Source: Sharecast
By the end of trading, the FTSE 100 was 1.10% or 83.17 points higher at 7,659.10, with the mid-cap FTSE 250 index up 0.42% or 86.36 points at 20,635.33.
Over the week as a whole, the Footsie shed 42.21 points.
Overseas-focused blue chips were boosted by a fall in the pound on the back of a disappointing start to the third quarter for the services sector.
The IHS Markit purchasing managers' index slipped from a reading of 55.1 for June to 53.5 in July, missing the consensus forecast for a reading of 54.7 by a wide margin. Brexit-related uncertainties, the recent World Cup and drier weather were said to have acted as a drag.
Growth in output and new orders both decelerated for the country's key sector, though input cost growth slowed it remained at elevated levels.
Coincidence or not, it mimicked a retreat in the US ISM's non-manufacturing PMI released later in the day, which fell back from a June reading of 59.1 to 55.7 (consensus: 58.6).
Earlier, stocks across Europe started on the front foot on the back of Apple's ascent, becoming the first US $1.0trn company, which lifted the tech sector and enabled a positive finish on Wall Street on Thursday.
Market analyst Japer Lawler at London Capital Group said this overshadowed escalating trade tensions, after China promised a retaliation if Trump pushed ahead with higher tariffs.
Beijing said that if Washington moved ahead with tariffs on $200bn-worth of its goods then it would reciprocate with tariffs ranging from 5% to 25% on $60bn-worth of American products.
For his part, US National Economic Council director, Barry Kudlow, told Bloomberg TV: "Their economy's weak, their currency is weak, people are leaving the country. Don't underestimate President Trump’s determination to follow through."
Nevertheless, ongoing weakness in the Chinese yuan was reminding investors that a full-blown trade war might soon become a reality, with the US dollar initially gaining 0.46% versus the Chinese currency.
That was until China's central bank was reported by Bloomberg to have raised the reserve requirement for forward trading foreign currency to 20% on Friday, having last September effectively removed the requirement after its biggest two-week surge in at least a decade. But this only saw the yuan perk up slightly, rising 0.2% against the dollar to 6.8325.
As for Friday's all-important US jobs data, the Department of Labor reported a 157,000 person increase in non-farm payrolls for July which, while less than then 193,000 that economists had penciled-in, was offset by upwards revisions to figures for the prior two months.
"The swing in payroll growth from 248K in June to 157K in July looks more like noise than signal, but we can't be absolutely sure, given the clear dip in the ISM non-manufacturing employment index in recent months, following the initial of tariffs," said Ian Shepherdson at Pantheon Macroeconomics.
"Other employment indicators, like JOLTS and the NFIB survey, remain very strong, though, so for now we're happy to stick to the idea that the trend remains 200K-plus."
In corporate news, Royal Bank of Scotland pleased investors with its first dividend in 10 years despite a inconsistent set of first half results. The taxpayer-owned bank reported second-quarter operating profits that halved to £613m compared to the first quarter and the second quarter last year, but this was much better than expected, with City analysts having pencilled in a loss of £340m.
Paper manufacturer Mondi led the FTSE 100 as it reported a 6% rise in interim pre-tax profits of €490m (£436m) due to higher average selling prices and solid demand across its packaging businesses.
The US tech spike gave a boost to Scottish Mortgage Investment Trust, which is predominantly invested in US and Chinese digital stocks, although has no large direct exposure to Apple.
Product testing company Intertek said it was buying US-based software provider Alchemy for $480m (£368.8m) in cash. The Texas-based firm was said to be an "industry leader in people assurance solutions for the food industry".
Cobham climbedeven though sales slumped over the first half of the year as it ran into trouble with Boeing on the KC-46 tanker programme. But following divestments during the period, management argued that the resulting company was now more focused and the balance sheet stronger.
Plastics supplier Essentra was boosted as said returned to profit growth, unveiling a 7% rise in half-year pre-tax profits to £21m as revenue fell to £513.1m from £522.6m, but was unchanged on a like-for-like basis.
IAG flew lower as it issued its results for the six months ended 30 June on Friday, reporting second-quarter operating profit of €835m before exceptional items, up from a restated €790m a year ago but below consensus forecasts. The FTSE 100 owner of British Airways said it was still interested in low-cost rival Norwegian Air.
William Hill was a big faller reported a £819.6m loss before tax for the 26 weeks to 27 June, down from a £93.1m profit a year earlier. This included £882.8m non-cash impairment taken as a result of the government's triennial review into FOBTs and also £29.9m of exceptional costs relating to restructuring, which is expected to see further costs of around £15m in the second half.
AstraZeneca and Merck said the European Medicines Agency (EMA) has granted orphan designation to selumetinib, a MEK 1/2 inhibitor, for the treatment of neurofibromatosis type 1 (NF1) an incurable genetic condition that affects one in 3,000 newborns worldwide.
Market Movers
FTSE 100 (UKX) 7,659.10 1.10%
FTSE 250 (MCX) 20,635.33 0.42%
techMARK (TASX) 3,588.57 1.05%
FTSE 100 - Risers
Mondi (MNDI) 2,236.00p 7.92%
Rolls-Royce Holdings (RR.) 1,094.00p 3.40%
Royal Bank of Scotland Group (RBS) 257.80p 3.08%
SEGRO (SGRO) 670.00p 2.67%
United Utilities Group (UU.) 722.40p 2.64%
Scottish Mortgage Inv Trust (SMT) 545.00p 2.54%
Just Eat (JE.) 806.40p 2.44%
Severn Trent (SVT) 1,929.00p 2.39%
Micro Focus International (MCRO) 1,230.50p 2.37%
Next (NXT) 5,662.00p 2.31%
FTSE 100 - Fallers
International Consolidated Airlines Group SA (CDI) (IAG) 669.80p -2.22%
BAE Systems (BA.) 625.00p -1.36%
Sky (SKY) 1,513.00p -0.43%
GVC Holdings (GVC) 1,132.00p -0.26%
Lloyds Banking Group (LLOY) 62.61p -0.26%
Ocado Group (OCDO) 1,088.50p -0.23%
London Stock Exchange Group (LSE) 4,489.00p -0.18%
RSA Insurance Group (RSA) 626.80p -0.16%
Morrison (Wm) Supermarkets (MRW) 260.80p -0.11%
Coca-Cola HBC AG (CDI) (CCH) 2,739.00p -0.04%
FTSE 250 - Risers
Essentra (ESNT) 507.00p 5.27%
Kaz Minerals (KAZ) 609.60p 3.71%
Mediclinic International (MDC) 514.20p 3.67%
Premier Oil (PMO) 122.50p 3.29%
CLS Holdings (CLI) 225.00p 3.21%
Cobham (COB) 128.50p 3.17%
Coats Group (COA) 82.20p 2.88%
Galliford Try (GFRD) 937.50p 2.85%
Clarkson (CKN) 2,545.00p 2.83%
Hochschild Mining (HOC) 173.60p 2.72%
FTSE 250 - Fallers
William Hill (WMH) 268.60p -8.11%
Travis Perkins (TPK) 1,102.00p -2.74%
Hikma Pharmaceuticals (HIK) 1,630.50p -1.78%
IG Group Holdings (IGG) 918.00p -1.76%
Metro Bank (MTRO) 2,968.00p -1.72%
Millennium & Copthorne Hotels (MLC) 519.00p -1.72%
Convatec Group (CTEC) 208.60p -1.70%
IntegraFin Holding (IHP) 375.00p -1.57%
TI Fluid Systems (TIFS) 254.00p -1.55%
IP Group (IPO) 122.20p -1.45%
