12.06.202616:07:47UTC+00FTSE 100 Rises for 3rd Session

The FTSE 100 climbed 1.5% on Friday, marking a third consecutive session of gains, buoyed by optimism that the US and Iran may be moving closer to resolving their conflict, as well as by falling oil prices. Most index constituents advanced, with banks and miners leading the rally. HSBC Holdings rose 4%, Lloyds Banking Group gained 4.1% and Barclays added nearly 5%. NatWest and Standard Chartered were also stronger, up 3.6% and 4%, respectively. Mining stocks posted robust gains, with Rio Tinto up nearly 3%, while Anglo American, Antofagasta and Fresnillo each advanced more than 5%.

Energy majors, however, were a drag on the index as crude prices declined, with Shell slipping 2% and BP falling 2.2%. On the macroeconomic front, new data showed that the UK economy contracted for the first time in eight months, underscoring the impact of the Iran conflict on activity. GDP fell 0.1% in April following growth in the previous two months, in line with economists’ expectations.