The FTSE 100 index closed up 0.31 per cent, or 33.20 points, to finish at 10,901.09 on Friday, reaching its highest level since before the Iran war. A surge in oil prices helped fuel London's blue-chip market near the 11,000 point mark. The market has gained nearly 10 per cent in the year to date following a strong 2025 performance, which was its best since the aftermath of the financial crisis.
The index was on track to approach 11,000 points in the days before the Middle East conflict began, before falling as inflation fears returned. The market tumbled below 10,000 points in March, and its recovery has been rocky since. However, rising oil prices and a series of strong corporate earnings reports have helped the index build momentum in recent weeks.
Corporate earnings and leadership changes
Mining stocks led the market gains on Friday. Fresnillo shares rose 4.6 per cent, while Endeavour Mining gained 4.06 per cent. Mining companies benefited from commodity demand for copper, while energy majors were supported by higher crude oil prices.
Consumer stocks also enjoyed gains this week. Diageo closed up 3.32 per cent after chief executive 'Drastic Dave' announced a £740 million cost-cutting plan. The plan includes restructuring regional teams and supply chains, leading to significant job cuts following a period of falling sales.
JD Sports shares rose 1.58 per cent on Friday afternoon following the announcement of a new chair. Peter Agnefjäll will join the board in September, replacing Andy Higginson, who left abruptly in April after reportedly attempting to remove chief executive Régis Shultz.
Advertising group WPP gained nearly 38 per cent this week after publishing its half-year update on Thursday. Investors were reassured that the company's turnaround plan remains on track as it reported a smaller decline in sales.
Market trends and index records
The FTSE 100 has historically lagged behind US stock markets due to a lack of major technology companies. However, investor concerns over an artificial intelligence bubble have driven buyers toward value stocks in London. Low equity valuations, takeover bids, share buybacks, and special dividends have also attracted overseas investors.
The FTSE 250 index, which focuses more on domestic companies, also reached an all-time high on Friday after rising 0.65 per cent, or 159.44 points, to 24,854.86. A series of takeover offers boosted share prices, including confirmation that private equity firm Apollo will buy airline Easyjet for £5.7 billion.
The UK stock gains reflect growing momentum across global equity markets, with both the S&P 500 and Nasdaq expected to close the week higher.
