- FTSE 100 up 31 points, sets record at 8,691
- House price growth slows
- US PCE inflation climbs as expected
3.52pm: FTSE 100 cruises towards another record close for best month in two years
London’s blue chips have enjoyed a stellar month, with a 6.2% gain since the turn of the year leaving the FTSE 100 on course for its best month since November 2022.
At 8,678, the FTSE 100 had added 31 points for the day come Friday afternoon, leaving the index on course for another record close after hitting an intraday high of 8,691 earlier on.
Smiths Group PLC remained Friday’s biggest riser, having gained 11.2% after detailing the break-up of its business through the splitting off of its Interconnect and Detection wings.
St James’s Place PLC followed as it continued to gain after solid results on Thursday, while Fresnillo PLC headed the fallers in the absence of any major losers.
Its decline came as gold receded from a Thursday all-time high of US$3,820 an ounce to US$2,811 come late Friday, with the yellow metal remaining elevated as fears swirled around Donald Trump’s tariffs on Canada and Mexico, due to be introduced on Saturday.
2.51pm: Nasdaq bounces in solid start on Wall Street
Wall Street enjoyed broad gains as trading got underway on Friday in the wake of expectation-matching personal consumption expenditures figures.
The Nasdaq jumped 0.8% following the bell, as the S&P 500 added 0.4% and the Dow Jones gained 0.3%.
Despite having been hit by the DeepSeek-sparked global tech sell-off on Monday, gains left the Nasdaq and S&P 500 on course to climb 3.2% and 2.1% respectively for the week.
This followed a string of big-tech earnings over the week, with Apple Inc having capped off proceedings temporarily among the Magnificent Seven with positive figures on Wednesday night.
Shares ticked up over 2% as trading got underway as a result, placing Apple top of the Dow’s risers ahead of Amazon.com Inc, which is set to report next week.
Software firm Atlassian Corp was among other gainers on Friday, jumping 18% after trouncing expectations with second-quarter figures.
Walgreens Boots Alliance Inc tanked 15% in the meantime, on news it would suspend dividend payments in a bid to conserve cash.
1.42pm: Fed’s preferred measure of inflation in line with expectations
Core personal consumption expenditures increased in line with expectations last month in the US, figures showed on Friday.
According to the US Bureau of Economic Analysis, the index climbed by 0.3% in January, against 0.1% a month earlier but as expected by the market.
The core rate, excluding energy and food, ticked up by 0.2% versus 0.1% beforehand to also match expectations.
On an annual basis, the headline rate grew by 2.6% as the core rate increased by 2.8%.
Personal consumption expenditures totalled US$133.6 billion as personal income hit US$92.0 billion.
Futures continued to point to a solid start on Wall Street, with the Nasdaq seen leading the charge, up 0.8%.
12.38pm: Shell capital markets day in full view for 'drastic' action
With Shell PLC’s fourth-quarter figures out the way, its upcoming capital markets day is now in full focus after fears of a soft trading were largely mitigated, analysts have said.
Despite missing on earnings, better underlying cash flow from operations had spelled results that were not as bad as fears, RBC analysts said in a note.
“The market seemed to be relieved by only a small miss,” the bank said, after shares ticked up in the wake of the update.
Shell had unveiled a near-50% drop in adjusted earnings to US$3.7 billion (£3.0 billion) year on year, as the likes of weaker oil prices and squeezed margins weighed.
Cash flow from operating activities of US$13.2 billion was 5% higher than a year earlier though, with a US$3.5 billion buyback being unveiled.
Citing a lack of movement in Shell’s valuation multiple despite operation improvement under chief executive Wael Sawan, RBC highlighted March 25’s capital markets day.
“For now, we think simply extending the track record and building more trust would be beneficial, but we wonder whether the company may consider more drastic actions.”
Citi analysts noted such action could come in the form of “a large reset around ambitions in the renewables space,” prompting lower capital expenditure ahead.
At 2,650p, Citi upped Shell’s share price target by 4%, as RBC reiterated 3,500p.
Shares climbed 2,682.5p on Friday.
11.46pm: Wall Street seen higher before key inflation figures
Wall Street appeared set for a boost on Friday morning after a busy week of big tech earnings gave way to key inflation figures.
Futures had the Nasdaq up 0.8% ahead of the opening bell, while the S&P 500 and Dow Jones were seen 0.5% and 0.3% higher respectively.
Positive figures from Apple Inc overnight looked set to aid gains, with the iPhone maker gaining 3.5% in pre-market deals, after its earnings followed the likes of Meta Platforms Inc, Tesla Inc and Microsoft Corp earlier in the week.
Friday brought a pause from so-called Magnificent Seven updates though, ahead of Alphabet Inc and Amazon.com Inc next week, leaving attention on personal consumption expenditures price index figures.
Dubbed the Federal Reserve’s preferred measure of inflation, expectations were for the figures to show the index up 0.2% in December and flat at 2.8% on an annual basis.
“Barring any significant negative surprises, Fed officials are anticipated to uphold their cautious approach to rate cuts, as signalled earlier this week,” Tickmill Group’s Patrick Munnelly said.
Focus was also set to be on any news around Donald Trump’s tariff talk, after the president signalled sweeping 25% taxes on Canadian and Mexican goods as early as Saturday.
10.48am: FTSE 100 off record but on course for best month since November 2022
London’s blue chips scaled back from another record high on Tuesday morning to sit 22 points higher at 8,669.
The FTSE 100 had peaked at 8,691, trouncing several records notched up earlier in the month after a strong start to the year.
Such a start has meant the FTSE 100 is on course for its best month since November 2022, with a 6.1% gain so far.
Back in the fallout of Liz Truss’ mini-budget, London’s blue chips had bounced back over the month for a gain of 6.7%, lagging only behind a 12.4% monthly gain in November 2020, during the pandemic.
AJ Bell analyst Russ Mould noted Friday’s latest gains came as relief swept the market following the likes of the Fed’s rate call and several big-tech earnings in the US.
“Later on, there’s one more hurdle to get over this week as core PCE inflation data is released in the US,” he said.
“This metric is a big factor in informing the decision making of the Fed so a surprise in either direction could make markets increasingly febrile again.”
9.47am: Apple results leave investors on course for $114bn boost
Apple Inc shares headed 3.2% higher in pre-market trading following overnight results, leaving investors set for a US$114 billion boost.
Though iPhone sales fell short of Wall Street expectations, revenue ticked up 4% in its first fiscal quarter to surpass expectations at US$124.3 billion.
Earnings per share hit $2.40 in the meantime, beating estimates of $2.35, with Tim Cook flagging iPhone 16 sales were stronger in markets where Apple Intelligence AI had launched... Read more
8.54am: Trump firms up Canada and Mexico tariff plans
Donald Trump has confirmed 25% tariffs will be slapped on imports from Canada and Mexico this weekend.
Coming into force on February 1, it is unclear yet whether the tariffs will stretch to oil from the neighbouring countries.
Speaking from the Oval Office, Trump said the tariffs aim to tackle undocumented migration, fentanyl smuggling, and trade imbalances with Canada and Mexico.
He also reiterated plans to impose new tariffs on China, citing its role in the U.S. opioid crisis. "China is going to end up paying a tariff also for that, and we're in the process of doing that," he said... Read more
Gold, having hit a record on fears around tariffs earlier in the week, remained elevated at US$2,794 an ounce on Thursday.
Benchmark Brent crude oil was trading down at US$76.01 in the meantime, against US$78.87 earlier in the week, while the dollar remained flat.
8.24am: FTSE 100 continues record-breaking streak
The FTSE 100 pushed further into record territory as trading got underway on Friday, climbing 25 points to a new all-time high of 8,671.
Smiths Group PLC surged 14.7% to head the early risers after detailing plans for a strategic shift, which it said would unlock significant value.
Focus would be placed on its “world-class” John Crane and Flex-Tek businesses, which respectively produce mechanical seals and components to heat gas and fluids, it said.
Electrical connectivity components maker Smiths Interconnect would be divested in the meantime, as its detection division was also separated via a demerger or sale.
Proceeds would be put to increasing share buybacks to £500 million, leaving an additional £350 million to be returned by December, Smiths said.
Elsewhere on the FTSE 100, BAE Systems PLC climbed after falling midweek, while J Sainsbury PLC headed the early fallers in the absence of any major losers.
The FTSE 350 headed nine points higher to 4,752, while the AIM all-share dropped one point to sit at 716.
8.09am: OpenAI set to bag $340bn valuation in latest funding round
ChatGPT maker OpenAI is reportedly on course to bag a US$340 billion valuation through a US$40 billion funding round led by SoftBank.
Discussions were in the early stages and could still fall through, according to a Wall Street Journal-cited source.
Were OpenAI to secure the funds, its valuation would more than double from the US$157 billion seen after it raised US$6.6 billion in October.
Previous reports had said Japan’s SoftBank was set to spearhead the funding with an investment of between US$15 billion and US$25 billion.
SoftBank would surpass Microsoft Corp as OpenAI’s largest investor as a result, with the latest funding set to support commitments to Donald Trump’s US$500 billion AI infrastructure Stargate Project.
7.48am: Intel revenue drops less than expected after boss' departure
Intel Corp gained 3.7% in pre-market trading after results showed revenue fell by less than expected in the fourth quarter.
Revenue dropped by 7% year on year to US$14.26 billion, though was above the US$13.81 billion expected by LSEG-polled analysts.
A US$126 million loss was also recorded, against net income of US$2.67 billion a year ago, with adjusted per-share earnings of US$0.13 nudging past the US$0.12 expected.
Figures marked the first since Pat Gelsinger’s departure as chief executive, whose tenure had seen Intel lag behind competitors in the artificial intelligence race.
Intel noted it continued to lead the AI PC category, despite a wider decline in client computing group sales, as data center and foundry revenue also fell.
“The fourth quarter was a positive step forward,” interim co-chief executive Michelle Johnston Holthaus said.
“Our renewed focus on strengthening and simplifying our product portfolio, combined with continued progress on our process roadmap, is positioning us to better serve the needs of our customers.”
Guidance was laid out for breakeven profit in the first quarter and revenue of US$11.7 billion to US$12.7 billion.
Shares were trading hands at US$20.75 ahead of Friday’s open.
7.27am: House prices grow at slower rate in January
House prices grew at a slower rate in January, signalling a muted start to the year against expectations, figures showed on Friday.
According to Nationwide, the average price of a home in the UK climbed by 0.1% over the month and by 4.1% on an annual basis to £268,213.
This was slower than the 0.7% month-on-month and 4.7% annual uptick seen in December and missed expectations for growth of 0.3%.
Nationwide chief economist Robert Gardner noted the market continued to show “resilience despite ongoing affordability pressures,” which remained stretched.
“A prospective buyer earning the average UK income and buying a typical first-time buyer property with a 20% deposit would have a monthly mortgage payment equivalent to 36% of their take-home pay – well above the long-run average of 30%,” he said.
“Furthermore, house prices remain high relative to average earnings, with the first-time buyer house price to earnings ratio standing at 5.0 at the end of 2024, still well above the long run average of 3.9.”
7.12am: Stocks to fall from record
Futures pointed to a negative start for London’s blue chips on Friday, with the FTSE 100 seen edging lower from Thursday’s record close of 8,646.
Airtel Africa PLC and St James’s Place PLC had led risers after results, while miners also helped buoy the index as gold also hit a record.
Fears around sweeping tariffs under Donald Trump as early as this weekend had boosted gold, with the yellow metal surpassing the US$2,800 per ounce mark for the first time.
Asian markets were mixed overnight, after Wall Street enjoyed gains following figures showing weaker US economic growth over the fourth quarter.
5.00am: Friday's schedule
House price figures from Nationwide will be in focus on Friday, alongside updates from oil giants Chevron and Exxon Mobil.
Announcements due:
Interims: Newmark Security PLC
US earnings: AbbVie, Aon PLC, Chevron Corporation, Exxon Mobil Corporation
AGMs: Avon Protection PLC, Focusrite PLC
Economic announcements: Nationwide House Prices (UK), PCE Price Index (US)