The FTSE 100 rallied with global equities on Friday as investors cheered the avoidance of a US government shutdown. Developments in Washington came as a welcome injection of positivity into stock after a week dominated by the uncertainty of Donald Trump’s tariffs.

• Hopes US government shutdown will be averted
• UK GDP shrinks 0.1% in January
• US futures rally
• Berkeley Group reaffirms guidance

London’s leading index rose 0.35% as S&P 500 futures rebounded and European cash equities ticked higher. The German Dax was 0.5% higher at the time of writing.

“They were buoyed by hopes that the US government would avoid a shutdown of non-essential services after Senate leader Chuck Schumer said he would vote to pass the latest funding bill,” said Derren Nathan, head of equity research, Hargreaves Lansdown.

The boost provided by the aversion of a US government shutdown superseded any concerns about UK GDP, which shrank 0.1% in January, missing economist’s estimates of 0.1% growth.

“The UK economy is stuck in the slow lane, showing no signs of growth in the first month of the year. This latest data just goes to show the mountain to climb for the Chancellor to reclaim momentum and get Britain growing at pace in 2025,” said Scott Gardner, investment strategist at Nutmeg.

“While retail sales improved in January after a sluggish run into Christmas, manufacturing PMI’s remain in contraction territory. At the same time, consumer confidence stayed low at the start of the year despite wage growth remaining higher than inflation during the final quarter of last year. The latter boost to real incomes could be a potential tailwind for consumption activity in the months ahead.”

FTSE 100 movers

The FTSE 100’s rally was broad, with miners and housebuilders among the sectors leading the charge. The poor GDP reading made a rally in retailers all the more surprising as Next added 1.3% and Kingfisher jumped 2.1%.

Housebuilders were in focus after Berkeley Group issued a trading statement and reaffirmed profit guidance of £975 million over FY25 and FY26.

“There were no surprises at the door as Berkeley delivered its third-quarter update. Remarks echoed the trend seen across other housebuilding peers, with sales rates improving over the year. While these are now running ahead of last year’s level, there’s still some way to go to reach the boom of three years ago,” explained Aarin Chiekrie, equity analyst, Hargreaves Lansdown.

“Management pointed to a need for greater economic stability and interest rate cuts to help drive the next leg of demand.”

Berkeley shares rose 2%, helping Persimmon and Taylor Wimpey rebound from disappointment with yesterday’s release of the most recent RICS survey.

Helium One has announced positive initial flow testing results from its Jackson-31 development well at the Galactica-Pegasus project in Colorado, USA, where it holds a 50% working interest.

The Galactica-Pegasus project is undergoing intensive exploratory work with Helium One releasing a string of updates throughout February and March.

The latest update sent Helium One shares over 5% higher on early trade on Friday.

Key Results

Flow testing has demonstrated increasing natural gas flow rates, reaching approximately 250 Mcfd of total gas. Strong pressure build-up following testing confirms high permeability and good reservoir communication within the formation.

The well, which reached a total depth of 1,210 feet, encountered the Lyons Sandstone Formation at 1,153 feet and was completed 57 feet into the Upper Lyons Sandstone.

Based on previous engineering analysis and observed flow rates, projected stabilised flow rates constrained for production optimisation are expected to be between 300-400 Mcfd, with a maximum potential of 500 Mcfd.

Helium Concentration

Initial laboratory analysis of gas samples from Jackson-31 showed helium concentration up to 2.2% air corrected. Based on equilibrated samples from the nearby State-16 well, which showed a helium concentration of 2.17%, the expected reservoir helium concentration at Jackson-31 could equilibrate to approximately 2.3% to 2.5%.

Although helium concentrations of around 2% aren’t the highest found in the United States, they would certainly be economically viable.

Well testing and sampling will continue throughout the current drilling campaign as development planning progresses.

The FTSE 100 gave up early gains on Thursday as investors remained cautious about the tit-for-tat trade war between the United States and its closest trading partners.

Lower-than-expected US producer prices helped contain losses as hopes of a Fed rate cut provided a reason for equity bulls to be optimistic.

Tariffs

The tensions between the US and Europe escalated today as Donald Trump responded to 50% tariffs on US whisky by threatening a 200% tariff on French wine in a post on his Truth Social platform.

Canada’s latest move was to slap 25% tariffs on around $20bn of US goods. Yesterday, the US implemented 25% tariffs on steel and aluminium imports, sending waves through markets.

Investors are becoming exhausted by the frantic nature of threats, and uncertainty is proving to be a major drag on sentiment. As a result, the FTSE 100 gave back gains on Thursday and traded negatively.

London’s leading index rose around 0.4% before falling back to trade down 0.1% at the time of writing.

“Investors remain on the edge of their seat as they weigh up the impact of tariffs and whether ceasefire talks will yield an agreement between Russia and Ukraine. Despite a small bounce-back last night on Wall Street, nervousness prevailed across Asia and Europe on Thursday,” says Russ Mould, investment director at AJ Bell.

Halma

Halma was the FTSE 100’s top gainer after announcing it was on track for another year of record EBITDA despite ‘varied’ trading in end markets.

“Halma, a FTSE 100 leader in life-saving technologies, has delivered yet another robust trading update, putting it firmly on course for an impressive 22nd consecutive year of record profits,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“Despite navigating tricky economic and geopolitical conditions, Halma’s resilient business model and agile operations mean margins are better than expected, and that should mean profit expectations for the year can tick higher. In today’s volatile environment, steady and dependable businesses like Halma – while not always headline-grabbing – offer investors an attractive blend of quality and reliability when it’s needed the most.”

Halma shares were 2% higher at the time of writing.

Housebuilders were one of the biggest drags on the index after the most recent RICS survey pointed to softness in the housing market. Persimmon and Barratt Redrow both fell more than 2%.

“UK housebuilders faced fresh headwinds in February, as RICS survey data suggested the property market might be losing some of its recent momentum,” Britzman explained.

“Fewer estate agents reported rising house prices than anticipated, with buyers and sellers both stepping back amid caution around looming stamp duty changes and wider global uncertainty.”

GenIP shares rose on Thursday after the AI analytics company announced a material increase in orders for its technology commercialisation services.

The company launched AI-enhanced services in September and has secured over 450 orders for technology assessments since their launch. This is up from 195 reported at the end of November.

Investors will likely have also been encouraged by an upbeat outlook on trading and a pipeline of potential business that could result in a ‘step-change in order flow and revenue generation’.

The update released on Thursday also outlined plans for introducing new products to serve the technology transfer market. The company said it has been working closely with its clients to identify additional requirements and will use existing infrastructure to meet these needs.

GenIP shares were 15% higher at the time of writing.

“As Chairman of the Board, I’m delighted to see GenIP’s solid commercial progress and global reach, which is a testament to the value our AI-enhanced solutions bring to the technology transfer market,” said Lord Willetts, Chairman of GenIP.

“The combination of sophisticated analytics with expert human insights has the potential to be a winning formula, providing support to universities and corporations in navigating the complexities of commercialising innovation. In a world where the pace of technological advancement is ever-increasing, GenIP is well-positioned to play a role in ensuring that the most promising discoveries reach their potential.”

Trainline shares were down heavily on Thursday after the ticketing app announced full-year results that highlighted a slowdown in ticket sales growth.

Net ticket sales grew 13% in the first half of FY 2025, and revenue increased 16% compared to the same period a year prior. For the full year, ticket sales growth and revenue growth have slowed to 12%.

Investors will be concerned about lower revenue growth as Trianline faces the looming threat of the government launching Great British Rail and a single app for booking tickets. This isn’t an existential threat for Trainline, but it will present stiff competition in the UK market where Trainline has enjoyed a large market share for many years.

The UK accounts for around two-thirds of Trainline’s ticket sales, so overseas revenue will have to increase dramatically to plug any lost sales in the UK. The problem is international sales only rose 4% last year.

Trainline shares were down 13% at the time of writing despite announcing a fresh share buyback of up to £75m.

“Investors in Trainline will be hoping the online ticket operator is not running out of steam,” said Mark Crouch, market analyst at eToro.

“Despite reporting record net ticket sales for the third year in a row, recent ticket sales have shown signs of slowing down. While adoption of digital ticking has seen revenue and consumer sales continue to grow, this was at the lower end of guidance. The announcement of a £75m share buyback this morning will hopefully add some fuel to the furnace for the share price.

“Threatening to further derail Trainline’s momentum is government plans to launch a state-backed rival to the online ticket operator. Exactly how much of a threat this might pose to Trainline is still up for debate. Trainline’s track record of delivering efficiency and value to customers are fundamental to its success – traits not typically associated with government services. Nevertheless, investors are weary, and after this morning’s underwhelming update, they have good reason to be.”

The FTSE 100 gained on Wednesday as investors tentatively dipped their toes back into stocks in early trade after another poor finish to yesterday’s trade.

Gains accelerated after a softer-than-expected US CPI raised hopes of a Fed rate cut. Consumer prices rose 2.8% in February, compared to estimates of 2.9%.

After days of sharp declines in Europe and the US, equities showed signs of stabilisation on Wednesday. But as we’ve seen already this week, these gains could be short-lived should Trump decide to attack another trading partner with a fresh tariff.

“The winds keep blowing in different directions on tariffs that it is impossible for markets to establish the lay of the land,” said Russ Mould, investment director at AJ Bell. 

“Donald Trump keeps moving the goal post and investors are getting fed up. Metal tariffs are today’s special on the menu and they’ve been a major catalyst for many of America’s trading partners to retaliate with tariffs on other goods.”

It’s difficult to call the 0.6% gain in London a rebound, as it barely retraces yesterday’s losses. It certainly doesn’t put a dent in losses since the FTSE 100 flirted with all-time highs just last week. 

Nonetheless, the rise in London’s flagship index will be welcomed by equity traders who have been battered by Trump’s outlandish trade policies.

That said, Donald Trump’s change of approach to Ukraine could be seen as a major positive for stocks after Ukraine-US talks resulted in the commitment to a cease-fire.

FTSE 100 movers

Most industry sectors were higher on Wednesday, with banks and financials among those rising on the day.

The best performers were Melrose and Spirax as bargain hunters picked the shares up after heavy losses for the pair following soft updates. Melrose was the top riser with and eye-catching 8% gain.

The biggest drag on the index were retailers who dropped in sympathy with poor results from Spanish Inditex’s downbeat assessment of the industry. 

“JD Sports, Primark-owner Associated British Foods and Next retreated after negative read across from Inditex’s results. Fears of a slowdown in the retail sector were to blame,” Russ Mould said.

AB Foods was the top faller, losing 4%.