US Stocks Recover as UK Defence Sector Boosts FTSE 100
US stock markets rebound following a challenging week, while UK defence stocks rise amid ongoing geopolitical concerns.
Global stock markets showed signs of recovery on Friday, with US stocks rebounding from a steep decline earlier in the week.
The S&P 500 index in New York advanced significantly after markets opened, reversing some of the recent losses that investors have faced, primarily due to new tariffs announced by government officials.
By the time the European markets closed, the S&P 500 had climbed approximately 1.8%, and the Dow Jones experienced a rise of 1.4%.
In London, the FTSE 100 index gained 89.77 points, or 1.055%, to finish at 8,632.33. The uplift was propelled by significant contributions from major aerospace and defence companies, including Melrose Industries, BAE Systems, and Rolls-Royce, each witnessing share price increases exceeding 3%.
Simultaneously, discussions among global leaders regarding the ongoing conflict in Ukraine continued, with G7 allies advocating for a ceasefire without preconditions.
UK Prime Minister Sir Keir Starmer is set to hold a summit with leaders from European and Commonwealth nations this Saturday to explore potential support options, including the possibility of deploying British peacekeeping troops to Ukraine.
Despite the positive market performance, economic data indicated a contraction in the UK economy.
Official figures revealed that the country's gross domestic product (GDP) decreased by 0.1% in January, largely attributed to a downturn in the manufacturing sector, which surprised economists who had anticipated a slight increase.
While the FTSE 100 experienced gains, the UK currency showed signs of weakness, with the pound sterling falling around 0.2% against the US dollar, settling at 1.292, and down 0.5% against the euro at 1.187.
In corporate news, the Berkeley Group, a prominent house builder, reported an improvement in home sales and projected a minimum of £957 million in pre-tax profits over the next two financial years.
The company expressed optimism regarding government planning reforms and housing targets, although it noted that regulatory changes, including a new building safety levy, were placing pressure on the completion of new housing projects.
Consequently, shares in Berkeley rose by 1.4%.
Conversely, shares of Vanquis Banking Group declined after the lender announced an adjusted pre-tax loss of £35 million for the past year, a stark contrast from the previous year's profit.
Vanquis described the past year as pivotal, highlighting numerous challenges while also noting progress in cost-saving initiatives and addressing structural issues.
Shares in Vanquis dropped 5.3% upon closure.
Among the biggest risers on the FTSE 100 were Melrose Industries, which increased by 31.8p to reach 528p, BAE Systems, up 66.5p to 1,657p, Games Workshop, which rose by 500p to 14,900p, Rolls-Royce, which climbed 25p to 796.4p, and Scottish Mortgage Investment Trust, which increased by 27.8p to 967.6p.
In contrast, the market saw notable declines from Tesco, which fell 32.3p to 339.2p, Sainsbury’s, down 19.8p to 235p, Marks & Spencer, which decreased by 18.4p to 334.4p, WPP, down 15.8p to 616.2p, and Spirax, which dropped 145p to 6,965p.
The S&P 500 index in New York advanced significantly after markets opened, reversing some of the recent losses that investors have faced, primarily due to new tariffs announced by government officials.
By the time the European markets closed, the S&P 500 had climbed approximately 1.8%, and the Dow Jones experienced a rise of 1.4%.
In London, the FTSE 100 index gained 89.77 points, or 1.055%, to finish at 8,632.33. The uplift was propelled by significant contributions from major aerospace and defence companies, including Melrose Industries, BAE Systems, and Rolls-Royce, each witnessing share price increases exceeding 3%.
Simultaneously, discussions among global leaders regarding the ongoing conflict in Ukraine continued, with G7 allies advocating for a ceasefire without preconditions.
UK Prime Minister Sir Keir Starmer is set to hold a summit with leaders from European and Commonwealth nations this Saturday to explore potential support options, including the possibility of deploying British peacekeeping troops to Ukraine.
Despite the positive market performance, economic data indicated a contraction in the UK economy.
Official figures revealed that the country's gross domestic product (GDP) decreased by 0.1% in January, largely attributed to a downturn in the manufacturing sector, which surprised economists who had anticipated a slight increase.
While the FTSE 100 experienced gains, the UK currency showed signs of weakness, with the pound sterling falling around 0.2% against the US dollar, settling at 1.292, and down 0.5% against the euro at 1.187.
In corporate news, the Berkeley Group, a prominent house builder, reported an improvement in home sales and projected a minimum of £957 million in pre-tax profits over the next two financial years.
The company expressed optimism regarding government planning reforms and housing targets, although it noted that regulatory changes, including a new building safety levy, were placing pressure on the completion of new housing projects.
Consequently, shares in Berkeley rose by 1.4%.
Conversely, shares of Vanquis Banking Group declined after the lender announced an adjusted pre-tax loss of £35 million for the past year, a stark contrast from the previous year's profit.
Vanquis described the past year as pivotal, highlighting numerous challenges while also noting progress in cost-saving initiatives and addressing structural issues.
Shares in Vanquis dropped 5.3% upon closure.
Among the biggest risers on the FTSE 100 were Melrose Industries, which increased by 31.8p to reach 528p, BAE Systems, up 66.5p to 1,657p, Games Workshop, which rose by 500p to 14,900p, Rolls-Royce, which climbed 25p to 796.4p, and Scottish Mortgage Investment Trust, which increased by 27.8p to 967.6p.
In contrast, the market saw notable declines from Tesco, which fell 32.3p to 339.2p, Sainsbury’s, down 19.8p to 235p, Marks & Spencer, which decreased by 18.4p to 334.4p, WPP, down 15.8p to 616.2p, and Spirax, which dropped 145p to 6,965p.
