The FTSE 100 edged higher on Friday, adding 0.3%, as strength in mining shares helped the index overcome a mixed session.
The FTSE 250 performed better, gaining 0.7%, with investors continuing to focus on earnings and the latest signals on where interest rates could head next.
Gold rally keeps miners in focus
Mining stocks were once again among the main drivers in London, helped by the continued rise in gold prices. Fresnillo climbed 4.6%, while Hochschild Mining jumped 6.2% and Endeavour Mining gained 4.1% as precious metals remained in demand.
The move follows a strong run for gold-related shares, with investors continuing to favour companies exposed to the metal’s rally. Higher gold prices can provide a significant boost to miners’ margins, particularly when production costs remain under control.
Other notable movers
Diageo was another stock adding to the positive tone, rising 3.3% after extending Thursday’s gains. Investors continued to digest chief executive Dave Lewis’ new strategy for the drinks group, which includes $1 billion of cost savings and a plan to make the business more efficient.
On the FTSE 250, Goodwin jumped 9.8% after confirming it is reviewing strategic options for its Mechanical Engineering division, including the possibility of selling a substantial part of the business.
Recruitment stocks also continued their recovery. Hays rose 5.8%, taking the shares to more than double their April lows, while Michael Page gained 3.8% as investors looked for signs that conditions in the jobs market could improve.
Oxford BioMedica fell 15% after cutting its 2026 revenue expectations by 17%, with the cell and gene therapy specialist blaming delayed customer programmes, changes to procurement plans and slower progress at its Durham, North Carolina facility.
US jobs data changes rate expectations
The focus later moved to the US, where a weaker-than-expected employment report shifted expectations around the Federal Reserve’s next moves.
The US economy unexpectedly lost 23,000 jobs in July, well below forecasts for an increase of 80,000, while previous figures for May and June were revised lower by a combined 103,000 jobs.
The data raised concerns about the strength of the labour market but also increased expectations that the Federal Reserve may have less pressure to raise interest rates.
Markets have been closely watching whether policymakers will need to keep rates higher for longer as inflation gradually eases.
US shares reacted positively, with the S&P 500 gaining 0.6%, the Nasdaq Composite rising 1.3% and the Dow Jones Industrial Average adding almost 0.3%.
The next few weeks could prove important for rate expectations, with further inflation data, another jobs report and the Federal Reserve’s Jackson Hole symposium all due before the September policy meeting.
Investors will be looking for clues on whether the recent slowdown in employment is temporary or the start of a broader cooling trend.