FTSE 100 Set for Biggest Monthly Gain Since February

FTSE Futures

London’s FTSE 100 reached an intraday record high for the third consecutive session on Friday, poised to record both weekly and monthly gains, as strong earnings supported markets during a week marked by central bank decisions and tensions in the Middle East.

The blue-chip FTSE 100 index rose 0.5% to 10,947.73 points by 1003, poised for its biggest monthly jump since February, and sharpest weekly gain in over two months, while the midcap FTSE 250 climbed 0.4%.

  • On Friday, miners provided the most significant support to the index, with industrial metal miners rising 2.1%, reflecting an increase in copper prices. Precious metal miners opened a new tab and rose by 0.9%.
  • Heavyweight energy stocks added 1.4%, despite a dip in oil prices to below $90 a barrel. The sector has gained over 15% in July, poised to outperform its peers, as U.S.-Iran hostilities escalated, threatening fuel supplies.
  • Corporate earnings were in full swing, with investor attention divided between reports and macroeconomic factors.
  • NatWest opens new tab gained 4.3% after the lender reported a better-than-expected first-half operating profit before tax of £4.3 billion ($5.8 billion) and raised its outlook for the year.
  • IG Group opened a new tab, sinking 10.2% to the bottom of the FTSE 100 after agreeing to acquire U.S. daily fantasy sports and prediction markets operator Underdog for up to $1.3 billion.
  • Sainsbury’s opens new tab inched up 2.5% after the supermarket chain agreed to sell Argos for at least £120 million, exiting the general retail business.
  • This week, U.S. Federal Reserve Chair Kevin Warsh articulated that policymakers remain steadfast in their commitment to addressing inflation, following a divided Federal Reserve’s decision to maintain interest rates at their current levels, which has resulted in a lack of clarity regarding the central bank’s forthcoming actions.
  • The Bank of England on Thursday maintained its interest rates, yet the count of dissenting members rose to three, surpassing the anticipated two. This shift reflects concerns among policymakers regarding the economic ramifications of the ongoing conflict in Iran.
  • Greggs opens new tab shed 6% to end at the bottom of the FTSE 250 after RBC downgraded the fast-food chain’s stock to “sector perform” from “outperform”.