FTSE 100 Consolidating Higher as Week Closes on Positive Note

The FTSE 100 ended the trading week in the green, registering a 0.77% increase on the day, for a 0.74% rise on the week. This upward movement was largely propelled by strong performances within the travel and leisure sectors, coupled with individual gains in several leading companies.

Travel and leisure stocks led the charge, buoyed by positive investor sentiment. InterContinental Hotels Group spearheaded the sector's advance with a notable 3.99% surge, spurred by a double upgrade from JPMorgan. Whitbread and JD Wetherspoon also enjoyed substantial gains, exceeding 1.9%, further contributing to the sector's overall strength. The oil and gas sector saw modest gains, aligning with the upward trajectory of oil prices, with Shell making a positive contribution to the index (+1.28%).

Among the top individual performers, The Weir Group PLC saw its shares climb 3.11% to GBp2,720. This increase was attributed to positive sentiment pervading the industrials sector, which experienced a broad uptick due to favorable market conditions.

Hikma Pharmaceuticals PLC also posted a strong performance, with its stock rising by 3.02% to GBp1,640. The pharmaceutical firm demonstrated resilience despite the announcement of new U.S. tariffs on branded drugs, a feat attributed to its diversified portfolio and strategic market positioning. Kingfisher plc shares increased by 2.87% to GBp301.20, underpinned by a recent profit outlook upgrade that signaled robust consumer demand. NatWest Group plc advanced 2.81% to GBp519.40, as the banking sector rebounded from previous declines.

THG Plc experienced a 3.46% increase to GBp36.36, fueled by investor confidence in its growth prospects and strategic initiatives.

On the other hand, Diageo shares fell by 0.88% to GBp1,750.50, influenced by sector-wide challenges and potential impacts from the new U.S. tariffs. Unilever PLC saw its stock decrease by 0.91% to GBp4,408.58, facing headwinds from inflation concerns and potential tariff implications. Rio Tinto Group shares decreased by 2.06% to GBp4,814.50.

The market's positive momentum was tempered by the announcement of new U.S. tariffs by President Donald Trump. These tariffs, including a 100% duty on imported branded drugs and a 25% duty on heavy-duty trucks, are slated to take effect on October 1. While these measures introduced potential challenges, the FTSE 100 demonstrated resilience, with markets focusing on sectors less directly affected by the tariffs.

The Footsie has been consolidating up above 9,200 for the past couple of months, with the YTD gain of 12.41% largely in line with the S&P 500 (+12.81%). With the end of Q3 fast approaching, and some potential rebalancing ahead of the final quarter, there could be some moves to watch in the final two trading sessions of the period next week.