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The FTSE 100 began Friday’s session on a positive note, gaining 23 points, reaching 9,124, as investors paid attention to corporate news from its biggest constituents and digested clues about their future monetary policy preferences from the Bank of England (BoE), following a mixed close on Wall Street and caution across Asian markets.
Initial gains were driven by mining and pharma stocks, with Glencore climbing 2.2% after announcing more share buybacks. Glaxo Smith Kline (GSK) also received buying interest after settling an important patent dispute, rising over 1% in the early session.
As far as the index, there were contributions from AstraZeneca, Intertek, and Associated British Foods. Marks & Spencer and Rio Tinto added further support. In contrast, IMI and Intercontinental Hotels Group were among the top laggards, each slipping over 1%.
GSK settled worth $370 million with CureVac, resolving an mRNA patent conflict tied to Pfizer and BioNTech’s COVID and flu vaccines. The deal includes upfront cash and a 1% royalty on future US sales, with additional payments possible if CureVac’s merger with BioNTech proceeds.
Flutter Entertainment, which delisted from the FTSE 100 earlier this year after shifting its primary listing to the US, posted upbeat Q2 results. Revenue surged 16% year-on-year, while adjusted earnings climbed 25%, prompting the company to upgrade its full-year guidance to $17.3 billion in revenue and $3.3 billion in adjusted EBITDA.
Despite the positive numbers, Flutter’s shares opened slightly lower, likely a result of recent sharp gains. The stock has risen more than 50% over the past 12 months.
The FTSE 100's recovery comes a day after the BoE reduced interest rates by 25 basis points to 4%, a move largely expected by markets. However, the bank’s hawkish tone and an unusual 5-4 voting split on the policy committee created uncertainty about the path ahead.
Analysts noted the decision could limit expectations for further rate cuts, supporting the pound but potentially tightening financial conditions for businesses.
US markets ended Thursday mixed, with the Dow Jones down 0.5%, while the Nasdaq hit a record high, buoyed by expectations of targeted exemptions in new US tariffs. In Asia, Japan’s Nikkei 225 rose over 1.7%, while Hong Kong’s Hang Seng declined 1% amid regional trade concerns.
The British pound remained firm, trading near $1.344, as traders assessed BoE's rate outlook. There appears to be cautiousness among currency traders, balancing lower interest rates against signals of limited policy easing ahead.
