Late market roundup: FTSE 100 ends winning week up, DAX 40 hits record

Stocks closed mostly higher on Friday, with US markets closed for Independence Day, after payrolls data earlier in the week set a "positive tone".

The FTSE 100 closed up 26.16 points, 0.3%, at 10,679.03. The FTSE 250 ended up 121.22 points, 0.5%, at 23,538.80, and the AIM All-Share fell 1.36 points, 0.2%, at 776.09.

For the week, the FTSE 100 was up 1.6%, the FTSE 250 was up 1.7%, and the AIM-All Share was up 0.9%.

The Cboe UK 100 ended up 0.1% at 1,058.73, the Cboe UK 250 was up 0.5% at 20,276.34, while the Cboe Small Companies ended 0.5% higher at 18,404.72.

In European equity markets on Friday, the CAC 40 in Paris ended up 0.4%, while the DAX 40 climbed 0.8% in Frankfurt, after earlier hitting an all-time high of 25,826.78.

In New York, financial markets were closed for the Independence Day public holiday.

Kathleen Brooks, research director at XTB, said there is a "positive tone" in markets heading into the end of the week.

"A mixture of relief post the payrolls data, a reversal of the sell-off in the chip stocks and more volatility in the yen are the main narratives today," she explained.

Thursday's weak US jobs figures have reduced chances of US rate hikes, which Brooks says tends to benefit growth stocks, as they reduce borrowing costs and increase the current value of future profits.

"This can be a powerful driver of stock price growth," she added.

Expectations for a US rate hike in July have diminished to 17% from 40%, according to the CME's Fedwatch tool. There is now a less than 50% chance of a rate hike by December; before payrolls, there was a 50% chance of two hikes by the end of the year.

The euro traded lower against the greenback, at USD1.1440 on Friday against USD1.1449 on Thursday. Against the yen, the dollar was trading at JPY161.30, up from JPY160.87 on Thursday.

The yen gave back some of Thursday's strong gains amid speculation that the Bank of Japan will intervene to support the currency.

David Morrison at Trade Nation said there were signs that traders were buying back yen on fears that Japan's Ministry of Finance may have used today's thin holiday market conditions as an opportunity to intervene.

"Yet there's no evidence that they have so far," he added.

The pound traded at USD1.3351 on Friday afternoon, down from USD1.3367 on Thursday. Against the euro, sterling ebbed to EUR1.1672 from EUR1.1681 on Thursday.

Data showed the UK services activity contracted at the sharpest pace in nearly three-and-a-half years in June, as weak demand, geopolitical uncertainty and rising cost pressures weighed on business conditions.

The final seasonally adjusted services PMI business activity index published by S&P Global fell to 48.8 points in June from 49.3 in May, remaining below the 50-point mark that separates growth from contraction.

The reading was a notch above the flash estimate of 48.7 points published in late June.

The final composite output index, which combines services and manufacturing, declined to 49.3 points in June from 49.7 in May, and came in lower than the flash reading of 49.4. It marked the weakest reading since April 2025.

S&P Global said service sector business activity fell for a second month running, with the rate of decline the steepest since January 2023.

Elsewhere, the Bank of England's closely watched Decision Making Panel for June showed year-ahead expectations of businesses' own price growth holding broadly steady at 4.0%, although comfortably higher than the pre-war level of 3.4%.

However, businesses' broader expectations of consumer price inflation for the year ahead fell from 3.7% to 3.3%, indicating a response to lower energy prices. Expected wage growth for the year ahead nudged higher to 3.5% from 3.4%.

Brent crude for September delivery traded higher at USD71.76 a barrel on Friday, up from USD70.76 on Thursday.

Gold traded at USD4,167.57 an ounce on Friday, up from USD4,124.43 on Thursday.

Dan Coatsworth, head of markets at AJ Bell, explained that gold's rebound followed the soft US jobs data.

"The shift in rate expectations led to a drop in US Treasury yields, meaning the opportunity on fixed income was slightly diminished and thereby dampening one of the drivers that's taken money away from gold this year," he commented. "Investors might have seen this market shift and decided it was time to add back some more gold."

On the FTSE 100, Pearson fell 1.4% after it apologised and announced that this year's SATs examination results in England would be delayed by more than a week.

Pearson said the delay was caused by "technical issues", pushing the publication of results from July 7 to July 16.

The National Association of Head Teachers told the BBC that "something has gone badly wrong", and that "schools must be given cast-iron assurances that the results they receive are reliable".

Education Secretary Bridget Phillipson said the delay was "deeply frustrating" for schools, parents and pupils and that the government was working to resolve it.

On the FTSE 250, Johnson Matthey rose 5.0%. It expects to complete the sale of its Catalyst Technologies business to Honeywell International by the end of August, after receiving the final regulatory approval for the deal.

The London-based speciality chemicals maker said the State Administration for Market Regulation in China has granted clearance for the transaction, meaning all conditions for the disposal have now been satisfied.

A £1.80 billion deal was struck between the two firms in May 2025, but the price tag was slashed in February this year to just £1.33 billion.

Close Brothers rose 7.9% as Shore Capital raised to 'buy' from 'hold'.

Analyst Gary Greenwood noted that motor finance uncertainty continues to weigh on sentiment, but thinks that, following recent share weakness, investors are "adequately compensated for the risks".

The biggest risers on the FTSE 100 were Lion Finance Group, up 320.00p at 11,750.00p, Weir Group, up 64.00p at 2,508.00p, ICG, up 38.00p at 1,776.00p, Metlen Energy & Metals, up 0.88p at 42.74p and St James's Place, up 26.50p at 1,303.00p.

The biggest fallers on the FTSE 100 were Entain, down 11.40p at 528.60p, Babcock International, down 17.50p at 1,039.00p, DCC, down 100.00p at 6,090.00p, Games Workshop, down 340.00p at 21,140.00p and Tesco, down 7.00p at 466.60p.

Monday's global economic calendar has a slew of construction PMI reports and UK new car sales figures.

Next week's local corporate calendar has trading statements from Shell and Unite and full-year results from Jet2.

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