FTSE 100 set to end July higher on upbeat bank earnings

The blue-chip FTSE 100 gained 0.5% and the domestically focussed midcap FTSE 250 added 0.7%. NatWest rose 8.0% after the bank raised its full-year forecast and made a bumper payout to shareholders, while emerging markets-focussed Standard Chartered also climbed on an upbeat outlook, up 3.8%.

London's FTSE 100 rose on Friday and was on course to post its strongest monthly performance this year, as strong forecasts from lenders NatWest and Standard Chartered outweighed economic worries. The blue-chip FTSE 100 gained 0.5% and the domestically focussed midcap FTSE 250 added 0.7%.

NatWest rose 8.0% after the bank raised its full-year forecast and made a bumper payout to shareholders, while emerging markets-focussed Standard Chartered also climbed on an upbeat outlook, up 3.8%. BA-owner IAG gained 1.0% as it returned to profit for the first time since the outbreak of the COVID-19 pandemic in the April-June period, led by demand for flights in Spain and to Latin America.

Boosting the midcap index, Aston Martin gained 3.1% even as the luxury carmaker reported a bigger loss for the first half of the year. Jupiter Fund Management slid 5.8% as the asset manager reported a fall in its half-yearly profit, hit by rising outflows as key global markets buckle under geopolitical tensions and inflationary concerns.