European stocks rebounded on Friday, with the FTSE 100 rising 1.1% and other key indices also showing gains. The rally came despite a weak performance from telecommunications stocks, which faced concerns over competition from satellite-based mobile services. Oil prices dropped slightly after US President Donald Trump ruled out a strike on Iran before the midterm elections, easing some market tensions.
The FTSE 100 ended the week up 0.9%, while the FTSE 250 gained 0.1%. Russ Mould, investment director at AJ Bell, noted that markets have been volatile, shifting between inflation and interest rate concerns to corporate earnings strength. The European Union's interim deal to restrict imports from China boosted carmakers, with BMW, Mercedes-Benz, and Volkswagen all seeing gains.
In the US, the Dow Jones, S&P 500, and Nasdaq Composite were all up 0.5%. Meanwhile, telecommunications stocks suffered sharp declines. SpaceX's acquisition of low-band spectrum heightened fears of competition, leading to falls for Airtel Africa, Vodafone Group, and BT Group. In Europe, Telefonica, Orange, and Deutsche Telekom also declined.
Other notable movers included publishing and software stocks, which rose despite previous fears of AI disruption. Relx, Sage, and Experian all gained. Miners also performed well, with Antofagasta, Fresnillo, and Glencore among the top gainers. On the FTSE 250, Morgan Advanced Materials soared 9.4%, and Ocado Group continued its strong run.