LONDON: London’s FTSE 100 dipped from record highs on Friday, but registered weekly and monthly gains as robust earnings buoyed markets through a week of central bank decisions and Middle East hostilities.
The blue-chip FTSE 100 index, which closed down 0.3 percent at 10,868.05 points, marked its biggest monthly jump since February. The midcap FTSE 250 dipped 0.4 percent on the day and notched a third week of gains in a row.
Heavyweight energy stocks added 1.9 percent as Brent crude prices climbed above USD90 a barrel. The sector has gained over 15 percent in July, outperforming its peers, as US-Iran hostilities escalated, threatening fuel supplies.
Meanwhile, British finance minister John Healey said he will hold his first budget on October 28 and pledged to stick to the borrowing rules he inherited from his predecessor Rachel Reeves.
Economists say the government has only a small margin of error for hitting that target and some of Prime Minister Andy Burnham’s policy priorities — such as extra defence spending and better social care — will put more strain on the public finances.
The Bank of England held interest rates on Thursday, but the number of dissenters was three compared with expectations of two, as the impact of the Iran conflict on the economy worried policymakers.
Corporate earnings were in full swing, with investor attention split between reports and macro factors.
NatWest gained 3.2 percent after the lender reported a better-than-expected first-half operating profit before tax of £4.3 billion (USD5.8 billion) and raised its outlook for the year.
British Airways owner IAG dipped 1.5 percent after the company trimmed its 2026 capacity outlook to flat.
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