By Ankita Yadav
(Reuters) -The UK’s FTSE 100 extended its winning streak to a fourth week on Friday, as investors looked past economic concerns to focus on the Bank of England’s policy path, while a slate of positive corporate updates also lifted mood.
The internationally-oriented FTSE 100 closed 0.2% higher, adding 0.6% for the week, while the midcap FTSE 250 index rose 0.6%. For the week, the domestically focussed index gained 1.3%.
The blue-chip index surged to all-time highs earlier this week as investors shrugged off domestic growth concerns to take comfort in a relatively U.S. tariff-shielded market, higher commodity prices and hopes of a Bank of England rate cut.
“The FTSE 100 continues to prove that the stock market is not the economy, with rising unemployment, a black hole in the public finances, and resurgent inflation pressures doing little to dampen sentiment for the UK’s top stock index,” said Joshua Mahony, chief market analyst at Scope Markets.
The FTSE 100 has gained about 10% so far this year, surpassing the pan-European STOXX 600 index’s 7.7% gains.
Traders are currently pricing in a 78% probability of a 25 basis-points rate cut at the Bank of England’s policy meeting next month.
Among company moves, Burberry shares jumped 5.5% to their highest in nearly 17 months after the luxury brand’s comparable retail sales fell less than expected. The strong earnings showed early signs of a recovery for the company that has struggled with underperformance.
The UK’s personal goods index surged 5% on the back of Burberry to its highest in five months.
Heavyweight BP also gained 0.7% after the energy major said it had agreed to sell its U.S. onshore wind business, bp Wind Energy, to U.S.-based electricity transmission systems operator LS Power.
Elsewhere, GSK was the biggest drag on the blue-chip index, dropping 4.6% to a three-month low, after a U.S. FDA advisory panel recommended against approving the pharmaceutical giant’s blood cancer drug Blenrep, citing earlier concerns over eye-related side effects.
($1 = 0.7441 pounds)
(Reporting by Ankita Yadav in Bengaluru; Editing by Leroy Leo and Louise Heavens)
