The blue-chip FTSE 100 index closed 0.7 percent higher at 10,667.63 points, clocking gains for a fourth straight week.
The midcap FTSE 250 climbed 1.9 percent, extending its winning run for three weeks.
Travel & leisure stocks advanced as crude prices dropped; Wizz Air, Carnival gained above 7 percent and easyJet rose 6 percent.
Top gainers: Fresnillo climbed 6.4 percent, while British Airways owner IAG added 6.2 percent.
Oil giant BP fell 7.4 percent and Shell dropped 5.6 percent, among top losers.
Precious metal miners rose 5 percent tracking bullion prices.
Bank of England Chief Economist Huw Pill said on Friday that the central bank’s main focus should be getting inflation to its 2 percent target.
Heavyweight banks advanced 2.3 percent; Barclays climbed 3.5 percent, Standard Chartered rose 2.9 percent and HSBC added 2 percent.
The Financial Times reported on Thursday that Finance Minister Rachel Reeves vowed to cut the link between gas and electricity prices, sending the utilities sector down.
National Grid dropped 1 percent, Severn Trent fell marginally by 0.6 percent; SSE and Centrica dipped 6.6 percent and 5 percent, respectively.
Defence stocks: BAE Systems rose 1.8 percent and Rolls-Royce gained 4.8 percent.
Workspace Group fell 6.2 percent as the office-space provider said it expects a substantial step down in annual profit.
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