In a significant market development, UK shares witnessed a substantial rise, driven by the robust performance of energy and mining stocks. The notable surge in these sectors can be attributed to the upward trajectory of oil prices, creating a positive momentum in the financial landscape.
FTSE 100 Ends Week on High Amid Energy Surge and Global Market Records
Closing the week on a positive note, London's FTSE 100 surged into the green, gaining 52.48 points, or 0.69%, to settle at 7,682.5. The robust performance was fuelled by strong showings in banks, miners, and energy firms, with notable contributions from Standard Chartered and Anglo American. Energy stocks particularly benefited from a 2.7% rise in Brent crude oil prices, reaching $84.1 per barrel.
Simultaneously, in the US, the S&P 500 marked another record high, driven by outstanding performances from leading players like chipmaker Nvidia. The index exhibited a 0.5% increase, while the Dow Jones saw a 0.1% rise upon the closure of European markets.
Germany's Dax continued its record-breaking trend, posting a 0.32% gain on Friday. In contrast, France's Cac experienced a 0.55% decline.
Interestingly, despite ongoing signs of economic softness in China, as reflected in the fifth consecutive month of slowing factory activity according to the official manufacturing PMI survey, global markets demonstrated resilience.
Currency-wise, the pound strengthened by 0.2% against the US dollar, reaching 1.265, and experienced a marginal 0.1% dip against the euro, settling at 1.168.
Pearson's Profit Surge and ITV's Strategic Streaming Shift Drive FTSE 100 Dynamics
In recent company developments, Pearson experienced a surge in share prices following a substantial increase in profits. The education publisher also expressed optimism about capitalizing on advancements in artificial intelligence (AI) technology. Additionally, Pearson revealed plans to repurchase £200 million worth of shares from investors, resulting in a 5.6% boost in its share price.
Meanwhile, ITV witnessed positive market dynamics as the BBC acquired its stake in BritBox International for £255 million. This strategic move allows ITV to concentrate on its domestic streaming service, ITVX. With the international version of the streaming platform now fully owned by the BBC's commercial arm, ITV pledged to return all proceeds from the sale to shareholders, contributing to a significant 14.3% surge in its share price on Friday.
The FTSE 100 index experienced notable gains from key players in various sectors. Pearson led the pack, with its shares rising by 53.4p to 1,014p. Endeavour Mining followed suit, gaining 49p to reach 1,324p, while Anglo American and Standard Chartered saw increases of 59.8p (1,760.8p) and 23.2p (690.8p), respectively. Natwest Group also contributed to the positive momentum, with a 7.7p rise to 246.8p.
Conversely, some companies faced declines on the FTSE 100. Ocado witnessed a decrease of 35.4p, closing at 476p, followed by Whitbread with a drop of 65p to 3,238p. Hikma Pharmaceuticals experienced a dip of 33.5p to 1,933.5p, while Bunzl and Melrose Industries recorded declines of 49p (3,104p) and 9.2p (625.8p), respectively.