FTSE 100 jumps Friday but remains on track for weekly loss

The U.K.’s main equity gauge climbed Friday but stayed on track for a weekly drop, getting a lift from tech-sector cheer and Mondi PLC’s and Royal Bank of Scotland Group PLC’s encouraging updates.

Worries over Brexit and global trade tensions remained part of the backdrop.

How markets are performing

The FTSE 100 UKX, +0.77% rose 0.9% to 7,646.71, erasing most of Thursday’s fall of 1%.

The British blue-chip gauge is still down for the week, off by 0.7%, and it’s showing a 0.5% decline for 2018.

The pound GBPUSD, +0.0768% was buying $1.3023, up slightly from $1.3014 late Thursday in New York.

What’s moving markets

There was pressure on equities around the world in the prior session, after U.S. President Donald Trump’s administration late Wednesday confirmed that it’s considering more than doubling to 25% its proposed tariffs on $200 billion in Chinese goods.

But the main American stock indexes SPX, +0.49% shook off trade-related fears and mostly closed higher Thursday on the back of tech titan Apple Inc.’s AAPL, +2.92% rally to a market cap above $1 trillion, and other major stock markets appeared to be following suit Friday.

On the Brexit front, Bank of England Gov. Mark Carney warned Friday that there is an “uncomfortably high” chance of the U.K. crashing out of the European Union without a transition agreement, which could rattle the economy.

Traders may react to U.K. Prime Minister Theresa May’s planned meeting with French President Emmanuel Macron in France on Friday. French officials reportedly have said the rendezvous isn’t a negotiation, and it doesn’t take the place of Brexit talks led by the European Union’s chief negotiator, Michel Barnier.

A disappointing July figure for U.K. services also was getting some attention Friday. Markit’s services purchasing-manager index came in at 53.5, below expectations for a reading of 54.7, according to FactSet data.

In addition, investors are bracing for a U.S. monthly jobs report, due to hit at 1:30 p.m. London time, or 8:30 a.m. Eastern time. Economists polled by MarketWatch predict the world’s largest economy added 195,000 jobs in July.

What are strategists saying?

• “A rising Apple share price helped lift all boats,” said Michael Hewson, chief market analyst at CMC Markets UK, in a note Friday, referring to the U.S. stock market’s rebound.

“This Apple-inspired rebound is likely to offer a respite for markets in Europe this morning ahead of today’s U.S. payrolls report,” Hewson added.

Stocks in focus

Shares in Mondi MNDI, +6.42% soared 7% for the FTSE 100’s biggest gain after the packaging and paper company reported a higher first-half pretax profit and raised its dividend.

Shares in RBS RBS, +3.16% tacked on 4% as the lender said it will pay its first dividend in 10 years while posting its results.

International Consolidated Airlines Group SA’s stock IAG, -2.57% fell 3% for the FTSE’s largest drop after the British Airways parent said second-quarter profit rose, but passenger unit revenue for the quarter declined.

IAG CEO Willie Walsh also said the company would sell its small stake in Norwegian Air Shuttle ASA NAS, -0.47% if its efforts to acquire the budget carrier fail. Norwegian Air shares were up 0.6%.

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