(Sharecast News) - London stocks managed a positive finish on Friday, as investors mulled better-than-expected UK GDP data, with deal news also lending a hand as Pearson shot higher.
The FTSE 100 ended the session up 0.8% at 7,155.64, and the FTSE 250 was 1.26% firmer at 20,206.61.
Sterling was in a mixed state, last trading 0.22% weaker against the dollar at $1.3057, while it strengthened 0.3% on the euro to change hands at €1.1946.
"It's a strange world where markets rally on comments from the Russian president, but that's what happened during the session today," said IG chief market analyst Chris Beauchamp.
"Putin's hints that negotiations might be showing some progress was enough to engender a rally across markets, although some of the optimism has been trimmed.
"There is as yet no sign of any real deal emerging and Russia's previous aims still appear to be in place, so this rally might go the way of so many others of late, with markets still unable to find the foundations for a sustainable bounce."
In the latest emerging from Russia's unprovoked invasion of Ukraine, Moscow implemented an export ban covering more than 200 goods, arguing it was needed to "maintain stability on the Russian market".
Sales of energy and materials - its largest hard currency earners - were spared, however, with the ban on the list of goods set to to remain in place until the end of 2022.
A waiver was being contemplated for member countries of the Eurasian Economic Union, which aside from Russia include Armenia, Belarus, Kazakhstan, Kyrgyzstan.
Helping sentiment were reports of "certain positive shifts" in talks between Moscow and Kyiv, according to Vladimir Putin.
In remarks made to Belarusian president Alexander Lukashenko, the Russian leader said: "There are certain positive shifts, negotiators on our side tell me."
Although he did not provide further details, Putin reportedly added that negotiations were being carried out "practically on a daily basis".
UK prime minister Boris Johnson, meanwhile, said that the war would only stop when Putin accepted that he had made "a disastrous miscalculation" and pulled his country's military back.
"Vladimir Putin has himself made it very difficult to find an off-ramp, and he has, I think, driven his tank, so to speak, down a cul de sac from which it will be very hard to extricate himself - but he must."
In sanctions news, potential buyers of Chelsea Football Club were told earlier that they can approach the government with proposals, after its operations were essentially put on ice by the sanctioning of oligarch owner Roman Abramovich.
Westminster froze Abramovich's assets on Thursday, meaning the club is not able to sell any more tickets, participate in player transfer deals, or run its merchandising operation.
A 'special licence' announced by Culture Secretary Nadine Dorries means the club will be able to participate in matches, however.
On Friday, digital and technology minister Chris Philp said while Abramovich was not able to sell the club while sanctioned, potential buyers could approach the government with their proposals, so long as it would not benefit the oligarch.
"As the licence conditions are written today, the sale would not be allowed," he said to Sky News.
"However, if a buyer emerged it would be open to that buyer or to that football club to approach the government and ask for the conditions to be varied in a way that allows that sale to take place."
On the economic front, the UK economy bounced back strongly in January after taking a hit from the Omicron variant and 'plan B' restrictions, but the outlook was less upbeat.
According to data released on Friday by the Office for National Statistics, GDP grew 0.8% after contracting by 0.2% in December, coming in comfortably ahead of expectations of 0.1% growth.
That left GDP 0.8% above pre-pandemic February 2020 levels.
"All sectors grew in January with some industries that were hit particularly hard in December now performing well, including wholesaling, retailing, restaurants and takeaways," said Darren Morgan, ONS director of economic statistics.
"Computer programming and film and television production also had a good start to the year.
"While supply chain issues persisted in certain sectors, output in both construction and manufacturing grew for the third month running."
Across the pond, consumer confidence fell unexpectedly in the US in early March, amid concerns around inflation and the war in Ukraine.
The University of Michigan's gauge of consumer confidence slipped from a reading of 62.8 at the end of February to 59.7.
Consensus had been for an unchanged reading.
"The persistent strength in demand was a critical factor that shaped the last inflationary age from 1965 to 1982, with stagflation peaking only near its end," said the survey's director Richard Curtin.
"Current expectations are consistent with heightened pressures on wages to meet the continued growth in demand."
In equity markets, Pearson shares surged 18.01% after US asset manager Apollo Global Management confirmed it was in the preliminary stages of evaluating a possible cash offer for the educational publisher.
Online grocer and warehouse technology developer Ocado rose 1.48% after the International Trade Commission rejected patent infringement claims made against the company by Norwegian warehouse robot maker AutoStore.
Berkeley Group gained 1.33% after the housebuilder said it was on track to meet full-year earnings guidance as it continued to trade "robustly" since 1 November.
Elsewhere, Cineworld Group powered 7.14% higher ahead of its full-year results next week.
Russ Mould, investment director at AJ Bell, said that while revenue was forecast to have more-than-doubled, it would not have been enough to stop the business from making a loss, with the company only forecast to return to profit in 2023.
"2021 was another year disrupted by Covid restrictions, but the latest Spiderman film proved to be a big hit at the box office and should have given cinema operators a boost both in terms of earnings and public sentiment towards going to the big screen," Mould noted.
"The market will be very interested to know how Cineworld's trading has been so far in 2022. We've had two years of getting used to watching films on streaming platforms - it could be hard to wean people off this habit."
Anglo-Russian precious metals miner Polymetal International jumped 12.07%, having lost ground recently amid worries about the impact of sanctions on Russia.
Travel-related shares also rose after recent losses, with BA and Iberia owner IAG ascending 1.05%, InterContinental Hotels up 3.06%, and Premier Inn owner Whitbread rising 2.78%.
On the downside, precious metals miner Fresnillo lost 4.7% by the close as gold prices fell back, with sector peers also in the red, as Hochschild Mining was down 6.34% and Centamin 1.99% weaker.
"Gold has fallen more than 1% on the day and fallen further from the $2,000 level it briefly traded above earlier in the week," said Oanda analyst Craig Erlam.
"Putin's comments naturally contributed to the decline in the yellow metal which is now trading a little off the session lows. Improved risk appetite and lower commodity prices are obviously negative for gold."
Elsewhere, Russian steelmaker Evraz said 10 members of its board had quit, following the UK sanction of its largest shareholder Roman Abramovich and the suspension of its shares.
Market Movers
FTSE 100 (UKX) 7,155.64 0.80%
FTSE 250 (MCX) 20,206.61 1.26%
techMARK (TASX) 4,205.46 1.29%
FTSE 100 - Risers
Pearson (PSON) 766.60p 18.01%
Polymetal International (POLY) 169.50p 12.07%
Melrose Industries (MRO) 122.00p 7.30%
Flutter Entertainment (CDI) (FLTR) 8,950.00p 4.78%
Entain (ENT) 1,528.00p 4.30%
CRH (CDI) (CRH) 3,154.00p 3.94%
Admiral Group (ADM) 2,568.00p 3.51%
Ashtead Group (AHT) 4,891.00p 3.14%
Ferguson (FERG) 11,025.00p 3.09%
InterContinental Hotels Group (IHG) 4,949.00p 3.06%
FTSE 100 - Fallers
Fresnillo (FRES) 730.20p -4.70%
United Utilities Group (UU.) 1,052.50p -1.91%
Severn Trent (SVT) 2,825.00p -1.91%
National Grid (NG.) 1,113.40p -1.76%
SSE (SSE) 1,648.00p -1.44%
Reckitt Benckiser Group (RKT) 5,675.00p -1.06%
British American Tobacco (BATS) 3,068.00p -1.03%
Associated British Foods (ABF) 1,703.00p -0.96%
Prudential (PRU) 1,068.00p -0.88%
BP (BP.) 360.20p -0.85%
FTSE 250 - Risers
PureTech Health (PRTC) 202.50p 7.71%
Cineworld Group (CINE) 34.73p 7.14%
Capita (CPI) 21.72p 6.94%
Wizz Air Holdings (WIZZ) 2,879.00p 6.12%
Aston Martin Lagonda Global Holdings (AML) 858.40p 5.33%
Petershill Partners (PHLL) 225.00p 5.07%
National Express Group (NEX) 250.80p 5.03%
Oxford Instruments (OXIG) 2,015.00p 4.95%
Discoverie Group (DSCV) 778.00p 4.70%
Greggs (GRG) 2,336.00p 4.66%
FTSE 250 - Fallers
Hochschild Mining (HOC) 130.00p -6.34%
Energean (ENOG) 994.00p -3.50%
Moonpig Group (MOON) 209.40p -2.88%
Bridgepoint Group (Reg S) (BPT) 274.00p -2.85%
Convatec Group (CTEC) 176.30p -2.52%
Capricorn Energy (CNE) 191.10p -2.35%
Drax Group (DRX) 704.50p -2.22%
Centamin (DI) (CEY) 103.35p -1.99%
Darktrace (DARK) 446.20p -1.89%
Domino's Pizza Group (DOM) 365.00p -1.67%