European stocks rose on Friday as new trade talks helped deliver a cheerier sentiment across financial markets.
The UK’s FTSE 100 moved 23.19 points higher, or 0.27%, to close at 8,554.8.
Traders have been digesting developments in global trade this week, with the UK Government unveiling significant new deals, and reports that negotiation meetings were due to take place between the US and China.
On Tuesday, Prime Minister Sir Keir Starmer hailed a “landmark deal” with India, which slashed tariff rates on UK exports in a bid to boost trade between the two countries.
And Thursday saw Sir Keir and President Donald Trump unveil a new UK-US trade agreement in a bid to protect the car and steel industries which were threatened by new tariffs.
The deal has been viewed by many economists as political success, but that will do little to boost the economy, with most UK exports to the US still being subject to a blanket 10% tariff.
Top French and German stocks were also climbing on Friday. The Cac 40 rose 0.64%, and the Dax closed 0.63% higher.
In the US, the S&P 500 was treading water, and more or less flat by the time European markets closed. The Dow Jones had slipped 0.1%.
Axel Rudolph, senior technical analyst at IG, said investors were viewing upcoming talks between the US and China with “cautious optimism”.
He added: “Following the FTSE 100’s longest winning streak and sterling’s climb to a 38-month high against the dollar – signalling a robust return of global capital to UK markets – gains on Friday were mild as scepticism remained about the limited scope of the UK deal and the retention of a 10% tariff on British-made cars.”
The pound was strengthening against the US dollar, rising about 0.5%, at 1.331, and edging up 0.1% against the euro, at 1.181.
The price of Brent crude oil jumped about 1.4% to 63.70 US dollars per barrel.
In company news, British Airways owner IAG said it had bought 32 new Boeing planes from the US, following Thursday evening’s trade agreement.
Chief executive Luis Gallego said the order was a “milestone” for the group and would “strengthen our core markets” over the next decade.
The company also told investors it was seeing “resilient” demand for travel, especially for premium tickets, despite the macroeconomic uncertainty. IAG’s share price rose 2.4%.
Rightmove said it was growing its membership numbers and improving revenue per advertiser in an update to shareholders.
The property listings giant is forecasting revenue growth between 8% and 10% this year compared with the year before.
Chief executive Johan Svanstrom said the business was “comparatively well insulated” from volatility facing other firms in an “uncertain global climate”. Shares in Rightmove closed 2.4% lower.
The biggest risers on the FTSE 100 were BP, up 16.8p to 372.3p, Airtel Africa, up 6.9p to 162.9p, AB Foods, up 84p to 2,112p, Fresnillo, up 31p to 1,061p, and Kingfisher, up 8.4p to 305p.
The biggest fallers on the FTSE 100 were BAE Systems, down 58p to 1,688p, British American Tobacco, down 104p to 3,135p, Rightmove, down 17.8p to 726.2p, Babcock, down 19.5p to 840.5p, and Imperial Brands, down 63p to 3,018p.
