LONDON: UK stocks indexes rose on Friday, finishing the week on a high after a combination of factors including the US Supreme Court striking down President Donald Trump’s tariff, expectations of a Bank of England rate cut, and easing concerns over artificial intelligence disruption.
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The blue-chip FTSE 100 gained 0.5% to close at 10,745.76 points, hitting a record intraday high and marking its largest weekly rise since mid-December. The domestically focused FTSE 250 climbed 0.7% and also finished the week higher. UK officials said they still expect the privileged trading relationship with the US to remain despite the tariff ruling.
Geopolitical tensions in the Middle East and potential defence cooperation in Europe lifted UK defence stocks, which gained 6.7% over the week. Meanwhile, the auto sector faced pressure: luxury carmaker Aston Martin fell 1.4% after warning of a larger annual loss and announcing plans to sell naming rights for its F1 team. The broader auto sector also lost 1.4%.
Anglo American posted a $3.7 billion loss due to a write-down in its diamonds business, but shares rose 1% alongside stronger base and precious metal prices.
Investor sentiment was bolstered by data showing inflation approaching the Bank of England’s 2% target, while strong manufacturing and retail sales data hinted at potential price pressures. Traders currently see a 78% chance of a 25-basis-point rate cut next month to support the labour market.
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Chris Beauchamp, chief market analyst at IG Group, said the FTSE has become a “rare safe haven” in 2026, attracting investors out of overheated US tech stocks. AI disruption concerns have temporarily eased, though geopolitical tensions with Iran remain under scrutiny. Among individual movers, Diageo rose 3.9% following reports of a planned executive shake-up by new CEO Dave Lewis.