London’s FTSE 100 rose on Friday as hopes increased of a potential trade deal between the UK and the US, following a week of crunch talks in Washington.
London’s top stock market index was up 53.53 points, or 0.61%, to end the day at 8,809.74.
Housebuilders Persimmon, Berkeley Group, Taylor Wimpey and Barratt Redrow were among the stocks making gains on Friday, and Rightmove shares lifted more than 3%.
The property portal reported that interest rate cuts were starting to feed through to lower lending rates, which is expected to prompt more hopeful buyers to hunt for a home.
The FTSE 100, which is internationally-focused, was also lifted amid a positive start to trading over in New York.
Prime Minister Sir Keir Starmer returned to the UK on Friday following a trip to the White House to meet with US President Donald Trump, who suggested a trade deal could spare British exports from US tariffs.
Mr Trump has said he plans to impose tariffs on Canada and Mexico starting next Tuesday, and to double the 10% universal tariff charged on imports from China
Investors have also been digesting the potential impact of greater defence spending in Europe amid crunch talks with leaders over Russia’s war in Ukraine.
Kathleen Brooks, research director at XTB, said that with Mr Trump’s “fondness for the UK, and another invitation for a state visit at Buckingham Palace, this means that the UK is now the golden child of Europe”.
“This is reflected in the UK’s asset prices: the FTSE 100 is higher on Friday as hopes grow for a quick trade deal with the US,” she said.
“The UK is also expected to avoid tariffs, after a successful trip to the US by Sir Kier Starmer.”
On Wall Street, the S&P 500 was rising 0.5%, and Dow Jones up 0.6%, by the time European markets closed.
Elsewhere in Europe, top indexes enjoyed a late-afternoon rebound having been declining during the day. In Paris, the Cac 40 rose 0.11%, and in Frankfurt, the Dax was flat at close.
The pound was about 0.1% lower against the US dollar, at 1.259, and also the euro, at 1.21.
In other company news, British Airways owner International Airlines Group (IAG) reported a record increase in profits over 2024, with the group cashing in on higher revenues per passenger and lower fuel costs.
It also announced it would be returning up to a further one billion euros (£826 million) to shareholders over the next year, on top of dividends. Shares in IAG climbed 4%.
NatWest said the Government’s stake in the bank has fallen below 6% after, which means it is no longer its biggest shareholder.
The group is expecting to return to private ownership by the middle of the year which its boss said would be a “symbolic” moment. Shares in NatWest rose 1.7%.
The biggest risers on the FTSE 100 were Weir Group, up 144p to 2,430p, IMI, up 110p to 2,002p, Persimmon, up 54.5p to 1,205p, Rightmove, up 27.8p to 671p, and Haleon, up 16p to 398.4p.
The biggest fallers on the FTSE 100 were St James’s Place, down 40p to 1,058p, Antofagasta, down 43.5p to 1733.5p, Scottish Mortgage Investment Trust, down 23.5p to 1,042p, Land Securities, down 11.5p to 564.5p, and Howden Joinery, down 14.5p to 773p.
