FTSE 100 Extends Recent Gains, Up Nearly 1%

(RTTNews) - The UK stock market's FTSE 100 climbed higher on Friday, extending gains to a third straight session, amid rising optimism about Iran and the U.S. reaching a peace deal. Sharply lower oil prices helped as well in lifting the sentiment.

Data showing a contraction in UK's gross domestic product growth did not any significantly hurt the mood.

Middle East tensions eased following U.S. President Donald Trump calling off his planned attacks on Iran.

The U.S. President said a "great settlement" to end the conflict with Iran has been reached, and that a signing ceremony could take place in Europe as early as this weekend, although Tehran said no final deal has been approved and that disputes over frozen funds and Strait of Hormuz security remain unresolved.

Bank and mining stocks moved up sharply, while energy stocks were weak.

The FTSE 100, which advanced to 10,468.29 earlier, was up 97.69 points or 0.95% at 10,401.57 about half an hour before noon.

Miners Antofagasta and Anglo American Plc gained 5.2% and 4.9%, respectively. Fresnillo gained 4.5%, Endeavour Mining moved up 2.85%, Rio Tinto advanced 2% and Glencore gained about 0.5%.

Barclays gained 5%, Natwest Group and Standard Chartered both surged 4% and HSBC Holdings climbed 3.7%, while Lloyds Banking Group moved up 3.5%

IAG, Lion Finance and Rolls-Royce Holdings climbed 6.8%, 5.2% and 5%, respectively. Persimmon, Scottish Mortgage, Berkeley Group Holdings, Burberry Group, Barratt Redrow and Polar Capital Technology Trust all gained over 4%.

Whitbread, Games Workshoop, Melrose Industries, Metlen Energy & Metals, 3i Group, Intercontinental Hotels Group, St. James's Place, Marks & Spencer, Segro, Halma and ICG also moved up sharply.

Among the losers, energy stocks BP and Shell tumbled 4.9% and 3.5%, respectively on weak oil prices.

Centrica, BAE Systems, The Sage Group, SSE, Bunzl and LSEG slid 0.6%-1.7%.

Data from the Office for National Statistics showed the UK economy contracted in April due to weakness in the services sector. Real gross domestic product posted a contraction of 0.1% in April, in contrast to a 0.3% expansion in March. This was the first monthly fall since August 2025 and also came in line with expectations.

The decline was driven by a 0.2% fall in services output. This was offset by a 0.1% increase in construction output.

At the same time, industrial production showed no growth after falling 0.2% in March. Within in industrial output, manufacturing output climbed 0.4% but came in slower than the 1.2% rise seen in March.

Another report from the ONS showed that the visible trade deficit narrowed in April as exports increased amid falling imports. The visible trade gap fell to GBP 26.05 billion in April from GBP 27.22 billion in March.

Exports logged faster monthly growth of 2.4%, while imports dropped 0.7%.

The total trade balance that combines goods and services trade, registered a deficit of GBP 8.4 billion compared to a shortfall of GBP 9.7 billion in March.