Britain’s FTSE 100 index of blue-chip shares closed at 10,679 points on Friday, up 0.25% and its highest level since 2 March, the first trading day after the Iran war began. The index earlier hit an intraday high of 10,701, its strongest since the first week of the conflict, as hopes of a US-Iran peace deal pushed oil prices lower.
Service sector activity in the UK contracted in June, but investors remained confident after a weaker-than-expected US employment report dampened expectations of interest rate rises. The pound headed for its best week since early April, while the US dollar index was on track for its worst weekly drop in that period.
Market gains were also driven by a rotation out of AI and chip stocks into ‘old economy’ companies, many of which are listed in London. Top risers included Fresnillo (+2.5%), Weir Group (+2%) and SSE (+1.8%). The trend lifted Germany’s DAX to a new record high.
In Germany, thousands of workers protested outside Mercedes-Benz factories against cost-cutting plans that could increase working hours without extra pay. In Brazil, service sector activity rose in June supported by World Cup-related spending, though firms cut jobs for the first time in five months.
