FTSE 100 close: London markets round off the week higher as investors boosted by improved consumer confidence
Markets closed higher on Friday as investors were boosted by an increasingly positive consumer outlook in the UK.
The capital’s premier index jumped 0.40 per cent to 7,773.80 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, remained roughly steady at 19,300.04 points.
Investors were boosted by a positive consumer confidence report which saw confidence jump for the fourth month in a row. The increase was driven by an uptick in optimism over personal finances and a rosier economic outlook.
Although the score was still negative at -27, GfK’s client strategy director Joe Staton said “the overall trajectory this year is positive and might reflect a stronger underlying financial picture across the UK than many would think.”
A report from Lloyds also showed nearly every sector of the UK economy stepped up headcount last month.
Its monthly employment survey showed ten of the 14 sectors it tracks took on more staff over the last month, signalling the UK jobs market is holding up pretty well despite the economic slowdown.
The day’s biggest corporate news came from Tesco as chair John Allan said he will quit his role fearing accusations about his behaviour are becoming a “distraction”. Its shares were down 0.5 per cent.
The former president of the Confederation of British Industry (CBI), which has been embroiled in serious accusations of sexual misconduct including rape, will step aside from Britain’s biggest supermarket immediately.
The supermarket stood by the chairman saying there had been “no findings of wrongdoing” and his tenure was nearing its end, with the search for a new chair already underway.
On the FTSE 250 Nationwide, was trading 1.3 per cent lower.
The country’s largest building society saw record profits on the back of rising interest rates and announced it would be handing out £340m to its customers. However, provisions for bad loans rose to £126m in the year, compared to a release of £27m last year.