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 U.S.-China trade negotiations and potential for U.S. 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 U.S. and China have resolved issues surrounding shipments of rare earth minerals and magnets to the U.S., 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 U.S. 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).
On the flip side, the FTSE 350 precious metals and mining index dropped 4.4% as gold prices declined following a ceasefire between Iran and Israel.
Fresnillo and Endeavour Mining fell more than 4%, while Hochschild Mining lost 2.6%.
(Reporting by Twesha Dikshit, Sruthi Shankar and Ankita Yadav）
