Gains for banking stocks help FTSE climb higher
The FTSE 100 moved 0.36%, or 28.53 points, higher to finish at 7,871.91.
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Your support makes all the difference.Strong sessions for banks helped the FTSE 100 climb to another month high as it struck its fourth consecutive week of gains.
London’s top index benefited from weakness in the pound as multinationals saw another strong session.
The FTSE 100 moved 0.36%, or 28.53 points, higher to finish at 7,871.91.
Across Europe, the banking sector also helped to drive gains as sentiment was lifted by positive results in the US, with both JP Morgan Chase and Wells Fargo delivering updates which calmed previous concerns over turmoil in the sector.
The Dax rose by 0.5% and the Cac 40 increased by 0.52% at the close
Michael Hewson, chief market analyst at CMC Markets UK, said: “Markets in Europe have continued to build on their gains of the week, with today’s US banking numbers giving a lift to European financials with Commerzbank, Deutsche Bank, HSBC, Barclays, and Standard Chartered enjoying a lift.
“The DAX has once again posted a new 11-month high, the CAC 40 another new record high, while the FTSE 100 briefly popped its head above the 7,900 level for the first time since the March 9, when the SVB crisis first broke.”
However, stateside the banking updates did not stop the Dow Jones and S&P moving lower on the opening bell after weaker-than-expected retail data.
Meanwhile, sterling recoiled after hitting a 10-month high against the dollar on Thursday.
The pound was down 0.79% to 1.242 US dollars and fell by 0.22% to 1.131 euros at market close in London.
In company news, HSBC shares performed strongly, boosted by updates from US rivals while it also said the sale of its French retail business is on the verge of collapse.
In 2021, HSBC agreed a deal to sell the arm to My Money Group but the deal is in jeopardy as the buyer has struggled to raise additional capital following interest rate hikes.
Shares were up 17p to 584.3p at the close of play.
Fashion brand Superdry lost share value as it warned over its profits and revealed plans to cut costs by more than £35 million after struggling against dampened consumer spending.
The retailer said it was considering a fundraise in a bid to shore up cash to help it “emerge from the current turbulence”.
As a result, shares moved 17.8p lower to 89p.
Dechra Pharmaceuticals surged by almost a third after the veterinary pharma firm said it was in takeover talks with Swedish buyout firm EQT.
Shares moved 918p higher to 3,694p, making it the FTSE 250’s top performer on Friday.
AO World climbed by 8p to 75.65p after the online white goods retailer lifted its profit outlook for the fourth time since last summer after successful cost-cutting.
The price of oil edged higher as optimism around the banking sector help ease any fears over energy demand.
Brent crude oil increased by 0.45% to 86.48 US dollars per barrel when the London markets closed.
The biggest risers in the FTSE 100 were Standard Chartered, up 27.4p at 646p, Persimmon, up 41.5p at 1,274p, Barclays, up 4.94p at 157.88p, HSBC, up 17p to 584.3p, and Kingfisher, up 6.7p at 260.9p.
The biggest fallers of the session were Hiscox, down 34p at 1,118p, Admiral, down 60p at 2,222p, Beazley, down 13.5p at 583p, National Grid, down 25.5p at 1,118.5p, and Melrose Industries, down 3.3p at 166.85p.