Weaker pound, miners push FTSE 100 higher; travel stocks jump

The domestically focussed mid-cap index was up 0.4%. The FTSE 100, which has gained nearly 9.5% so far this year on availability of cheap funds, is set to drop for the second straight week as a jump in coronavirus infections raised concerns about the pace of economic recovery.

London's FTSE 100 gained on Friday as a weaker pound helped support export-focused stocks, but was set to end the week lower on signs that the pace of economic recovery could be slower than expected. The blue-chip FTSE 100 rose 0.5%, powered by Glencore, Rio Tinto, Unilever and GlaxoSmithKline.

Britain's economy grew by a slower-than-expected 0.8% in May from April, official data showed. A Reuters poll of economists had pointed to month-on-month growth of 1.5% in gross domestic product. "With the government's overwhelming desire to get back to normal and completely relax all restrictions in the face of rapidly accelerating virus cases, there is a growing risk that the economy will continue to print lower growth numbers in the months ahead," said Charles Hepworth, investment director at GAM Investments.

Travel stocks gained 0.9% after three straight sessions of declines, as Britain plans to scrap quarantine for fully-vaccinated arrivals in the coming weeks. The domestically focussed mid-cap index was up 0.4%.

The FTSE 100, which has gained nearly 9.5% so far this year on the availability of cheap funds, is set to drop for the second straight week as a jump in coronavirus infections raised concerns about the pace of economic recovery. Among stocks, Vectura Group jumped 12.8% to the top of the mid-cap index after cigarette maker Philip Morris said it would buy the pharmaceutical company in a deal valuing it at 1.05 billion pounds ($1.44 billion).

British jet and auto parts supplier Senior fell 0.7% even after it forecast 2021 performance to be slightly ahead of its previous expectations, encouraged by signs of a recovery in the aerospace division.