FTSE 100 treads water as European stocks end month on a high
The UK’s top index moved 6.23 points higher, or 0.08%, to close at 7,608.08.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.European stocks jumped higher on Friday, ending the month in the green after a turbulent week which saw oil prices reach new highs.
London’s FTSE 100 just about kept its head above water as gains for property and utilities stocks were weighed down by losses for energy giants later on in the day.
It moved 6.23 points higher, or 0.08%, to close at 7,608.08.
European stocks had a stronger session, partially recovering losses from earlier in the week. Germany’s Dax jumped 0.41% and France’s Cac 40 climbed 0.26%.
A determination to drive home the message that interest rates will stay higher for longer appears to have finally wobbled investors
Craig Erlam, senior market analyst for OANDA, said: “European stock markets are performing well at the end of the week after spending much of it in the red on the back of fresh interest rate concerns.
“A determination to drive home the message that interest rates will stay higher for longer appears to have finally wobbled investors.”
He added: “The oil price rally has continued this week although there are some signs that it’s starting to run on fumes as we go into the weekend.”
Michael Hewson, chief market analyst for CMC Markets UK, agreed that rising oil prices, following Russia and Saudi Arabia’s decision to reduce supply, has added to investors’ worries over persistent global inflation.
“With 100 US dollar (£81.86) oil now looking inevitable, and interest rates likely to remain higher for longer to combat this inflationary impulse, the pressures on consumer incomes look set to increase further, and that’s before we even consider the impact of another US government shutdown,” he said.
“We are already seeing the consequences of the squeeze on consumer incomes with industrial action by workers keen to try and restore some of the hit to their disposable incomes caused by the rise in prices and rate rises of the last couple of years.”
The price of Brent crude oil retreated from earlier highs on Friday and was down 0.07% to 95.31 US dollars (£78.02) per barrel.
It was a mixed start to trading in the US, with the S&P 500 up 0.15% and Dow Jones down 0.2% by the time European markets closed.
The pound was up by around 0.1% against the US dollar to 1.221, and down by about 0.1% against the euro to 1.154.
In company news, shares in Severn Trent moved higher after the water supplier said it was seeking to raise £1 billion to help support a transformation plan which will create new jobs across the midlands.
The FTSE 100-listed firm stressed that it is “maintaining financial resilience” as it unveiled plans to spend £12.9 billion in improving its network and service over the coming years, including reducing leakage. Its share price closed 4.4% higher.
TGI Fridays owner Hostmore saw its share price surge on Friday after it reported plans to further cut costs across the business and said it was beginning to see inflationary pressures ease.
The group posted a drop in its UK earnings but said it had managed to save more money than previously expected over the first half of the financial year after shutting down or improving loss-making restaurants. Its share price bounced by 14.9%.
The biggest risers on the FTSE 100 were JD Sports, up 6.85p to 149.7p, Severn Trent, up 100p to 2365p, Croda, up 203p to 4915p, United Utilities, up 37.2p to 948.2p, and Ocado, up 19.4p to 600.4p.
The biggest fallers on the FTSE 100 were Hargreaves Lansdown, down 16.2p to 773.2p, Shell, down 54.5p to 2606p, BAE Systems, down 20.7p to 997.8p, BP, down 9.7p to 531.4p, and Flutter Entertainment, down 165p to 13390p.