- FTSE 100 closes at 8,787 points
- May retail sales sink 2.7%
- DORE jumps 22% on takeover offer
- Berkeley shares fall 7% on FY25 result
4:40pm: FTSE 100 little changed
The FTSE 100 finished Friday’s trading session little changed at 8,787 points, down lightly from its previous close of 8,792 points.
Across the Atlantic, Federal Reserve Governor Christopher Waller has indicated that the Fed could begin cutting interest rates as early as its July meeting, signaling a potential shift toward easing monetary policy.
“I think we’re in the position that we could do this as early as July,” Waller said in an interview with CNBC on Friday.
The Fed's policymaking group remains somewhat divided on the path forward, with some officials expecting no cuts this year and others projecting two or three reductions by the end of 2025.
3:12pm: US stocks edge higher
US stocks drifted higher at the open on Friday as investors weighed up the probability of an interest rate cut from the Fed in July amid geopolitical tensions.
The Dow Jones added 0.3%, the S&P 500 had added 0.2% and the Nasdaq was up 0.1%.
“News that President Trump would delay any decision on joining Israel’s attacks against Iran has boosted the market mood at the end of this week,” XTB research director Kathleen Brooks said.
“The risk is that Trump changes his mind. However, like reciprocal tariffs, Trump sets movable deadlines.”
2:02pm: US futures turn positive
Futures markets turned around shortly before the open, with the Nasdaq predicted to lead the gains when trading gets underway.
Half an hour until trading starts, and the Nasdaq is expected to jump 0.4%, with Dow and S&P futures pointing to a 0.3% gain for both indices.
At home, the FTSE 100 is now 30 points up at 8,822.19, an increase of 0.35%.
12.30pm: US futures down despite Trump's delay
US stock futures pointed to a weaker start on Friday as investors return from the Juneteenth federal holiday to news that US Donald Trump plans to take a couple of weeks to decide whether to intervene in the Israel-Iran conflict, now entering its second week.
Two hours before trade resumes, futures for the Dow Jones were down 0.2%, while those for the S&P 500 and Nasdaq were between 0.1% to 0.2% lower.
"Based on the fact that there's a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision whether or not to go within the next two weeks," Trump said in a message delivered by White House press secretary Karoline Leavitt.
European markets are trading higher, meanwhile. The FTSE 100 is up 32 points at 8,823.85, a gain of 0.36%. On the continent, Frankfurt's DAX is up 0.9%, and the CAC 40 in Paris is 0.6% firmer.
Asian markets closed mixed. Tokyo's Nikkei 225 shed 0.2%, the Shanghai composite ended a couple of points down, but the Hang Seng in Hong Kong climbed 1.3%.
11am: DORE surges on takeover offer
Shares in Downing Renewables & Infrastructure Trust PLC (LSE:DORE) jumped 22% after Bagnall Energy launched a £175 million takeover offer at 102.6p per share. The bid is 24% above the recent share price but 7.5% below NAV.
Backed by nearly 48% of shareholders, the deal is expected to go ahead via a court-approved scheme.
Analysts see it as a smart consolidation move in a sector facing discounts and headwinds. The board recommends the offer, and shares climbed to 101.5p. More here
10.30am: Small Cap Headlines
HeLIX Exploration PLC (AIM:HEX, OTCQB:HHEXF) reported strong interim results, highlighting successful drilling at its Montana helium project. Key wells showed promising flow rates, with potential annual cash flow of up to $20 million. Backed by a £4.5 million raise and new US listing, Helix is positioning as a key helium supplier. Read more
Rome Resources Plc (AIM:RMR) has welcomed a draft peace deal between the DRC and Rwanda, brokered by Qatar and the US. The agreement could boost stability in eastern DRC, supporting mining operations and investment. Rome’s three active rigs remain on track, with a full update due before 1 July. Read more
Vault Ventures has announced an 11-year growth plan focused on organic expansion, strategic acquisitions, and integrating Ethereum and Bitcoin into its treasury. Initial crypto purchases total £81,000, with more expected after upcoming fundraises. The company sees digital assets as tools to diversify capital and support its fintech and blockchain focus. Read more
Helium Ventures PLC (AQSE:HEV) (soon to be VaultZ Capital, ticker V3TC) has raised £4 million through an oversubscribed placing at 43p per share. Trading of 9.3 million new shares begins 26 June, pending approval. The rebrand marks a new chapter, with Global Investment Strategy as broker and Cairn Financial as adviser. Read more
9.30am: Relief for London market ... for now
The Footsie has held onto its early gains so far this morning, now up 41 points at 8,832.37.
AJ Bell's Dan Coatsworth noted that the recovery comes as the US appears to have temporarily pulled back from the prospect of intervening directly in the Israel-Iran conflict. But the possibility still looms.
“While the immediate prospect of a US intervention in Iran may have diminished, the fact this is reportedly a two-week hiatus means it will remain a live issue for the markets going into next week," Coatsworth commented.
"A meeting of European ministers with their Iranian counterparts to try and formulate a deal today could be crucial.”
Airlines, banks and other financials are among the stocks leading the way in London. Among the laggards, housebuilders are weak after Berkeley’s full-year results disappointed, and Shell and BP surrendered some of their recent gains as oil prices eased back from the highs seen earlier this week, he added.
8.45am: Retail sales wane in May
Looks like one of the warmest Mays on record sent Brits to the beach rather than the shops as UK retail sales volumes fell 2.7% last month, the steepest monthly drop since December 2023.
Numbers out from the Office for National Statistics (ONS) show food store sales led the decline, down 5%, as shoppers cut back amid higher prices. All major retail sectors recorded volume drops, with non-food and online sales also falling. Online spending dipped 1% month-on-month.
Despite the weak May figures, overall sales volumes rose 0.8% in the three months to May compared with the previous three-month period.
“Retail sales volumes fell 2.7% month-on-month in May, but this followed large rises in three of the previous four months, and May's decline appears to be payback for that earlier strength," said Matt Swannell, chief economic advisor to the EY ITEM Club.
"A fall in food store spending accounted for most of May's weakness, as the sector's unusually large gain in April unwound, but all of the major categories saw sales decline."
8.15am: Footsie starts on the front foot
The FTSE 100 got off to a positive start on Friday after the White House said US President Donald Trump would decide within the next two weeks on whether to join Israel's assault on Iran, with the window for negotiation remaining open.
"Prior to this, several sources had pointed to a US strike on Iran possibly happening as soon as this weekend which led to a risk-off mood yesterday in the quiet US-holiday influenced session," Deutsche Bank's Jim Reid commented in a morning note.
The London market opened 26 points higher at 8,817.55, a gain of 0.29%.
Leading the gainers are airline companies International Consolidated Airlines Group SA (LSE:IAG) and easyJet PLC (LSE:EZJ), up 2.6% and 1.9% respectively. They've been hard hit by the week-long conflict between Israel and Iran.
Melrose Industries PLC (LSE:MRO, OTC:MLSPF) and Standard Chartered PLC (LSE:STAN) are also among the top four gainers.
Berkeley Group Holdings PLC (LSE:BKG) has slumped more than 7% following the release of its results. Revenue was up, but the housebuilder reported a dip in profits.
“Berkeley has an ambitious strategy and a great deal in its favour, but ultimately it operates in a cyclical sector which is currently constrained by the wider economic environment," said interactive investors' Richard Hunter.
"There have been signs of progress, but for potential buyers the level of interest rates and general affordability are under some strain. In the year, Berkeley saw private sale reservations increase by 5%, but levels remain 30% shy of the previous year."
7.55am: Berkeley confident about FY26 guidance
Results out from Berkeley Group Holdings PLC (LSE:BKG) this morning show a profit of £528.9 million, down 5.1% from a year earlier, with the housebuilder returning £381.5 million to shareholders, despite tough economic conditions.
Over 75% of FY26 sales are already secured, backing confidence in meeting £450 million profit guidance. Its new £5 billion strategy targets growth through Build to Rent and brownfield regeneration. Recent site wins in Slough and Birmingham boost its pipeline, while the group says it continues to support government housing goals and calls for faster planning approvals.
7.15am: FTSE 100 likely to rise at open
The FTSE 100 has been called higher as the week draws to a close, as the US holds fire on intervening in the Israel/Iran conflict, now entering its second week.
London's blue-chip index is likely to jump 43 points at the open for a gain of about half a percent, according to the futures market.
That would claw back some of Thursday's losses, when the index ended 52 points lower at 8,792 due to a mix of macroeconomic uncertainty and geopolitical risks.
"The worsening global geopolitical weather keeps investors in a cautious mode, and will likely prevent them from taking too much risk before the weekend," commented Swissquote Bank's Ipek Ozkardeskaya.
"While the news that the US is giving itself two weeks to decide whether to intervene in Iran – which is slightly better than earlier reports suggesting they would go in this weekend – has somehow eased tensions, looming uncertainties pushed US and European equities lower yesterday. I’m not sure the US buying itself time can be interpreted as a sign of de-escalation."
Wall Street was closed yesterday for the Juneteenth holiday, while Asian markets are mixed as the week wraps up. In Tokyo, the Nikkei is flat, Hong Kong's Hang Seng is up 0.7% and Shanghai's SSE Composite is down 0.1%.