(Reuters) - British blue-chip stocks rebounded on Friday as investors took hope from signs of easing trade tensions between the United States and China, although a Ryanair alert knocked airline stocks.
The FTSE 100 <.FTSE> advanced 1.1 percent after trading lower most of the week as sterling rose amid a tumultuous week in UK politics. The mid-caps <.FTMC> were 0.7 percent higher at 0944 GMT after reaching their highest in a month and a half.
The blue chips were still headed for their first weekly drop in a month, while sterling was on track for its best week against the euro since September 2017.
A Wall Street Journal report that Washington was considering lifting some or all of the tariffs imposed on Chinese imports buoyed stocks globally.
Oil majors BP
Financial services recovered after from a sell-off on Thursday caused by a profit warning from Societe Generale
The prospects for Brexit remained unclear at the end of a chaotic week. Prime Minister Theresa May and opposition Labour leader Jeremy Corbyn deadlocked over how to leave the European Union. Brexit campaigner Nigel Farage said the UK is likely to delay Brexit and another referendum is possible.
Housebuilders, some of the stocks most affected by Brexit outcomes, were among the biggest winners on FTSE 100.
Corporate news drove some moves. Shares in Ryanair
"We believe this lower fare environment will continue to shake out more loss making competitors, with WOW, Flybe, and reportedly Germania for example, all currently for sale," CEO Michael O'Leary said.
Budget rival easyJet
Mid-cap security software company Sophos
GRAPHIC: Ryanair vs European airlines - https://tmsnrt.rs/2HrKGeK
(Reporting by Muvija M and Shashwat Awasthi in Bengaluru; editing by Josephine Mason, Larry King)