- FTSE 100 down 43 points to 8,933
- GDP contracts 0.1% in May
- Trump threatens 35% tariff on Canadian goods
- IEA reports oil demand is cooling off
- Bitcoin hits new high above $118K
4:50pm: FTSE closes red
The FTSE 100 Index fell 35 points, or 0.4%, to close at 8,941 on Friday.
2.57pm: Stocks down around the world
Wall Street opened in the red, joining European stocks on the retreat due to new tariff-wielding from the White House.
All major US indices pulled back in early trading, the Dow Jones fell 0.6%, the S&P 500 dropped 0.4% and the Nasdaq eased 0.2% lower.
The small- and mid-cap Russell 2000 led losses, falling 0.8%.
Back in London the FTSE 100 remains 0.5% to the bad, which is outperforming other benchmarks around Europe.
1.35pm: Gold up, silver up more
Gold and silver prices pushed up overnight and have continued to build today on gains from the previous two sessions.
Gold fell below $3,300 in early trade on Wednesday before climbing to above $3,350 an ounce.
But silver has risen over 2% to $37.77 per oz.
Silver "took the spotlight", says market analyst David Morrison at Trade Nation, bursting above $37 per ounce to hit its highest level since September 2011.
"As with gold, clues as to where it goes next may well depend on how it behaves on any pullback. The bulls will certainly be encouraged if $37 now holds as support. But traders are well aware of silver’s volatility, so should be treading carefully."
He sees the next upside target for gold being $3,400 which "is a more significant resistance level" for technical analysts.
12.51pm: Bitcoin tops $118.6k
Bitcoin has been buoyant in European trading, rising above $118,600 in the past couple of hours.
The leading cryptocurrency is up over 8% this week, and has doubled over the past 12 months.
"Stocks might keep flinching at every tariff headline, but bitcoin doesn’t care," says market analyst Chris Beauchamp at IG.
Bitcoin has started to display the dislocation from other financial instruments that supporters have long trumpeted, with no effect from Donald Trump's tariffs, tensions in the Middle East nor with Russia, nor disappointing UK economic growth.
Bitcoin "is becoming exactly what its fans have said it will be - an asset that remains aloof from political machinations. It has no supply chain to disrupt and no balance sheet to worry about. Instead, flows and conviction dominate, and here’s where bitcoin comes into its own."
An inflow of institutional money and a more favourable regulatory environment in the US have provided the "perfect backdrop" to the rally, he adds, seemingly taking more energy from Trump’s round of tariff letters this week.
"Whether it can survive a broader selloff in equites if and when tariffs take effect remains to be seen, but for now the cryptocurrency remains the safe haven, leaving gold trailing far behind in recent days."
Next week is officially ‘Crypto Week’ in Washington DC, with lawmakers expected to vote on a range of crypto legislation, says analyst Kenny Polcari at Slatestone Wealth says. "So, get ready. Lots can happen over the weekend – we’ve seen that."
12.01pm: European stocks down, US futures down
By midday, the FTSE 100 appeared to have found a floor, sinking below 8,920 before coming back up a little, though still down almost 0.6%.
The disappointing GDP reading is not the cause, however, as all European markets are in the red, with Germany's DAX tumbling 1.1%, France's CAC 40 down 1% and Spain's IBEX falling 0.9%.
Wall Street futures are down too, with the S&P 500, Dow Jones and Nasdaq 100 all expected to head between 0.6% and 0.7% downwards.
Bond market yields are on the up around Europe and the US, after Donald Trump touted the possibility of raising the tariff rate for all other countries that do not have a trade agreement in place, to 15% or 20%.
"We have still not heard what tariff rate the EU has agreed, so the chances are it could be set between these levels," said market analyst Kathleen Brooks at XTB.
She said the GDP news does not have too much impact on the UK’s blue-chip index or wider stock market, "as they are forward looking and are focusing on life after this tariff uncertainty.
"However, we think that markets could trade with a risk off tone on Friday, as tariff risks rise in the short term on the back of Trump scaling up his rhetoric."
11am: European rally falters ahead of tariff letter
The Footsie has extended the morning's decline, now down 47 points, or roughly 0.5%, to 8,928.81.
Market analyst Joshua Mahony at Rostro reckons it's a bit of profit taking after indexes hit record highs this week, and as the markets await news of the tariff letter promised to the EU by Donald Trump by the end of the week.
He's already threatened Canada with a 35% tariff on imports.
"Coming off the back of a week that has seen record highs for the FTSE 100, S&P 500, and Nasdaq, it is no wonder we are seeing things cool a little today," Mahoney said. "While the tariff deadline extension has provided some room to strike deals, the strength seen for equity markets could come into question if we continue to move forward without any particular progress."
Ahead of that letter, Frankfurt's DAX is down 1%, while the Paris CAC 40 is 0.9% weaker.
US stocks also look set to fall at the open. Dow Jones futures are down 0.7%, while those for the S&P 500 and Nasdaq are 0.6% and 0.5% weaker, respectively.
10.15am: Oil demand cooling off
According to the IEA’s July Oil Market Report, global oil demand is really starting to cool off. Growth is set to rise by only 700,000 barrels a day this year—the slowest pace since 2009, if you don’t count the Covid slump.
Emerging markets in particular just aren’t using as much. Meanwhile, supply is booming.
In June alone, output jumped by nearly a million barrels a day, with Saudi Arabia leading the charge. Prices briefly shot past $80 a barrel after Israel hit Iranian targets but soon settled back down. Refineries are now gearing up for the summer travel rush, and Chinese firms are stockpiling crude like there’s no tomorrow, quietly tightening supplies for everyone else.
The IEA noted that while on paper there’s plenty of oil, strong refining margins and pricing signals point to a market that’s tighter than it looks. Non-OPEC producers are expected to keep driving supply higher into 2026.
Brent crude is marginally weaker at $68.58 a barrel this morning.
The Footsie, meanwhile, is now 38 points down at 8,937.80.
9.55am: Investors 'ran out of energy'
As well as the disappointing GDP reading for May, US President Donald Trump's threat of a 35% tariff on Canadian goods may be weighing on sentiment as the week draws to a close.
The bombshell, due to take effect from 1 August, came as the two countries were racing to finalise a new trade deal.
Trump posted the news on Truth Social, adding threats of 15–20% tariffs on most other trade partners. Canadian Prime Minister Mark Carney fired back, promising to defend Canadian workers and businesses. Trump has already sent over 20 tariff letters this week and is eyeing new EU tariffs too.
“The UK economy being stuck in the mud and the threat of high tariffs on Canada won’t be a shock to markets, but they are hard to ignore,” said AJ Bell's Dan Coatsworth.
“After a strong start to the week, investors ran out of energy on Friday. European indices were in the red and futures prices imply Wall Street will follow the same path when it opens for trading," he added.
“Whether this is investors being reminded of headwinds or simply pausing for breath, it’s clear that uncertainty will prevail well into the summer.
Coatsworth noted that the corporate reporting season begins in earnest next week with the big US banks. That will shift the focus to profits and outlook statements, giving valuable insight into how the business world is coping with a multitude of pressures.
"Any corporate optimism is likely to prompt a tickertape parade on the markets as investors look for confirmation that tariff uncertainty hasn’t caused widespread damage to earnings,” Coatsworth said.
9.30am: Small cap headlines
Accesso Technology Group PLC (LSE:ACSO, OTC:LOQPF) expects 2025 revenue at the lower end of guidance but maintained its earnings forecast, with EBITDA margins steady at 15%. The company highlighted stronger sales momentum, with 33 customers signed to its Freedom platform, including its first win with a theme park operator. Read more
Arc Minerals Limited (AIM:ARCM) has settled a long-running dispute over $1.25 million owed by Avanti and Regency. The new deal secures staged payments, with discounts for early settlement and interest penalties if unpaid after 2025. Management plans to use the recovered funds to strengthen working capital heading into 2026. Read more
Solvonis Therapeutics PLC (LSE:SVNS) has raised £1 million from top shareholders to speed up AI-driven drug development for depression and stimulant addiction. The funding, secured at a premium, will help advance lead identification and early validation of treatments. CEO Anthony Tennyson said it strengthens their strategy to tackle unmet needs in mental health. Read more
URU Metals Ltd (AIM:URU) shares jumped 18% after drilling at its Zeb Nickel Project in South Africa confirmed higher-grade nickel-copper-PGE mineralisation across multiple zones. CEO John Zorbas said the results validate the project’s scale and potential, with mineralisation open in several directions and more high-grade targets identified for exploration. Read more
Sundae Bar Plc (AIM:SBAR) has started using surplus cash from its recent fundraising to buy Bitcoin, aiming to diversify its treasury without distracting from its AI marketplace business. CEO Jill Kenney said the strategy balances capital preservation and growth. The firm also reported rising TAO token rewards and strong developer engagement. Read more
8.45am: More GDP reactions
The National Institute of Economic and Social Research warned that the UK’s economic outlook remains weak after GDP fell 0.1% in May, following April’s decline.
Hailey Low, Associate Economist, said: “Failure to implement the planned spending cuts has further eroded the UK’s fiscal space and its ability to respond to future shocks.” She added that with strained public finances and muted growth prospects, the Chancellor faces tough choices to raise taxes or cut spending in the autumn budget.
David Bharier, Head of Research at the BCC, said growth “remains fragile, lacking sustained drive.” UK GDP rose 0.5% in the three months to May but fell 0.1% in May alone, with production and construction output down and tariffs likely weighing on activity.
Bharier added: “Strong, sustainable growth is the only route out of the Chancellor’s current fiscal trap,” noting weak SME sentiment and calling for simpler taxes and faster policy action.
Rob Wood, chief UK economist at Pantheon Macroeconomics, said May's decline looks overstated and should partly reverse. He noted auto and pharma output were volatile, while energy supply barely rebounded after April’s slump. Services rose 0.1%, with legal activity up strongly.
Wood expects a rebound in June, helped by better retail, real estate, and hospitality data. He also said underlying growth is solid and predicts GDP could pick up to 0.3% quarter-on-quarter in Q3, despite tax and inflation headwinds.
“Headline GDP disappointed, which will keep the market pricing a high probability of an MPC rate cut in August, with CPI and labour market data next week the only barriers to that rate reduction now," Wood said.
The FTSE 100 is now 5 points down at 8,970.46.
8.15am: Footsie edges lower on GDP release
As expected, the FTSE 100 opened marginally lower but quickly turned around in the first 15 minutes of trade to trade 4 points higher at 8,980, building on yesterday's record close.
Gold miners Fresnillo PLC (LSE:FRES) and Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) are the biggest gainers, closely followed by oil major BP PLC (LSE:BP.), all adding more than 1% on the back of firmer gold and oil prices.
Spirax Group PLC (LSE:SPX), JD Sports Fashion PLC (LSE:JD.) and Smith & Nephew PLC (LSE:SN) are leading the decliners this morning, with losses of 1% to 1.5%.
On the continent, Frankfurt's DAX has shed 0.4% this morning, while the CAC 40 in Paris is 0.3% lower.
In Asia, Tokyo's Nikkei 225 is down 0.2% and the SSE Composite in Shanghai is flat, but Hong Kong's Hang Seng has climbed 0.8%.
In the US overnight, the S&P 500 edged up 0.3% to a fresh record. The Dow Jones added 0.4%, while the Nasdaq rose 0.1%.
7.45am: More weakness ahead
Economists have warned that the UK’s latest GDP decline signals deeper trouble ahead. The economy shrank 0.1% in May, following April’s 0.3% fall.
Jeremy Batstone-Carr of Raymond James said the figures confirm Q1’s growth was a “one-off” driven by businesses rushing to beat US tariffs. He noted: “April’s reversal and May’s weakness leave the economy on track for a shallow contraction once June data closes Q2.”
While services held up modestly, production and construction slumped. Batstone-Carr added hopes for a recovery are “uncertain,” with potential tax rises and trade uncertainty still weighing on confidence.
7.30am: Flutter places bet on FanDuel
Flutter Entertainment PLC (LSE:FLTR) is snapping up Boyd Gaming’s last 5% stake in FanDuel for around $1.76 billion, giving it full control of the US betting giant.
The deal values FanDuel at about $31 billion and extends their partnership to 2038, with cheaper market access costs. Flutter expects to save $65 million a year starting in July.
The buyout will be funded by a bridge loan and should wrap up in Q3, pending approvals.
7.15am: FTSE set for muted open
London's FTSE 100 is expected to open marginally lower after data showed the economy likely shrank by 0.1% last month, against expectations for a 0.1% gain. That continues the slowdown seen in April when the economy shrank by 0.3%. March’s figure was revised higher to show a 0.4% gain.
Ahead of the open, pundits are calling the Footsie a couple of points lower, pulling back from yesterday's record closing high.
Over the three months to May, the economy still managed to grow by 0.5% compared with the previous quarter, mostly driven by steady growth in the services sector.
In May, services output inched up by 0.1%. Production was the main drag, falling by 0.9%, while construction slipped 0.6%.
Quarterly figures were more positive, with production up 0.2% and construction rising 1.2%.
The Office for National Statistics said these early estimates could be revised later.
6.15am: FTSE LIVE for Friday 11 July
After an 'awful April' for UK economic growth, gross domestic product should have pushed back into positive territory in May, most analysts are forecasting.
GDP growth is expected to edge up 0.1% month-on-month, led in large part by a rebound in the services sector, representing a small rebound from the 0.3% decline the month before.
The previous month's contraction was the biggest decline since October 2023, but was caused by a drop in legal activities linked to the stamp duty increase, along with higher energy bills, the increase in employer National Insurance payments and tariff uncertainty.
UK economic activity should show that it "started to normalise" in May, says Thomas Pugh, chief economist at RSM, though he thinks consumer-facing services will "fare poorly".
Balance of trade data, along with services, manufacturing and wider industrial production numbers are also out first thing.
Manufacturing surveys have been steadily recovering in recent months as tariff uncertainty fades, though still point to falling output, while mining output is likely to weight on industrial production after fall in the volume of North Sea oil transferred for refining, says Pugh.
Overall, he expects the economy to grow 0.2% in the second quarter, though growth "will look weak compared to Q1 as tariff and tax front-running unwind, which will weigh on growth".
Announcements expected:
Economic announcements: Balance of Trade (UK), Gross Domestic Product (UK), Index of Services (UK), Industrial Production (UK), Manufacturing Production (UK), Consumer Price Index (EU), Current Account (GER)