Banks, energy stocks push FTSE 100 higher as crisis fears ease

However, the index was on track to post its worst weekly performance in nine months as fears of a global banking crisis enveloped markets, following the collapse of two U.S. lenders, with troubles at Swiss lender Credit Suisse only compounding fears. The fears began to ease after major U.S. banks on Thursday offered a $30 billion lifeline for beleaguered First Republic Bank, while Credit Suisse also received an emergency liquidity line from the Swiss central bank.

UK's FTSE 100 rose nearly 1% on Friday, with bank stocks rallying as support measures eased fears of a global banking meltdown and commodity-linked stocks tracked commodity prices higher.

The blue-chip FTSE 100 rose 0.9%. However, the index was on track to post its worst weekly performance in nine months as fears of a global banking crisis enveloped markets, following the collapse of two U.S. lenders, with troubles at Swiss lender Credit Suisse only compounding fears.

The fears began to ease after major U.S. banks on Thursday offered a $30 billion lifeline for beleaguered First Republic Bank, while Credit Suisse also received an emergency liquidity line from the Swiss central bank. British banks gained 0.2%. Lender Barclays rose 1.2%.

"Increasingly, the message coming out is that these are not the same (U.S. banks) issues that are impacting the UK banks," said Matt Evans, portfolio manager for UK sustainable equities at Ninety One in London. Evans said some of the nervousness that hit stocks recently is easing, resulting in a relief rally on Friday.

Industrial metal miners jumped 3.2% as most base metal prices rallied. Energy stocks also surged 3.1% as majors Shell and BP rose 3.0% and 3.2%, respectively, tracking higher oil prices.

Crude prices firmed after a meeting between Saudi Arabia and Russia calmed markets amid strong China demand expectations. Looking ahead, investor focus would shift to interest rate decisions from the Bank of England and Federal Reserve next week in light of the European Central Bank raising its interest rate by a hefty 50-basis points on Thursday.

The more domestically focussed FTSE 250 midcap index gained 0.4% as Bodycote surged 6.7% after the thermal processing service provider reported higher full-year revenue. Among other gainers, GSK gained 1.5% after Deutsche Bank raised the drugamaker's rating to "buy" from "hold".

UK-listed shares of Flutter Entertainment rose 3.1% after HSBC raised its price target on stock.