The FTSE 250 hit its highest level in more than two years as the domestically-focused index was boosted by the improving outlook for the UK economy.
London’s mid-cap stock index reached its strongest level since April 2022, rising 0.1 per cent, or 13.98 points, to 21,202.89.
It comes after better-than-expected GDP figures this week showed the UK economy grew by 0.4 per cent in May. That has also lifted the pound to its highest level in a year – $1.2988 against the dollar.
A stronger pound tends to dampen the FTSE 100’s global constituent, weakening the sterling value of its overseas earnings but it still managed to rise 29.57 points, or 0.4 per cent, to 8252.91.
Signs of a slowdown in consumer spending hit shares in some of America’s biggest banks.
Boost: London’s mid-cap stock index reached its strongest level since April 2022, rising 0.1 per cent, or 13.98 points, to 21,202.89
Wells Fargo shares fell 6.4 per cent, JP Morgan, the largest bank in America, was down 0.9 per cent after the funds it set aside to cover potentially bad loans surged by nearly two-thirds to £2.4billion.
And while Citigroup profits rose 10 per cent to £2.5billion, it dipped 2 per cent.
It was a volatile session for some London asset managers. Ashmore, which is focused on emerging markets such as Colombia and India, warned investors had little appetite for risk.
Assets under management fell 5 per cent to £38billion in the fourth quarter as clients withdrew £1.5billion worth of funds. Shares dropped 0.1 per cent, or 0.1p, to 180p.
Ashmore’s mid-cap peer Ninety One said its managed assets increased 3 per cent to £128.6billion, and rose 1.9 per cent, or 3.2p, to 176.5p.
AIM-listed Premier Miton’s assets under management reached £10.6billion in the quarter to June 30, down from £10.7billion at the start of the quarter as investors pulled £139m from funds – but climbed 6.7 per cent, or 4.5p, to 71.5p.
US asset manager Oaktree Capital Management disclosed a 6.3 per cent stake in Indivior, just days after the US pharma firm warned annual revenues and profits will be worse than hoped. Indivior fell 3.4 per cent, or 28.5p, to 814.5p.
Drinks giant Diageo, behind the Guinness, Johnnie Walker and Smirnoff brands, fell 0.3 per cent, or 6.5p, to 2539.5p following a downgrade from Goldman Sachs.
Airline stocks also faced a turbulent session after HSBC cut its rating on the sector and Germany’s Lufthansa issued its second profit warning of the year. British Airways owner IAG shed 2.2 per cent, or 3.5p, to 174p and Wizz Air slid 0.8 per cent, or 18p, to 2170p.
Rio Tinto is reportedly eyeing takeover targets such as Canadian miner Teck Resources, according to Sky News, and edged up 0.2 per cent, or 10p, to 5260p.
Frontier Developments added 1.8 per cent, or 4.5p, to 255p after the video games developer announced the sequel for popular theme park game Planet Coaster 2.
Superdry dropped 3.1 per cent, or 0.1p, to 3.3p as the British retailer prepared to be de-listed on Monday.
System1 Group, which helps companies test and make adverts, added 260 customers in a year, helping revenue soar 28 per cent to £30m with profits of £3.1m. Shares gained 6.6 per cent, or 45p, to 730p.
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