(Reuters) -London’s FTSE 100 logged its biggest weekly jump since April to close at record high on Friday, when financials led the way up on growing expectations of a Federal Reserve interest rate cut.
The blue-chip index finished 0.7% higher at record high on the day and gained 2.2% for the week.
The mid-cap index also rose 0.7%, capping off the week with 2.3% gains.
Financial stocks on Friday were the standout performers across both indexes, with the banking sector climbing 1.8% and investment banking shares surging 2% on the day.
Precious metal miners Fresnillo and Endeavour Mining were also among the FTSE 100’s best performers, gaining 1% and 2%, respectively due to rising gold prices.
The benchmark FTSE 100 achieved record highs several times throughout the week. Healthcare stocks, with 12% weekly gains, primarily drove the weekly advance. The sector was bolstered by optimism following Pfizer’s deal with the U.S. administration, which analysts said reduced uncertainty surrounding pharmaceuticals.
Meanwhile, the ongoing U.S. government shutdown meant the jobs report, originally scheduled for Friday, was delayed.
Investors remained optimistic even so, with traders pricing in an almost certain Fed rate cut later this month, following disappointing private payrolls data earlier this week.
In Britain, a survey showed business activity grew at the slowest pace in five months in September as companies and consumers put big spending decisions on hold, waiting to see if they would be hit by higher taxes in November’s budget.
Many economists believe that finance minister Rachel Reeves will need to implement tax hikes or reduce spending.
Among individual stocks, pub group J D Wetherspoon fell 5.6%, placing it at the bottom of the mid-cap index after flagging higher costs due to potential tax increases and national insurance contributions.
Technical products and services distributor Diploma gained 2.3% after brokerage RBC raised its rating to “outperform” from “underperform”.
(Reporting by Ragini Mathur in Bengaluru; Editing by Sonia Cheema and Barbara Lewis)
