London’s FTSE 100 experienced a modest increase on Friday, propelled by energy stocks in response to rising oil prices. However, the index was poised to end a four-month winning streak, despite receiving a temporary uplift from budget-related developments earlier in the week. The globally focused FTSE 100 was up 0.1% by 1125, while the midcap FTSE 250 was flat, on pace for a small monthly drop. Oil & Gas opens new tab added 0.7%, tracking a gain in oil prices amid uncertainty surrounding Russia-Ukraine peace talks. Market participants are closely monitoring the impending results of the OPEC+ meeting scheduled for Sunday.
Chemicals climbed 0.9% with shares of Johnson Matthey up 1.8% after J.P. Morgan upgraded its rating on the company to “overweight” from “neutral.” Both the FTSE 100 and FTSE 250 are poised for solid weekly gains following the announcement by finance minister Rachel Reeves earlier this week of a substantial tax-raising budget, which has provided her with increased flexibility to achieve her deficit-reduction objectives. Traders have increased their expectations for a U.S. Federal Reserve rate cut in December, spurred by dovish comments from policymakers, which in turn has positively influenced UK stocks during the final two weeks of November.
Long-dated gilt yields remained unchanged following a decline earlier this week, whereas the pound experienced a slight depreciation against the dollar. Precious metal miners are on pace to be the best performing sector this month as gold prices rallied, while the aerospace and defence sector is among the laggards as prospects of a peace deal between Russia and Ukraine grew. Among other moving stocks, Burberry fell 2.3% after J.P. Morgan downgraded the luxury firm’s rating to “underweight”.
Mitchells & Butlers opened new tab, jumped 11.5% after the pub and restaurant operator reported annual profit above expectations. In the interim, market participants remained vigilant for developments regarding a disruption at the preeminent exchange operator, CME Group, which affected trading in currency and futures markets in the United States on Friday.