The FTSE 100 has had its best week in months this week as optimism around interest rates and the technology sector propelled UK stocks higher. Better data out of China helped lift the FTSE 100’s natural resources sector – an integral factor in this week’s gains.
Higher oil prices helped lift energy majors BP and Shell throughout the week while improving sentiment around China and upbeat broker upgrades supported the miners.
Rio Tinto, Glencore and Anglo American were around 1-2% higher around 2pm on Friday and were among the best performers on the week.
Housebuilders joined in the rally on Friday after the ECB made a ‘dovish hike’ signalling they could be done with rate hikes. The Bank of England will meet next week to decide on rates and hopes are the ECB’s positioning will be mirrored by the BoE’s Monetary Policy Committee.
The FTSE 100 was trading at 7,728 at the time of writing after touching the highest intraday level since May earlier in the session.
“A solid showing from Wall Street last night put investors in a good mood and that positivity extended across Europe and most of Asia on Friday,” says Russ Mould, investment director at AJ Bell.
“Helping to lift spirits was a strong debut from Arm on the US market and the ECB signalling the end of its policy tightening. That’s exactly what investors want to hear, namely the end of the rate hiking cycle and excitement around growth stocks once again.”
ARM Holdings closed up 25% on its first day of trading yesterday and markets will closely watch how it performs today for signs of sustained interest.