The FTSE 100 Index Closes 0.20% Higher

The FTSE 100 Index gained 22 points or 0.20 percent on Friday to close at 10815 points. Gains were led by Investec (2.95%), SSE (2.62%) and HSBC Holdings (1.73%). Biggest losers were BAE Systems (-2.92%), Babcock International (-2.36%) and Airtel Africa (-2.12%).

The FTSE 100 rose 0.3% on Friday, joining a broader European rally after Federal Reserve Chair Kevin Warsh struck a cautious tone on inflation at the Jackson Hole symposium. Warsh said recent PCE and CPI readings were encouraging but had not provided enough evidence that underlying inflation was improving decisively, reinforcing expectations that the Fed may need to keep policy restrictive. As a result, market pricing for a September rate hike increased. Financial stocks were among the strongest performers, with HSBC and Standard Chartered both gaining around 1.7%, while Barclays and Lloyds Banking Group also advanced. Utilities also supported the index, led by SSE, which climbed 2.6%, while Severn Trent, Centrica and National Grid posted more modest gains. Shell rose slightly. On the downside, defence stocks BAE Systems and Babcock International declined sharply. Despite Friday’s advance, the FTSE 100 ended August about 0.5% lower, breaking a four-month winning streak.

The FTSE 100 rose around 0.3% on Friday, joining a broader European rally as investors awaited Federal Reserve Chair Kevin Warsh’s closely watched speech at Jackson Hole for clues on the outlook for interest rates and the US economy. Gains across banks, energy companies and miners provided support, although the UK benchmark was slightly behind its European peers. Mining stocks benefited from stronger metals prices, with Endeavour up more than 2%, Fresnillo around 1.7%, and both Antofagasta and Anglo American gaining over 1%. Shell and BP were only modestly higher as Brent crude remained below $90 a barrel. HSBC also added around 1%, while Lloyds’ latest business barometer offered further evidence of resilient corporate sentiment. Despite today’s advance, the FTSE 100 is on course for a monthly decline, ending a four-month winning streak.