The FTSE 100 closed up 0.1% at 7,196.2 on Friday, ending the week with a 0.3% gain over the past five days after the UK government saw a wave of resignations from the cabinet culminating in Prime Minister Boris Johnson’s departure.
The market saw the price of oil climb higher, with benchmark Brent Crude trading at $107 per barrel. Shell shares rose 0.4% to 2,043.5p, with BP increasing 0.3% to 386.5p and Harbour Energy leaping 2.1% to 325.7p.
“It’s been a chaotic week for politics and a rollercoaster ride for investors as markets experienced yet more wild swings,” said AJ Bell investment director Russ Mould.
“Investors continue to lock on to oil stocks, with BP, Shell and Harbour Energy among the top risers.”
JD Sport Fashion appoints former Morrisons executive
JD Sports Fashion shares climbed 2.2% to 124.9p as the company announced Morrisons veteran Andy Higginson as chair to replace Peter Cowgill, who resigned after heavily-publicised disagreements created a rift between himself and the JD Sports Fashion board of executives.
“Having closely followed JD’s success over the years, I see it as an exceptional business, with a strong strategic position,” said Higginson.
“The Board has clearly been addressing its governance and risk management structure and I very much look forward to working with the Board and the senior management team, including our new CEO once appointed, to bring my experience to bear and capitalise on the strength of the brands, market positions and channels to market including the global retail store network.”
The market is set to keep a close eye on Higginson, given the recent storm of controversy JD Sports has weathered in the last several months, ranging from price-fixing investigations to corporate governance worries.
“Given how JD’s share price has slumped in recent months amid market worries about consumer spending and the surprise departure of Cowgill, Higginson will be under pressure from day one to try and improve the company’s reputation from a boardroom perspective, and to find the right person to lead the business,” said Mould.
“Despite all the drama, JD has been a resounding success and its core business model certainly doesn’t need a rethink.”
Housebuilders dip as cost of living crisis bites
Meanwhile, soaring house prices continued to suffer the pressure of recession alarms, as housebuilder shares fell on concerns that the market would be unable to sustain its high prices as the cost of living crisis continued to hack bars off the property ladder for consumers.
Taylor Wimpey shares fell 1.6% to 112.9p and Barratt Developments dipped 0.1% to 456.5p.
“Housebuilders didn’t fare as well, with Taylor Wimpey … taking a knock amid mixed messages about the sector which is battling materials, energy and labour cost inflation.”
“There is also a growing sense that the property market can’t sustain its positive momentum if we get a recession.”
US jobs report signals hawkish Fed
Across the Atlantic, a stronger than expected US nonfarm payrolls report saw American markets slide, with the S&P 500 falling 0.4% to 3,885.6 and the Dow Jones dropping 0.2% to 31,292.4.
Investors expect the US Federal Reserve to act more hawkish than previously anticipated in light of an unchanged unemployment rate of 3.6% and high jobs growth in a move to tackle inflation, which is currently at a 40-year high of 8.6%.
