- FTSE 100 up 43 points at 10,446
- Wall Street moves higher
- RELX recovers from AI jitters
5.05pm: FTSE gains
The FTSE 100 finished the day on a positive note, adding 43 points to close at 10,446 points. Meanwhile, US stocks moved higher as CPI inflation cooled more than expected.
“Softening US inflation, to its lowest level since May, reflected declining energy prices and a moderation in food cost increases,” IG chief technical analyst Axel Rudolph said in a statement.
“The drop pushed US stocks and Treasury yields lower, with the 10-year yield falling to 4.05%, its lowest level since early December, as Fed rate cut expectations swung back from July to June.”
2.58pm: Wall Street edges into red
The Footsie was little changed mid-afternoon, tracking a hesitant mood on Wall Street as investors weighed fresh US inflation data and what it might mean for interest rates.
In New York, the Dow and Nasdaq slipped modestly while the S&P 500 hovered around the flatline after a bruising session for technology shares.
January’s consumer price index rose 0.2% month on month and 2.4% year on year, a touch softer than expected, prompting traders to edge back towards bets on a Federal Reserve rate cut in June.
Even so, nerves lingered after heavy selling linked to artificial intelligence fears spilt into more traditional sectors.
Applied Materials jumped on strong guidance, while Pinterest slumped on revenue disappointment, as Rivian and Moderna both advanced after earnings updates.
2pm: Flat-footed Footsie
The Footsie was flat ahead of the New York open as US stock futures pointed lower amid persistent concerns over artificial intelligence disruption and ahead of key inflation data.
Futures for the Dow Jones Industrial Average and the S&P 500 were down about 0.3%, while Nasdaq futures slipped 0.2% after the technology-heavy index led declines in the previous session.
Wall Street closed sharply lower on Thursday, with the Nasdaq down 2%, the S&P 500 off 1.6% and the Dow falling 1.3%.
January consumer price index figures, due at 8:30am Eastern Time, are expected to show headline inflation rising 0.3% month on month and easing to between 2.5% and 2.7% year on year.
Shares in electric vehicle maker Rivian Automotive jumped 14.6% in after-hours trading after it reported fourth-quarter revenue of $5.37 billion, up 8%, narrower net losses and its first annual gross profit of $144 million.
12.36pm: RELX leads the risers
RELX shares rose 6% after it remained a 'buy' at both Deutsche Bank and UBS following full-year 2025 results, although both banks reduced their price targets to reflect sector de-rating and higher discount rates.
Deutsche cut its price target to 3,050p from 3,700p, while UBS moved to 3,600p from 4,570p.
Both argued that recent share price weakness, driven by concerns over artificial intelligence disruption, had created an attractive long-term entry point.
RELX reported 7% underlying revenue growth in 2025 and delivered 90 basis points of margin expansion, broadly in line with consensus expectations.
Adjusted cash conversion improved to 99% from 96%, reflecting strong cash generation and limited net merger and acquisition activity.
The group announced a £2.25 billion share buyback and continued its pattern of high single-digit dividend growth, which Deutsche said underlined financial strength and a commitment to maximising shareholder returns.
The German bank said the results presentation reinforced RELX’s proprietary data and content positioning, which he believed made the business difficult to displace.
11.20am: Footsie retraces gains
The FTSE 100 has retraced some of the morning's gains and is now just 8 points higher at 10,410 as the morning session draws to a close.
In the US, stock futures have all turned negative, with the Nasdaq now expected to open 0.3% down after rising earlier. S&P futures are also 0.3% lower, with those for the Dow Jones down 0.4%.
"We are seeing a cautious tone in Europe this morning, following on from the jitters seen throughout US and Asia," commented Joshua Mahony, chief market analyst at Scope Markets.
"The concerns that have revolved around AI disruption in the software segment have spread into any other part of the US market that could lose business to new low-cost technological advances."
10.30am: Footsie bucking the trend
The FTSE 100 has held onto most of its early gains, currently up 18 points at 10,420.85, despite a bleak picture on other markets.
Across the channel, the Paris CAC 40 is down 0.3%, while Frankfurt's Xetra is down 0.1% and the Euronext 100 has shed 0.2%. Asian markets ended lower, led by a 1.7% decline for Hong Kong's Hang Seng. Sydney's ASX 200 fell 1.4%.
After yesterday's steep decline, US futures are pointing to a mixed start for Wall Street, with the Dow expected to slide 0.1% at the open, while the Nasdaq and S&P 500 recover some lost ground.
That could change, of course, following the release of January's CPI data at 1:30pm GMT.
Annual core inflation is projected to ease to 2.5%, its lowest reading since March 2021, compared with 2.6% in the prior month. On a monthly basis, core CPI is expected to have increased by 0.3%, slightly above December's 0.2% rise.
9.30am: Small cap movers
HeLIX Exploration PLC (AIM:HEX, OTCQB:HHEXF) jumped 9% after the company fixed a minor technical hiccup that briefly delayed helium production at its Montana Rudyard project. The issue with the Variable Speed Drive (VSD) is now resolved, and the AIM-listed explorer is gearing up to hit its production milestone. CEO Bo Sears highlighted the team’s hard work and the project’s strong potential, with plans to welcome prospective offtake partners once helium starts flowing. Read more
SDI Group PLC (AIM:SDI) rose 4.9% after it agreed to buy PRP Optoelectronics for a net £9.3m, expanding the buy-and-build group into the avionics market and boosting its exposure to aerospace and defence supply chains. PRP makes high-performance microLEDs and LED systems used in avionics displays, thermal imaging and UV purification, supplying major programmes including the Eurofighter Typhoon, F-16 and F-22 Raptor. Read more
CelLBxHealth PLC (AIM:CLBX, OTCQB:ANPCF, FRA:DWV) saw its shares tick up 3% to 1.08p after announcing it’s letting go of its US FDA establishment licence for the Parsortix system. The Guildford-based firm, which supports cancer research with its circulating tumour cell tests, says most Parsortix platforms are used for internal research, making the licence unnecessary. Read more
SkinBioTherapeutics PLC (AIM:SBTX, FRA:5KW) slid 27% to 14.3p after the AIM-listed skin health group said chief executive Stuart Ashman had resigned, following his suspension pending an investigation into his conduct. The board said a full probe is underway with professional advisers. Non-executive chair Martin Hunt will step in as executive chair on an interim basis, while the company searches for both a temporary and permanent chief executive. Read more
GSTechnologies Ltd (LSE:GST) slipped 5.8% after the company revealed its fintech arm, Semnet, has taken a dispute with former sellers to the courts. Mediation over alleged breaches of fiduciary and contractual duties didn’t work, so Semnet has now issued a writ seeking around US$4.2 million in damages. GSTechnologies stressed the move is all about safeguarding shareholder interests, following earlier arbitration and a December mediation that couldn’t reach a settlement. Read more
9am: Gold regains some glister
Gold regained some ground on Friday after a sharp selloff in the previous session, as bargain hunters stepped in ahead of key US inflation data.
The metal is currently 1.3% firmer at $4,978.50 an ounce, after falling 3.2% on Thursday. Silver is up 4.8% at $78.95 after plunging close to 11% on Thursday.
According to a Bloomberg report, Gold’s retreat may have been exacerbated by margin calls and algorithm-driven trades, while some investors likely took profits after recent gains.
All eyes are now on the US CPI data due this afternoon, which could influence the Federal Reserve’s next move. Strong January jobs figures have already dampened expectations for rate cuts, typically a boost for non-yielding assets like gold.
According to Tickmill Group's Patrick Munnelly, January inflation is expected to moderate, with headline CPI likely rising 0.3% month-over-month and slowing to 2.5%-2.7% year-over-year.
"Weak demand and sluggish retail sales highlight economic imbalances despite strong January payrolls, with growth largely driven by trade and AI-related investments," Munnelly said.
8.30am: Profits jump at NatWest
Back to Natwest. The bank had a cracking 2025, with profits and income jumping sharply. We’re talking a total income of £16.4 billion (up 12%) and a tidy £5.5 billion in profit for shareholders.
It hiked the full-year dividend by a massive 51% to 32.5p and teased a fresh £750 million share buyback coming early next year.
CEO Paul Thwaite is feeling pretty bullish, noting that its strategy is firing on all cylinders, from helping folks buy homes to scaling up businesses. It isn't slowing down, either; the bank has set some "stretching" new targets for 2028, aiming for even better efficiency and consistent dividends.
In short, the coffers are full, the shareholders are happy, and NatWest is feeling very ambitious about the future.
After that early surge, the bank's shares are now down 1.3%.
8.15am: Footsie off to a positive start
The FTSE 100 started Friday the 13th on the front foot, brushing off AI concerns that sent Wall Street and Asian markets lower overnight.
London's blue-chip index gained 36 points to 10,438.01 in opening trades, recovering some of Thursday's losses. It closed at a record high on Wednesday.
Top of the Friday leaderboard is RELX PLC (LSE:REL), up 2.9% and building on yesterday's gains after full-year results met expectations and management unveiled a larger-than-forecast £2.25 billion share buyback.
NatWest Group PLC (LSE:NWG) is up 1.9% after it reported a strong rise in 2025 earnings and pledged more returns to shareholders. More on that shortly.
Private equity firm 3i Group PLC (LSE:III) is up 1.7% and Lloyds Banking Group PLC (LSE:LLOY) has gained 1.5%.
On the downside, sports betting group Entain PLC (LSE:ENT) is down 3.1%, British Land Company PLC (LSE:BLND) has shed 1.6% and Burberry Group PLC (LSE:BRBY) is down 1.5%.
7.45am: Friday the 13th comes early for risk assets
While the FTSE 100 seems poised to shrug off any "Friday the 13th" superstitions, the real bad luck hit risk assets yesterday, and the ripple effects are still being felt across Asia this morning.
The catalyst? An improbable disruption from the micro-cap world. Deutsche Bank’s Jim Reid highlighted the irony of the situation:
"It’s perhaps indicative of the state of markets at the moment that a $6 million market cap company that until recently specialised in Karaoke helped wipe tens of billions off logistics stocks to add to the weakness."
The company in question is Algorhythm Holdings. Formerly a karaoke business, the firm recently pivoted to AI, unveiling a tool designed to aggressively optimise freight efficiencies. Ironically, by promising to eliminate industry waste, the tool signalled a potential drop in overall demand for shipping services, triggering a massive sell-off in major trucking and logistics shares on Thursday.
Reid didn't miss the chance to lean into the comedy of the pivot:
"I've seen some shocking Karaoke performances in my time, but this perhaps tops them all."
7.15am: FTSE 100 to reclaim losses
The FTSE 100 is set to open higher as the week draws to a close, after pulling back from a record high in Thursday's session.
London's blue-chip index has been called 12 points higher on the futures market. Yesterday, it closed 69 points down at 10,402 as Wall Street also retraced gains due to ongoing worries about AI-driven disruption and ahead of a key inflation reading today.
The Nasdaq led the declines, down 2%, while the S&P 500 slipped 1.6% and the Dow Jones dropped 1.3%.
Asian markets are mostly weaker today. The Nikkei is down 1%, the Hang Seng in Hong Kong has shed 1.8%, and the Shanghai SSE Composite is 1.2% off the pace. Seoul's Kospi ended flat, and the ASX 200 in Sydney fell 1.4%.