Feb 20 (Reuters) - Britain's FTSE indexes gained on Friday and were set to end the week higher, led by defence stocks, while expectations for a March rate cut from the Bank of England and easing AI-
London Stocks Rise on Tariff Ruling and Rate Cut Expectations
By Tharuniyaa Lakshmi
Feb 20 (Reuters) - Britain's stock indexes climbed on Friday, finishing the week higher, after the U.S. Supreme Court struck down President Donald Trump's tariffs, while expectations of a Bank of England rate cut in March and easing concerns over AI disruption also lifted sentiment.
FTSE Index Performance
The blue-chip FTSE 100 closed up 0.5% after hitting a record high in intraday trading at 10,745.76 points. The index also marked its biggest weekly jump since mid-December.
The domestically focused FTSE 250 rose 0.7% and ended the week higher.
The U.S. Supreme Court on Friday struck down Trump’s sweeping tariffs, but Britain said it still expects its privileged trading relationship with the United States to remain in place.
Impact of Geopolitical Tensions
Meanwhile, geopolitical tensions in the oil-rich Middle East and the greater likelihood of defence cooperation within Europe helped defence stocks gain 6.7% this week.
On the earnings front, Aston Martin fell 1.4% after the luxury carmaker warned of a bigger annual loss and said it plans to sell the right to use its name on the Aston Martin F1 Team to bolster its finances after a challenging year.
The broader auto sector lost 1.4% and was among the few sectors in the red.
Corporate Earnings and Sector Movements
Anglo American posted a $3.7 billion loss following another write-down in its diamonds business. However, shares added 1%, tracking higher base and precious metal prices.
Investors were relieved by data earlier this week that showed inflation was steadily nearing the central bank's 2% target. Strong manufacturing activity data and retail sales numbers on Friday, however, pointed to the risk of price pressures flaring up.
Still, traders see a 78% chance that the central bank will cut interest rates by 25 basis points when it meets next month to shore up the labour market.
Market Sentiment and Economic Indicators
Chris Beauchamp, chief market analyst at IG Group, said that the FTSE has become a rare safe haven this year, with cheap valuations and steady momentum pulling investors out of overheated U.S. tech names, while the broader risk-on tone remains in place.
AI-disruption concerns, which had roiled global markets earlier in the month, appeared to temporarily take a back seat.
However, simmering tensions between Iran and the U.S. were in the spotlight after Trump on Thursday warned Iran must make a deal over its nuclear program or "really bad things" will happen.
Key Stock Movements
Among other movers, Diageo rose 3.9% after a report said new CEO Dave Lewis is planning a major shake-up of his executive team.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Vijay Kishore and Sharon Singleton)
