The FTSE 100 posted another record finish on Friday, lifted by improved sentiment after Federal Reserve Chair Jerome Powell suggested shifting economic risks could justify a US rate cut.
London’s blue-chip index edged 0.1% higher to 9,321.40, having touched an intraday peak of 9,357.51. The FTSE 250 rose 1.2% to 22,077.23, while the AIM All-Share closed 0.8% stronger at 765.03.
In New York, equities roared back from a miserable week for technology shares. The Dow Jones Industrial Average surged nearly 2% to a record intraday high, the S&P 500 climbed 1.6%, and the Nasdaq Composite advanced 1.9%. The rebound came after Powell used his Jackson Hole speech to hint that a September cut was firmly on the table, saying the “shifting balance of risks may warrant adjusting our policy stance.”
Powell noted labour market stability gives the Fed scope to move cautiously, but warned of rising downside risks to employment. On inflation, he said tariff effects will take time to filter through, keeping near-term risks tilted to the upside.
European markets also ended stronger, with the CAC 40 in Paris up 0.5% and Frankfurt’s DAX 40 higher by 0.3%.
In London, confidence improved thanks to signs of stronger consumer sentiment after the Bank of England’s latest rate cut, though concerns remain over tax and inflation. Gains on the FTSE 100 were broad, led by Standard Chartered, up 4.2%. Housebuilders Persimmon and Berkeley rose 2.3% and 2.2% respectively, while British Airways owner IAG added 2.3%.
On the mid-cap index, WH Smith rebounded 11% after Thursday’s 42% plunge on the back of an accounting error and lowered guidance. Morgan Advanced Materials gained 3.6% as Vesuvius agreed to buy its Molten Metal Systems arm for £92.7 million. The group also confirmed a fresh £10 million buyback tranche.
AIM-listed Revolution Beauty jumped 20% after confirming the return of its co-founders alongside a £15 million fundraising and plans to cut costs. Tom Allsworth will take over as chief executive in the coming days, while Adam Minto rejoins as a consultant. Boohoo, which holds 27% of the shares, participated in the placing and now sits alongside the founders with a combined near-58% stake.