London's FTSE 100 rallied 0.48% on Thursday's close ahead of Friday's release of key UK economic data, including April gross domestic product figures that could offer clues on the economy's strength and the Bank of England's policy path.
"We expect the Monetary Policy Committee to hold Bank Rate at 3.75% at next week's meeting on June 18," Oxford Economics UK said. "The vote split will probably be slightly narrower than in April's decision, with Megan Greene likely to join Huw Pill in voting for a hike due to shared concerns that second-round effects could prove larger than expected."
Elsewhere, the European Central Bank raised its three key interest rates by 25 basis points at its June meeting, citing inflationary pressures linked to the Middle East conflict. The move marked the ECB's first rate increase since 2023.
On the economic front, the Royal Institution of Chartered Surveyors house price balance stood at -35% in May 2026, unchanged from the revised April 2026 reading. The figure missed the consensus estimate of -31% and remained the weakest since November 2023.
"The May RICS survey is best described as a market trying to stop the bleeding rather than one that is healing," RBC Capital Markets said. "The headline numbers remain deeply negative across demand, supply and prices, but the direction of travel is at least no longer uniformly downward. For the first time since January, new buyer enquiries and agreed sales stopped falling further into negative territory, both holding steady month- on-month at net balances of -34% and -37% respectively."
In corporate news, Intertek Group (ITRK.L) climbed 1.65% after Swedish private equity firm EQT secured an extension of the deadline to make a firm offer for the British assurance, testing, and certification company to June 18.
Halma (HLMA.L) fell 15.38%, making it the index's worst performer, despite reporting higher fiscal 2026 attributable profit and revenue year over year. The life-saving technology group also expects low double-digit organic revenue growth in constant currency for fiscal 2027.
Geopolitical risks also remained in focus as the US and Iran traded fresh attacks for a second day, raising concerns over regional stability and potential disruptions to global energy supplies despite ongoing diplomatic efforts.