he FTSE 100 inched higher on Friday to remain around two-month highs amid a quiet end to the week’s trading.
Across Europe, the trading sentiment was slightly more positive with the top German index climbing to a new high due to slowing inflation, despite concerns over a stagnating economy.
The FTSE 100 moved 0.02%, or 1.51 points, higher to finish at 7,694.27.
Germany’s Dax index was 0.39% higher for the day while the Cac 40 closed up 0.15%.
Chris Beauchamp, chief market analyst at IG, said: “Worries about a stagnation in Germany took some of the shine off European markets, but with the Dax having clocked up a new intraday high yesterday it looks like indices this side of the Atlantic have bestirred themselves again.
“After a busy week, markets might be hoping for a breathing space, but they will be disappointed – more central banks, plus US job numbers and another wave of earnings will mean that any further gains in stocks are likely to come with a hefty dose of volatility too.”
Stateside, the US markets were higher on opening after the latest core PCE (Personal Consumption Expenditures index) inflation numbers showed that price pressures subsided further in June.
Meanwhile, sterling gained against the dollar as currency traders continued to predict another interest rate hike from the Bank of England and potential further increases.
The pound was up 0.56% to 1.286 US dollars and was 0.02% higher at 1.165 euros at market close in London.
In company news, NatWest gave investors some positive news when it revealed its latest trading figures on Friday following a torrid week for the banking giant, which saw Dame Alison Rose step down as chief executive following a row over the cancellation of Nigel Farage’s account with Coutts.
Under-pressure chairman Sir Howard Davies said he planned to stay in his role to give the business stability as it posted higher than expected profits.
Shares increased by 5.6p to 245.5p after the firm said operating pre-tax profit leaped to £3.6 billion in the six months to the end of June, up from £2.6 billion the same time last year.
Elsewhere, British Airways parent firm International Consolidated Airlines Group (IAG) helped to support the FTSE after it also made made gains.
Shares lifted by 10.2p to 165.15p at the close after the airline business made a record operating profit of 1.3 billion euros (£1.1 billion) between January and June after fares increased by almost a tenth.
Market research and polling firm YouGov slid in value after it revealed the departure of co-founder Stephan Shakespeare as its chief executive.
YouGov shares closed 110p lower at 970p as a result.
The price of oil edged back slightly on Friday but it failed to stop a fifth consecutive week of gains as easing inflation fears helped support hopes regarding demand.
A barrel of Brent crude oil fell by 0.11% to 84.15 US dollars at the time markets were closing in London.
The biggest risers in the FTSE 100 were IAG, up 10.2p to 165.15p, Standard Chartered, up 28.2p at 737.6p, AstraZeneca, up 358p at 11,058p, Airtel Africa, up 3.6p at 117.2p, and Intertek, up 115p at 4,386p.
The biggest fallers in the FTSE 100 were Admiral, down 116p at 2,158p, St James’s Place, down 47.8p at 945.6p, Beazley, down 19.5p at 553.5p, Segro, down 18.2p at 754.2p, and Aviva, down 8.7p at 390.7p.