(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* Miners rise as metal prices gain ground
* Deliveroo down on JPMorgan downgrade
* Banks, retailers among top weekly performers
* FTSE 100 up 0.3%, FTSE 250 adds 0.6%
May 27 (Reuters) - The FTSE 100 inched higher on Friday,
recording its best weekly showing since mid-March, although oil
and gas stocks came under renewed pressure after the UK
government's windfall tax plan this week.
The FTSE 100 rose 0.3%, with most European markets
ending the week higher, taking heart from a Wall Street rally
after the Federal Reserve minutes suggested it could pause its
rapid rate hikes later this year.
Banks gained 1.1%, while UK-listed global
miners such as Glencore, Rio Tinto and
Antofagasta rose about 1.5% each as copper and iron ore
prices were boosted by a weaker dollar.
However, oil majors such as BP and Shell
slipped about 2% after Britain announced a 25% windfall tax on
oil and gas producers' profits on Thursday.
Power generators such as SSE, Centrica and
Drax dropped between 1.6% and 4.2%, while Harbour Energy
, the biggest UK North Sea oil and gas producer, dropped
10.8% and EnQuest fell 10.4%.
"The big shakedown will be how investors in the UK's oil and
gas majors like BP and Shell will feel about windfall taxes,"
said Sophie Lund-Yates, lead equity analyst at Hargreaves
"While not a long-term problem for profits, the
incentivisation to invest their profits could see dividends
The domestically oriented FTSE 250 midcap index
gained 0.6%, with transport group FirstGroup Plc
extending gains for a second day after attracting buyout
interest from an investment firm.
Both the FTSE 100 and FTSE 250 indexes posted their biggest
weekly gains in over two months, with banks and retailers
providing the biggest boost.
Retailers have gained this week after the government's new
15 billion pound ($19 billion) package of support for households
spurred hopes of more spending.
Food delivery company Deliveroo slipped 1.4% after
JPMorgan downgraded the stock to "neutral".
(Reporting by Sruthi Shankar and Amal S in Bengaluru; Editing
by Subhranshu Sahu and Jon Boyle)