FTSE finishes higher as European markets steady

London’s top financial indexes made further gains on Friday as calm returned to trading across European markets.

The FTSE 100 moved higher during the session to end roughly flat for the week despite starting with its weakest session of the year so far on Monday.

Banks, mining and property firms were among those to have positive sessions.

London’s top index finished 23.13 points, or 0.28%, higher to end the day at 8,168.1.

Across the Channel, German stocks were robust as inflation data struck analyst expectations.

The Cac 40 in France ended 0.31%  higher and the Dax index was up 0.12% at the close.

AJ Bell investment director Russ Mould said: “More reassuring data on the US economy, as jobless claims came in below forecasts, has helped calm fears over recession risks and made the calls for emergency rate cuts from the Federal Reserve earlier in the week appear premature.

“Mining stocks supported the move higher in the FTSE 100 as an uptick in Chinese inflation allayed fears about deflation and economic slowdown.”

In the US, Wall Street’s main indexes were touch lower after trading opened as some chose to sell on the back of Thursday’s tech-led rally.

Meanwhile, sterling recovered more ground to bring it back to its level from Tuesday, before it had plunged to its lowest for a month.

The pound was up 0.14% at 1.276 US dollars, and was up 0.1% at 1.168 euro.

In company news, Hargreaves Lansdown made further gains during the session after the firm agreed to a takeover offer worth £5.44 billion from a consortium including buyout giant CVC Capital Partners and the Abu Dhabi wealth fund.

Investors in the Bristol-based investment platform will get 1,110p per share in cash, plus a dividend of 30p per share as part of the deal.

Shares in Hargreaves Lansdown rose by 2.3% to 1,102p as a result.

Bellway was also up for the session after the London-listed housebuilder said it was optimistic about the future of the property market despite a 30% drop in the number of homes it sold over the past year.

Bellway said falling mortgage rates, slower inflation and wage rises have helped lift consumer confidence and make homebuying more affordable.

Shares in the business were up 3.4% at 2,748p at the close.

Building materials retailer CMO Group was a notable riser after it said it was encouraged by sales in July, particularly in its plumbing division, despite a slump in sales.

CMO shares therefore rose 8.5% to 16p despite sales dropping by around 17% over the past half year in the face of challenging market conditions.

The price of oil lifted again as it was supported by calmer markets and renewed positivity about global economic growth prospects.

A barrel of Brent crude oil was up by 0.37% to 78.24 US dollars (£61.30) as markets were closing in London.

The biggest risers on the FTSE 100 were EasyJet, up 13.4p to 436.7p, Beazley, up 17.5p to 723p, JD Sports, up 2.85p to 125.45p, Hikma Pharmaceuticals, up 46p to 2,038p, and United Utilities, up 22.2p to 990p.

The biggest fallers on the index were Spirax, down 240p at 7,660p, Burberry, down 15.8p at 684.8p, Pershing Square, up 60p at 3,562p, Endeavour, down 25p at 1,538p, and Centrica, down 1.75p at 123.25p.