London markets have ended the week on an optimistic note with the FTSE 100 clawing back earlier losses to reach a fresh one-month high.
The UK’s top share index was lifted higher with NatWest shares making significant strides following its half-year earnings update.
It closed 99.36 points higher, or 1.21%, at 8,285.71.
It was also a bumper session for the UK-focused FTSE 250 which soared by more than 2% on Friday.
Joshua Mahony, chief market analyst for Scope Markets, said the FTSE 100 index was “pushing sharply higher thanks in part to a 7% spike in NatWest shares”.
“However, the strength seen throughout the UK index has been relatively well distributed, with mining, energy, banking, healthcare, and industrial stocks all enjoying a strong end to the week.”
Kathleen Brooks, research director for XTB, said NatWest’s results could be seen as a “reflection on the UK economy, and they are sign that the UK economy remains resilient even in the face of high interest rates”.
The bank reported higher-than-expected earnings and also upgraded its revenue and profitability outlook for the year.
It was a strong session for other top global markets. In Paris, the Cac 40 surged by 2.4%, with the city kicking off its opening ceremony for the 2024 Olympic Games.
In Frankfurt, the Dax climbed by 0.65% at the end of the day.
Over in the US, the S&P 500 had moved 1.3% higher and Dow Jones jumped about 1.8% by the time European markets closed.
The pound was rising about 0.1% against the US dollar at 1.29, and was more or less flat against the euro at 1.185.
The price of Brent crude oil dropped by 1.75% to about 81 US dollars per barrel.
In other company news, shares in Drax soared after the owner of the North Yorkshire power plant said it would share £300 million among shareholders.
The company said its pre-tax profit jumped to £463 million in the first half of the year, up from £338 million the prior year.
The strengthened finances was part of the reason behind the decision to start a share buyback programme, which is expected to begin later this year. Its shares were up by 14% at close.
The biggest risers on the FTSE 100 were Natwest Group, up 23.8p to 361.9p, Anglo American, up 115p to 2,380p, Intertek, up 205p to 5,015p, Burberry, up 30p to 747.2p, and JD Sports, up 3.9p to 123.2p.
The biggest fallers on the FTSE 100 were Segro, down 15.2p to 892p, Rightmove, down 8p to 560p, Pershing Square, down 46p to 3,774p, Hargreaves Lansdown, down 6.5p to 1,098.5p, and Fresnillo, down 3p to 579p.