The FTSE 100 closed firmly higher on Thursday, gaining 68.26 points or 0.7% to finish at 10,529.89, boosted by easing inflation concerns.
A sharp fall in oil prices this week helped lift sentiment, reducing fears over aggressive central bank tightening and supporting broader market gains across Europe.
The Dow Jones Industrial Average climbed 0.9% to reach a new all-time high, while the S&P 500 edged up 0.2%, though the Nasdaq Composite slipped 0.4%.
Micron Technology (MU) was among the standout performers in New York, surging 11% after third-quarter results and guidance beat expectations driven by AI’s rampant demand for memory bandwidth.
Chief executive Sanjay Mehrotra told the earnings call that AI’s “insatiable” appetite for memory bandwidth has transformed the industry, with tight supply conditions expected to persist beyond calendar 2027.
Brent crude for August delivery traded at 74.42 dollars a barrel on Thursday, up slightly from 73.45 dollars on Wednesday but still well below levels seen during the height of the Middle East conflict.
David Morrison, senior analyst at Trade Nation, said: “It has proved to be a great relief that crude oil has fallen so rapidly so far this week.”
Morrison added: “This helped to ease concerns over inflation and has thereby reduced expectations of aggressive central bank tightening.”
In European equity markets, the CAC 40 in Paris rose 0.6% while the DAX 40 in Frankfurt advanced a stronger 1.0%, with Bayer among the biggest drivers of the German index’s gains.
Bayer soared 19% after the US Supreme Court overturned a lower court ruling in a 7-2 decision, sending back to a Missouri state court a 1.25 million dollar jury award related to claims that the Monsanto weedkiller Roundup causes cancer.
JPMorgan analyst Richard Vosser said the ruling covers around 80% of filed glyphosate cases and would prevent future claims being filed on this basis.
“Overall, this represents a significant step towards containment of the glyphosate litigation and hence we expect the shares to outperform by 15-20% today,” Mr Vosser added.
Back in London, 3i Group soared 11% after encouraging sales figures from its key investment Action, the Dutch discount store chain that represents 75% of its net asset value.
Chief executive Simon Borrows said like-for-like sales growth so far in 2026 has been 3.3% at Action, with analysts at Citigroup noting this implied on-year sales growth of 6% in the last six weeks.
Barratt Redrow climbed 4.6% after major shareholder Phoenix Asset Management Partners, which first invested in the housebuilder in 1998, called on the company to materially increase its share buybacks.
EasyJet rose 6.6% on the FTSE 250 after saying it is willing to allow potential suitor Castlelake access to limited commercial information in order to produce a proposal better reflecting the airline’s value.
The Luton-based airline had rejected a fourth bid from Minneapolis-based asset manager Castlelake worth 650 pence per share, valuing the carrier at £4.93 billion, but AJ Bell investment director Dan Coatsworth said the latest move signals a shift in tone.
“EasyJet has changed its tune regarding a takeover,” Mr Coatsworth said.
ITV shares rose 3.1% after Reuters reported that Comcast-owned Sky has agreed on terms to buy ITV’s broadcast and streaming unit, with ITV acquiring Love Productions as part of the deal.
US inflation data showed the Federal Reserve’s preferred measure, the personal consumption expenditures prices index, jumped 4.1% from a year ago in May, hitting a fresh three-year high and up from 3.8% in April.