The FTSE 100 was on the verge of recovering all the losses sustained in the wake of Donald Trump’s tariff announcement as the index surged higher on Friday amid strong earnings from NatWest and Shell, and hopes China and the US would reach an amicable resolution to their trade spat.
London’s leading index was 0.7% at the time of writing, as investors looked past mixed earnings from US tech to focus on UK-centric earnings and an easing in tension between the US and China.
“The FTSE 100 was on course to extend its winning streak after signs of a potential de-escalation of the tariff stand-off between US and China gave investors real heart,” said AJ Bell investment director Russ Mould.
“There were strong gains in Asia and on Wall Street overnight. The latter helped by strong after-hours results from Microsoft and Meta Platforms on Wednesday. Although subsequent more mixed earnings from Apple and Amazon may have soured sentiment a touch.
Shell shares rose after the oil major posted encouraging results demonstrating financial prudence amid lower energy prices.
“Despite sizable losses across the energy sector, Shell smashed analysts’ expectations by over $1bn in Q1 as strict capital discipline, a hallmark of Shell, continues to drive strong shareholder returns and insulate the business from market shocks,” said Mark Crouch, market analyst for eToro.
“Falling oil and gas prices, OPEC production increases, and tariff volatility have weighed heavily on producers. But for Shell, whose profits jumped to $5.6bn, strategic execution and a clear identity has delivered in droves.”
Shell shares rose 3%, adding a significant number of points to the index.
The FTSE 100 also benefited from a strong bid in miners on hopes of a deal between China and Donald Trump. Anglo American, Glencore, and Rio Tinto all rose more than 1%.
NatWest hit the highest levels since 2011 in early trade before retreating following the release of upbeat Q1 earnings that showed the bank was in rude health. NatWest shares were 0.3% higher in mid-morning trade.
“NatWest has taken the spotlight this week in banking land, smashing profit expectations thanks to solid top-line growth and tight cost control,” explained Matt Britzman, senior equity analyst, Hargreaves Lansdown.
“Like we’ve seen across the sector, impairments came in a bit higher than expected as the bank plays it safe in case the economic backdrop worsens – but for now, borrowers are holding up well, so there’s no major red flag there.”
Haleon was the FTSE 100 top riser after UBS analysts bumped their price target up to 460p. Haleon was 3% higher at 400p at the time of writing.