The FTSE 100 climbed 1.4% on Friday, reversing earlier losses, but is on track for its worst weekly decline since early 2023 amid escalating global trade tensions. Energy and defense stocks led the rebound, with crude oil futures rising to $88.60/bbl.
- FTSE 100 closed Friday at 7,923.8, up 1.4% on the day but down 3.1% for the week
- Week’s decline marks the worst since February 2023 amid tariff-related market stress
- Crude oil futures (CL=F) ended at $88.60/bbl, a 2.7% weekly gain
- UKOIL index rose 4.5% on the week due to energy sector strength
- BAE Systems gained 5.2% after securing a $1.3 billion UK defense contract
- FTSE 100 volatility index reached 26.8, signaling elevated market uncertainty
The FTSE 100 closed Friday at 7,923.8, marking a 1.4% rebound after dropping as much as 1.9% earlier in the session. Despite the recovery, the index is projected to end the week down 3.1%, its steepest weekly loss since February 2023, when trade-related tariffs disrupted supply chains and triggered a wave of risk aversion across global markets. Energy and defense sectors provided the primary support, with oil-linked equities surging amid rising geopolitical tensions. Crude oil futures (CL=F) settled at $88.60 per barrel, up 2.7% on the week, as supply concerns mounted in the Middle East. UKOIL, a London-traded energy index, rose 4.5% over the week, reflecting heightened volatility in global energy markets. The defense sector saw strong inflows, with companies such as BAE Systems and Rolls-Royce reporting increased contract wins. BAE Systems rose 5.2% on news of a new $1.3 billion defense procurement deal with the UK Ministry of Defence, underscoring growing government spending in response to regional instability. Market participants remain cautious, with volatility in the FTSE 100’s VIX equivalent index rising to 26.8, its highest level since late 2023. Analysts warn that sustained tariff threats and supply chain disruptions could continue to pressure earnings, particularly for export-reliant firms in manufacturing and technology.