London’s FTSE 100 traded higher on Friday, supported by gains in defensive healthcare and consumer stocks as investors awaited the latest U.S. non-farm payrolls report for fresh signals on the Federal Reserve’s interest rate outlook.
The blue-chip FTSE 100 index rose 0.5% to 10,532.93 points, while the domestically focused FTSE 250 slipped 0.2% amid cautious trading ahead of the key U.S. employment data.
Healthcare stocks led the market higher, with the sector climbing 1.4% after AstraZeneca announced a deal worth up to $1.77bn with China’s CSPC Pharmaceutical Group to develop new treatments for kidney disease.
Consumer-focused companies also posted solid gains, with Tesco, Coca-Cola HBC and J Sainsbury rising between 1.8% and 2.6% as investors favoured defensive sectors.
Market attention remained firmly on the upcoming U.S. non-farm payrolls report, which investors hope will provide further insight into labour market strength and the future direction of Federal Reserve monetary policy.
Economists expect the closely watched employment figures to keep the possibility of a September interest rate increase on the table as inflationary pressures linked to the U.S.-Iran conflict continue to influence global markets.
On the geopolitical front, indirect talks between the United States and Iran concluded in Doha without a major breakthrough, although oil prices eased as concerns over potential disruption to shipping through the Strait of Hormuz continued to fade.
Among individual UK stocks, electricals retailer Currys fell 3.7% after warning that the global memory chip shortage could increase prices for smartphones, laptops and other consumer electronics later this year.
Meanwhile, shares in Genel Energy climbed 4.6% after the Kurdistan-focused oil and gas producer agreed to acquire Capricorn Energy in a $360m all-cash transaction.
