- FTSE 100 off 14 points to 9,283
- Precious metals stocks rise
- UK GDP flatlines in July
- Record closes on Wall Street
4.38pm: FTSE 100 pulls back
The FTSE 100 finished Friday’s session lower, falling 14 points to 9,283, remaining near a record high despite negative economic data.
“The UK economy stagnated in July as GDP flatlined, with a 0.9% drop in industrial output and broad weakness in manufacturing offset by modest gains in services and construction,” IG senior technical analyst Axel Rudolph said.
“Sterling briefly slipped against the dollar on the news, while the FTSE 100 defied the downbeat data, remaining close to record highs thanks to strength in insurance and mining stocks.”
4.00 pm: FTSE 100 loses its lustre
The FTSE 100 slipped below the gain line in the final half hour of trading on Friday, pulled lower by a mixed picture on Wall Street.
The Dow Jones Industrial Average was down triple digits, while the S&P 500 and Nasdaq eked out marginal gains.
US indices opened in different directions as traders looked ahead to the Federal Reserve’s policy meeting next week.
Investors have been parsing weeks of data for clues on the Fed’s next move.
Jobs numbers have pointed to a weakening labour market, with just over 20,000 positions added last month.
Weekly initial jobless claims jumped to their highest level in nearly four years.
Inflation, though, has proved sticky.
Consumer prices rose again last month, adding to signs that Donald Trump’s tariffs are beginning to feed into the wider economy.
Even so, markets are betting that inflation is subdued enough for the Fed to cut rates next week, with further reductions likely to follow.
1:25 pm: Wall Street mixed signals as record nears
US stock futures were mixed ahead of the open, with the Dow Jones and S&P 500 expected to retreat from Thursday's record high when stocks rose on the growing likelihood of an interest rate cut next week.
Dow futures were down 0.2% an hour and a half before the market open, with those for the S&P down 0.1%, while Nasdaq futures were a few points higher.
The Dow closed 1.4% up yesterday after the latest labor market and consumer inflation data all but cemented a rate cut when the Federal Open Market Committee meets next week. The S&P gained 0.9% while the Nasdaq added 0.7%.
According to interactive investor's Richard Hunter, the stars are now "fully aligned" for a US interest rate cut next week. "The only debate is what the scale of the reduction might be," he commented.
"The Federal Reserve has a dual mandate which covers inflation and employment, and updates on both yesterday paved the way for monetary easing, sending each of the main (US) indices to both intraday and record closing highs. Underpinned by a week which has seen the AI euphoria being rekindled, stocks have risen across the board, including the high-performing tech sector as well as the likes of banks and retailers, which should benefit from a lower interest rate environment."
11.15 am: Gold glistens, precious metals stocks in demand
London’s precious metals miners were well bid in early trade on Friday, with Fresnillo and Endeavour Mining among the strongest risers, as gold extended a powerful rally.
Bullion climbed above $3,650 an ounce, setting a fresh record this week and leaving it almost 2% higher since Monday. Silver also surged past $42 an ounce, its highest level since 2011.
The gains come as traders increasingly expect the US Federal Reserve to start cutting interest rates, possibly as soon as next week.
August inflation data met forecasts, while recent weak labour-market numbers have eased concerns about price pressures. That has given policymakers scope to loosen policy, weighing on the dollar and Treasury yields, both supportive for gold.
The metal has now advanced nearly 40% in 2025, outpacing equities and most commodities, with central-bank buying and heavy inflows into exchange-traded funds adding further momentum.
Bloomberg data showed ETF holdings expanded by almost 25 tons this week alone.
Analysts warned, however, that at such elevated levels, gold trading is increasingly driven by short-term sentiment rather than long-term positioning. Silver may attract fresh interest as a cheaper alternative for investors wanting exposure to the rally.
Fresnillo was up 2%, while Endeavour advanced 1.7%. Pan African Resources PLC (AIM:PAF, OTCQX:PAFRY, JSE:PAN), which is soon to join the FTSE 250, outstripped its bigger peers with a 2.6% gain.
10.30: FTSE 250 declines as GDP flatlines
The FTSE 100 may be eyeing a new record as it follows Wall Street's lead, but further down the FTSE rankings, shares are not quite as ebullient this morning.
While the Footsie is now up 29 points at 9,326.77, the FTSE 250 index has shed 25 points to 21,668.80 following the news that the UK economy flatlined in July.
“A lacklustre GDP figure is more relevant to the FTSE 250 than the FTSE 100 index, given the former has a greater proportion of domestic-focused companies,” commented AJ Bell's Russ Mould.
“It’s never a good look for a country to be stuck in the mud, and the GDP data will put even more pressure on Chancellor Rachel Reeves to find a way to plug the gap in public finances without derailing the economy."
Although the headline FTSE 250 index stood its ground, Mould said there were notable areas of weakness among companies that need a robust UK economy to thrive.
"Retailer ASOS, drinks group C&C, and footwear specialist Dr Martens were among the fallers on the UK market, and they all depend on the consumer feeling happy to splash the cash," he added.
10.15am: Small caps making moves
ATOME PLC (AIM:ATOM) shares jumped as much as 35% after sealing a 10-year offtake deal with fertiliser giant Yara. The agreement covers all output from its Villeta project in Paraguay, marking the last big step before a final investment decision on the US$630 million development later this year. Read more
Red Rock Resources PLC (AIM:RRR) shares leapt 15% after striking a £1 million cash deal with Soma Gold for a royalty over gold production from the El Limon mine in Colombia. The sale also includes share subscription rights, giving Red Rock fresh funds to cut liabilities and bolster working capital, chair Andrew Bell told investors. Read more
Conroy Gold and Natural Resources PLC (AIM:CGNR, OTC:CGDNF) is raising up to £1.5 million through a 10p share placing to fund Irish exploration. The non-brokered raise targets long-term North American investors, with proceeds supporting its “Discs” project and joint-venture talks. Its shares dipped 10.6% in London. Read more
Blencowe Resources (LSE:BRES) is stepping into a crucial phase after raising £1.12 million to back its Orom-Cross graphite project in Uganda. The funds will complete a Definitive Feasibility Study due later this year and support financing plans. Chair Cameron Pearce says plenty of newsflow is coming, including drill results and a resource upgrade. Its shares retreated 6% in London. Read more
Gemfields Group Limited (AIM:GEM)pulled in $32 million from its latest emerald auction, with every lot sold at stronger prices. The standout was Imboo, an 11,685-carat gem from its Kagem mine in Zambia. After a weak sale last year, the result shows demand for Zambian emeralds is firming again. Read more
ANGLE PLC (AIM:AGL, OTCQX:ANPCY) said CEO Andrew Newland and finance director Ian Griffiths will step down after talks with a major shareholder. Both will stay on during the transition, while the board — now two non-executives — looks to add new members to guide the liquid biopsy company forward. Read more
9am: BoE likely to hold back as Fed cuts
The Federal Reserve Open Market Committee is widely expected to cut interest rates when its two-day meeting concludes next Wednesday, following the latest inflation and jobs data. The Bank of England is not expected to follow suit a day later.
Industrial action amongst doctors and transport workers, sticky inflation and a cooling labour market will certainly be giving the Bank "pause for thought" in continuing its current easing cycle and make any imminent move on rates unlikely, according to Canada Life Asset Management's Steve Matthews.
"Our view is that the Bank of England will hold firm at September’s upcoming meeting," Matthews said. "Markets have already priced in one further cut by year-end, and whilst November may have offered opportunity for that, there’s a strong case that the MPC will exercise caution ahead of the Autumn Budget, which is shaping up to be a pivotal moment for fiscal policy.
"It would be a significant leap of faith for the Bank to move prematurely without clarity on what the Chancellor plans to deliver."
8.15am: FTSE off to a strong start
The FTSE 100 took its cue from a record close on Wall Street, jumping 25 points, or 0.27%, to 9,323.03 in the first 15 minutes of Friday trading.
Mining shares led the way, with Fresnillo PLC (LSE:FRES), Anglo American PLC (LSE:AAL), Glencore PLC (LSE:GLEN), Antofagasta PLC (LSE:ANTO), Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) and Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) topping the leader boards with gains of 1.4% to 1.8%.
Oil major BP PLC (LSE:BP.) and retailers J Sainsbury PLC (LSE:SBRY) and Tesco PLC (LSE:TSCO) were the biggest losers, shedding 0.4% to 0.8%.
According to interactive investor's Richard Hunter, the stars are now "fully aligned" for a US interest rate cut next week.
"The only debate is what the scale of the reduction might be," he commented.
"The Federal Reserve has a dual mandate which covers inflation and employment, and updates on both yesterday paved the way for monetary easing, sending each of the main (US) indices to both intraday and record closing highs. Underpinned by a week which has seen the AI euphoria being rekindled, stocks have risen across the board, including the high-performing tech sector as well as the likes of banks and retailers, which should benefit from a lower interest rate environment."
7.30am: Bad news for the Chancellor
As Chancellor Rachel Reeves prepares her Autumn budget, she'll wake up to some disappointing news from the ONS this morning.
UK GDP stalled in July, showing no growth after a 0.4% rise in June, as weakness in production offset gains elsewhere. Over the three months to July, the economy grew just 0.2%, slowing from earlier in the year.
Services provided the biggest boost, up slightly thanks to strength in transport and storage, while wholesale and retail struggled. Manufacturing and mining weighed heavily, dragging production lower. Construction offered a modest lift with new housing and infrastructure projects.
Despite the slowdown, GDP was still 1.4% higher compared with July last year.
7.15am: FTSE 100 called higher
The FTSE 100 has been called higher ahead of Friday's open as it follows a record close for US blue-chip stocks overnight.
Futures for London's top index indicated a gain of 24 points, or about 0.25%, after ending Thursday 72 points up at 9,297 as defence stocks rallied after a call by Poland and Ukraine for protection after Russian drones entered Polish airspace.
The Dow Jones crossed 46,000 points for the first time to finish Thursday 1.4% higher at 46,108 points on growing expectations that the Federal Reserve will lower interest rates next week, despite persistently sticky inflation. The S&P 500 closed up 0.9% and the Nasdaq added 0.7%.
In Asia this morning, Tokyo's Nikkei is up 1%, the Hang Seng in Hong Kong has gained 1.3% and Shanghai's SSE Composite is flat. In Mumbai, the BSE Sensex has added 0.5%, while in Sydney, the ASX 200 is up 0.7%.
"As we approach the end of the week, markets have been in a buoyant mood over the last 24 hours, continuing into this morning's Asian session, with investor attention squarely focused on the slightly higher than expected US August CPI release, and the notably higher than expected jobless claims data," commented Deutsche Bank's Jim Reid.
"The influence of the latter won out with December fed futures spiking to price in 76bps of cuts immediately after the numbers, having been at 68bps before the release. We ended up pricing in 72bps at the close."