The blue-chip FTSE 100 index rose 0.45% to 10,656.78 points by 1006 GMT, but was on track for its biggest weekly loss since early July
International News via Reuters:
London’s FTSE 100 inched up on Friday, after five sessions of declines, as oil prices retreated on reports of a push for a Strait of Hormuz deal, while markets awaited crucial U.S. inflation data, due later in the day.
The blue-chip FTSE 100 index rose 0.45% to 10,656.78 points by 1006 GMT, but was on track for its biggest weekly loss since early July. The midcap FTSE 250 gained 0.36% and was poised for its sharpest weekly decline in over four months.
• Oil prices fell more than 2% after Financial Times reported that Gulf foreign ministers could meet their Iranian counterparts to discuss temporary shipping arrangements in the Strait of Hormuz. [O/R]
• Sectors pressured by rising oil prices recovered on Friday while oil majors Shell and BP fell 0.3% and 1%, respectively. However, energy stocks were set to outperform peers for the week.
• Heavyweight banks rose 1.2%, the biggest boosts to the index, with HSBC and Barclays up 1.3% and 1.4%, respectively.
• Aerospace and defence stocks gained 1.2%.
• Meanwhile, data showed Britain’s economy grew at the fastest annual pace in 18 months in July on a possible AI boost, further improving sentiment.
• Investors are sharply focused on U.S. consumer inflation data due later in the day, after a slightly hotter-than-expected producer inflation reading on Thursday pushed up interest rate-hike bets further.
• Traders are now pricing in a 67.5% chance of a U.S. Federal Reserve hike next week, while broadly expecting the Bank of England to hold rates steady, LSEG data showed.
• Inflation worries, alongside ballooning government budget pushed yields on bonds to multi-year highs this week, hammering risk assets.
• Among other stocks, supplement maker Applied Nutrition dropped 1.1% after executives sold 7 million shares, representing 2.8% of issued capital.
• Harbour Energy underperformed by 2.9% after its top shareholder BASF reduced its stake in the oil and gas producer again.
Reporting by Anand Gopal and Purvi Agarwal in Bengaluru; Editing by Diti Pujara
