May 5 (Reuters) - UK's FTSE 100 rose on Friday as an uptick in crude prices supported energy stocks and investors digested interest rate hikes from major central banks, while British Airways-owner IAG topped the index on strong quarterly results.
The blue-chip index (.FTSE) and the mid-cap FTSE 250 index (.FTMC) rose 0.3% each, as of 0830 GMT.
Oil and gas sector (.FTNMX601010) jumped 1.7%, with firm crude prices and a weaker dollar supporting gains.
The U.S. Federal Reserve and the European Central Bank hiked interest rates by 25 basis points (bps) earlier this week. Though the ECB signalled more hikes were to come, the Fed indicated a potential pause in its monetary tightening.
"Sentiment is more positive today on hopes of global growth returning on a Fed that's less aggressive and perhaps that can stoke a bit of global growth on lower interest rates," said Giles Coghlan, chief market analyst at HYCM.
"As long as inflation doesn't move higher, it looks like the Fed has done enough in the near term."
Despite the session's gains, both the FTSE indexes are on course to post weekly declines, as a slew of mixed earnings reports and worries about the U.S. banking sector outweighed hopes of sooner-than-later rate cuts in the U.S and Europe.
Pharmaceuticals (.FTNMX201030) and beverages (.FTNMX451010) fell 0.5%, each, with the internationally-focussed sectors taking cues from the pound hitting a one-year high against the dollar on Thursday.
Among major movers, IAG (ICAG.L) jumped 4.6% after lifting its 2023 profit forecasts on strong travel demand for the summer and beating first-quarter performance expectations.
IHG Plc (IHG.L) lost 2.9% after the Holiday Inn owner said CEO Keith Barr would step down on June 30, with the company's Americas CEO Elie Maalouf set to succeed him.
