UK’s FTSE 100 posts best week since May; Europe markets close higher as Fed rate cut hopes mount

European stock markets closed higher on Friday, as investors continued to assess the full scope of the European Union’s trade deal with America and hopes rose for a U.S. interest rate cut in September.

The pan-European Stoxx 600 provisionally closed 0.47% higher, with top sectors including mining, autos and travel.

London’s FTSE 100 closed at a record high for the fourth session in a row, adding another 0.13% on Friday to clinch its best weekly performance since May. U.K. stocks have found support this week from gains in mining, retail and defensive stocks, along with Purchasing Managers’ Index data on Thursday showing the strongest business activity for a year.

U.S. markets were also buoyant on Friday after Federal Reserve Chair Jerome Powell suggested interest rate cuts could lie ahead, during a closely-watched speech at the central bank’s symposium in Jackson Hole.