UK stock markets outperformed European peers on Friday as fresh data from the US showed inflation in the world’s largest economy was continuing to cool.
The FTSE 100, which is largely internationally-focused, moved 44.33 points higher, or 0.54%, to close at 8,275.38.
The top UK index was boosted by gains for utilities companies, with National Grid, Centrica, Severn Trent and United Utilities among the biggest risers of the day.
It was a busy day for global economics news with new inflation data coming from the US, Eurozone and France on Friday.
Across the pond, the Federal Reserve’s preferred inflation measure remained unchanged last month, while the core personal consumption expenditures (PCE) index slowed during April.
Inflation figures from France and the Eurozone were hotter than expected, signalling that the battle against inflation is far from over
Chris Beauchamp, chief market analyst at IG
“After the mixed trading of recent weeks investors were glad to see the slowdown in core PCE, which provided a boost for beleaguered equities,” said Chris Beauchamp, chief market analyst at IG.
“While it leaves expectations around the June Fed meeting unchanged, it at least allays some worries that an interest rate hike was becoming more likely.
“However, inflation figures from France and the Eurozone were hotter than expected, signalling that the battle against inflation is far from over.”
Read MoreSponsoredInflation in the Eurozone rose slightly to 2.6% in May, compared with 2.4% in April, according to new official figures for the 20 countries that use the euro.
Germany’s top share index, the Dax, closed in the red down 0.07%, while France’s Cac 40 rose by 0.18%.
The US’s S&P 500 was down 0.5% by the time European markets closed, while Dow Jones was up 0.15%.
The pound was down 0.1% against the US dollar at 1.272, and down 0.2% against the euro at 1.173.
In company news, shares in JD Sports slipped after the sportswear retailer revealed its annual profits dipped by 8% on the previous year.
It continued to face a challenging market, and linked the lower profits to lower revenues over the second half of the year and investments designed to help the business in the longer term. Shares in JD closed 4.7% lower.
Frasers Group said it had raised its stake in Hugo Boss after the German fashion brand last month warned of weak luxury demand in China and poor consumer confidence in the US.
The latest investment brings Frasers’ total share in the company to £305 million, adding to the retail conglomerate’s string of investments alongside owning Sports Direct, House of Fraser and Flannels. Shares in Frasers were 0.7% higher at close.
The biggest risers on the FTSE 100 were National Grid, up 38p to 881p, Centrica, up 3.45p to 142.6p, Severn Trent, up 54p to 2,390p, United Utilities, up 21p to 1,024p, and Whitbread, up 55p to 2,964p.
The biggest fallers on the FTSE 100 were JD Sports, down 6.3p to 127.5p, AB Foods, down 110p to 2,550p, Ocado Group, down 9.9p to 373.6p, Burberry Group, down 19p to 1,035p, and Spirax-Sarco Engineering, down 140p to 8,910p.
