The FTSE 100 gained on Friday as investors reacted to poor UK GDP figures and another record high for US stocks overnight.
London’s leading index was up 0.3% at 9,732 at the time of writing.
Bad news for the UK economy was proving to be good news for UK stocks on Friday, with contracting GDP 0.1% in October giving the Bank of England all the ammunition it needs to cut interest rates next week.
“For markets and policymakers, such data typically heighten expectations for further Bank of England easing,” explained Daniela Hathorn, Senior Market Analyst, Capital.com.
“Market data suggests that they are now more confidently pricing at least a 25-bp rate cut at the next BoE decision, with further easing more likely to come in 2026 given the downside risks to growth and rising unemployment trends flagged by other indicators.”
The FTSE 100 was also given a boost from US equities. A stronger session in London followed a record high for the S&P 500 overnight, driven by banking shares.
“The S&P 500 has hit yet another all-time high to 6,901, as the VIX – the index that measures volatility – fell to a welcome three month low,” said Emma Wall, Chief Investment Strategist, Hargreaves Lansdown.
“The US index hitting a new high is nothing new – but what has driven the market up is a change for the theme that has dominated this year. AI stocks have been the most successful sector of 2025 – and remain so – but sentiment has cooled in the last 48 hours. Instead, financials and materials have boosted market valuations overnight.”
Concerns around AI are unwelcome, but investors will be encouraged to see a little more breadth in US equity gains.
In London, it was more of the same, with Fesnillo and Endeavour Mining topping the leaderboard. Fresnillo is up a whopping 380% so far in 2025, and it’s the FTSE 100’s best performer of the year by far.
Ashtead continued to attract bargain-hunting traders as its rebound from a recent sell-off gathered pace.
Standard Chartered and HSBC rose as the good mood around US banks rubbed off on the pair of globally focused institutions. HSBC, interestingly, is trading at an all-time high.