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The boost provided by the aversion of a US government shutdown superseded any concerns about UK GDP, which shrank 0.1% in January, missing economist’s estimates of 0.1% growth.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