FTSE 100 closes higher as pound rallies on weak US jobs data

UK equities ended a positive week with the FTSE 100 up 0.3%, while the mid-cap FTSE 250 surged 3.7% as the pound strengthened against the dollar following a surprise drop in US employment.

By Handelsavisen Newsroom · Automated 7 August 2026, 16:34 UTC · 1 min read

UK equity markets closed on a high note on Friday, with the FTSE 100 gaining 33.20 points, or 0.3%, to finish at 10,901.09.

The broader market showed even stronger momentum, as the FTSE 250 rose 3.7% and the AIM All-Share index climbed 4.0% over the week.

07%, but the broader equity recovery was supported by the fresh wave of optimism surrounding the cooling labor market.

The rally was driven by a strengthening pound against the US dollar, which appreciated following the release of unexpectedly weak US jobs figures.

The labor market data signaled a cooling economy in the United States, prompting investors to reassess the outlook for Federal Reserve policy and boosting the value of sterling relative to the greenback.

The positive sentiment in London mirrored moves in US markets, where the S&P 500 and Nasdaq Composite posted gains after the employment report revealed the US economy had shed jobs last month.

The Dow Jones Industrial Average saw a minor slip of 0.07%, but the broader equity recovery was supported by the fresh wave of optimism surrounding the cooling labor market.