FTSE 100 Rises on Trade Talk Hopes and Earnings

The UK’s leading stock index, the FTSE 100, experienced gains on Friday, propelled by Shell and fueled by optimism surrounding potential de-escalation in trade relations between China and the United States, alongside generally encouraging corporate earnings reports.

By 0955 GMT, the FTSE 100 had increased by 0.8%, putting it on course for its fifteenth consecutive session of gains, marking a record streak. It is also set for its third successive week of positive movement.

Despite recent market volatility linked to US import tariffs, the blue-chip index is positioned only 3.6% below its all-time high close, recorded on March 3, 2025.

Individual Stock Performances

Oil giant Shell saw a 3.4% increase in its value after exceeding analyst forecasts for its first-quarter net profits. The company also confirmed it would continue its share buyback program, despite declining oil prices and reduced refining margins compared to the previous year.

The energy sector index broadly benefited, climbing 2%, with Shell’s strong performance acting as a key driver.

NatWest shares edged up by 1.2% following the bank’s announcement of a better-than-anticipated 36% surge in first-quarter profits, driven by improved margins on deposits and growth in loan balances.

Standard Chartered reported a 10% rise in profits. However, similar to HSBC, it cautioned that higher tariffs could negatively impact credit quality. Shares in Standard Chartered subsequently fell by 0.5%.

US-China Trade Negotiations

Regarding trade developments, China’s Ministry of Commerce communicated that it is “evaluating” an invitation from Washington to engage in discussions concerning US President Donald Trump’s 145% tariffs and emphasized Beijing’s willingness to negotiate.

However, China stated that Washington must demonstrate “sincerity” in these negotiations and be prepared to roll back its unilateral tariffs. The FTSE 250, which is more focused on domestic UK businesses, remained almost unchanged during the day but was progressing toward its fourth consecutive week of gains.

SSP Group’s stock value surged by 6%, making it one of the top performers in the midcap index. This followed a report in the Financial Times indicating that activist investor Irenic Capital Management had acquired a 2% stake in the food outlet operator.

The stock reached its highest level in approximately six weeks. Shares in Ferrexpo, a mining company focused on Ukraine, continued their upward trend for the second consecutive day, increasing by 10%, boosted by the minerals agreement between the US and Ukraine.