- FTSE 100 up 22 points to 10,466
- US set for subdued start
- Brent crude gains 3.2% to $105.82
- April retail sales dip 1.3% year-over-year
5.05pm: Another winning session
Global stocks moved higher as earnings continued to roll in, with the FTSE 100 finishing the day up 22 points at 10,466. The Dow Jones was up 0.8% at an intraday record high, while the Nasdaq and the S&P 500 were up 0.6%.
“Stock markets have continued to drift higher, as we enter the final weeks of a very strong US earnings season,” IG’s chief market analyst Chris Beauchamp said.
“Signs of the rally broadening out beyond tech are the vital next step for the market to retain its bullish outlook, and Dow’s record high ticks that box nicely given tech’s lower weighting in the iconic index.”
UK markets will be closed on Monday in observance of the Spring bank holiday. US markets will also be closed due to Memorial Day.
4.08pm: Headed to the beer garden
The FTSE 100 heads down the final furlong 24 points in the green and nobody cares.
Trading volumes suggest half the City is already two pints deep on a Thames-side terrace, which is fair enough given the bank holiday weekend starts in a few hours.
Still, a 2.8% gain for the week is nothing to sniff at, even if Friday's contribution was strictly decorative.
3.05pm: Footise limps into bank holiday with barely a pulse
The fizz has well and truly gone flat in London, with the FTSE 100 clinging to a gain of just 12 points as traders mentally packed their bags for the long weekend.
Across the Atlantic, it was a different story. The Dow Jones added 0.7% to build on Thursday's record high close, punching above 50,500 for the first time. The S&P 500 rose 0.5% and the Nasdaq climbed 0.6%, with the S&P chasing its longest weekly winning streak since 2023.
Helping the mood on Wall Street was an easing in oil prices and bond yields. Brent crude hovered around $102 a barrel, while the US 10-year yield pulled back to 4.5% and the 30-year retreated to just above 5%. For a market that spent Monday fretting about inflation and rate hikes, that counts as relief.
The US-Iran peace talks remain the swing factor. Thursday's rebound came after Secretary of State Marco Rubio and Iranian media signalled progress on a deal, but clear sticking points remain. Nobody in London wanted to take a view on that with three days of no trading ahead.
The University of Michigan's consumer sentiment and inflation expectations data offered a reminder that war-driven price pressures are still biting.
Not everything was rosy on Wall Street. Campbell Soup shares are now languishing at 30-year lows after a dismal quarter, with consumers pulling back on discretionary snack purchases.
London will find out what it missed when it reopens on Tuesday. For now, the barbecue beckons.
1.24pm: Anthropic heads for the $1 trillion club
We picked this up from the popular prediction site, Polymarket, which set up a market for Anthropic, the artificial intelligence company behind the Claude family of models.
The current betting suggests the soon-to-IPO tech giant will be worth at least $1 trillion by the end of the year, with the latest contract currently showing 93% odds of the company hitting that threshold.
The prediction market data, which shows Anthropic's private valuation at approximately $949 billion as of late May, assigns an 88% probability to the company reaching $1.25 trillion and a 76% chance of hitting $1.5 trillion by 31 December.
At the more ambitious end, there is a 38% chance of a $2 trillion valuation, an 18% probability of $3 trillion and an 8% chance of reaching $5 trillion.
12.30pm: US traders sit on fence
The FTSE 100 added 20 points in thin trading on Friday, though the index had already retreated from its session highs as the City began mentally clocking off ahead of the extended bank holiday weekend.
Volume was light, conviction was lighter. Nobody wants to be the hero who puts on a big position before a three-day break with US-Iran peace talks still hanging in the balance.
Those talks remain the dominant macro driver. Thursday's rebound on both sides of the Atlantic came after Secretary of State Marco Rubio and Iranian media signalled progress on a deal. Markets liked it. But clear sticking points remain, and one headline from Tehran over the weekend could rewrite the mood by Tuesday morning.
On Wall Street, futures were barely moving. The Dow nudged up 0.2%, while the S&P 500 and Nasdaq 100 flatlined. The S&P is chasing its longest weekly winning streak since 2023, which tells you how fast sentiment can flip when geopolitics cooperates.
The week started badly on both sides of the pond, with persistent inflation fears and rate hike jitters doing the damage. By midweek, whispers of an Iran breakthrough had bulls back in charge.
The University of Michigan's consumer sentiment and inflation expectations data landing later on Friday will remind everyone that war-driven price pressures have not gone away.
For London, the real test comes Tuesday. Until then, enjoy the sunshine. If you can find any.
10.50am: Market movers, big and small
Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) shares jumped 15% to 765.8p on Friday, with an unverified UBS price target upgrade to 970p appearing to be the catalyst. South Korean licensee Doosan Fuel Cell surging 25% overnight added further momentum. The shares have now risen more than 970% over the past 12 months, recovering from lows below 60p after partner Bosch walked away in 2024. Read more
Games Workshop Group PLC (LSE:GAW) shares rose 3.1% to 19,640p after the Warhammer maker flagged core revenue of at least £625 million for the year to end-May — up from £565 million a year earlier — with profit before tax expected at no less than £265 million. Licensing revenue is set to come in lower at £30 million versus £52.5 million last year, but Peel Hunt repeated its 'buy' recommendation and 22,000p target, noting the company is "well set for another good year" — albeit on a hefty 33 times forward earnings. Read more
Softcat PLC (LSE:SCT) shares jumped 8% to 1,560p after the IT infrastructure group upgraded its full-year profit outlook, now guiding for mid-teens underlying operating profit growth — up from previous guidance of high single digits. A strong third quarter driven by AI infrastructure demand and broad-based corporate spending was behind the upgrade, with CEO Graham Charlton saying AI is driving "investment and innovation across all elements of IT infrastructure." Read more
Creo Medical Group PLC (AIM:CREO, FRA:1RC, OTC:CMEOF) jumped 27% to 14.44p after the surgical endoscopy specialist unveiled plans to sell its remaining 49% stake in Creo Medical Europe, alongside a £5.5 million placing and upbeat results. Revenue rose 50% in 2025, losses narrowed and management said the combined fundraising and disposal proceeds should carry the business through to profitability over coming years. Read more
Hercules PLC (LSE:HERC) shares jumped nearly 10% to 37.89p after its AIM suspension was lifted following the publication of delayed audited results. The infrastructure group reported record revenue of £121.2 million, up 19%, and a 34% jump in underlying EBITDA to £6.4 million. The results carried a qualified audit opinion linked to historical supplier controls, but the company says it has since strengthened its internal processes. Read more
Arkle Resources PLC (AIM:ARK) climbed 12% to 0.73p after the explorer accelerated drilling plans at its Erongo uranium project in Namibia. Phase 1 surveys identified multiple targets, with drilling set to begin from June 2026. Recent sampling also delivered strong uranium grades, helping fast-track what the company called a growing pipeline of high-priority exploration targets. Read more
10.25: Marking time
The FTSE 100 continues to hover around its opening levels, now 33 points up at 10,476.40. Other European markets are also trading cautiously higher, with Frankfurt's Xetra DAX up 0.4% and the Paris CAC 40 gaining a more moderate 0.1%.
As AJ Bell's Russ Mould puts it: “The market, having been burned before, is not getting too carried away on speculation about a US-Iran peace deal, but the reports did lead to a higher open on Friday."
Mould noted that Brent crude oil prices remain choppy amid claims and counterclaims between Washington and Tehran. Brent crude futures are now 3.2% up at $105.82 a barrel, after falling yesterday.
"Any deal will not restore a pre-war situation overnight, as fully reopening the Strait of Hormuz and getting regional energy infrastructure back on stream will take months," he added.
Meanwhile, he said government bond yields remain elevated to reflect ongoing fears about the inflationary pressures unleashed by the situation in the Middle East, with gilts affected by weak UK retail sales and higher-than-expected government borrowing.
9.10am: Footsie holds onto gains
The London market is still cautiously higher, despite negative news on retail sales and government borrowing.
The UK government borrowed £24.3 billion in April, the highest figure for any April since 2020 and £3.4 billion more than the Office for Budget Responsibility had pencilled in. The overshoot was driven primarily by a sharp rise in spending.
"Headroom is diminishing because bond yields are at multi-decade highs, underlining the jam the government - whoever leads it - finds itself it in," commented Saxo UK's Neil Wilson. "Progress towards resolving Hormuz before the July meeting of the Bank of England now seems to key to avoiding a rate hike - June now looks largely off the table after this week's CPI inflation print came in soft."
Wilson noted that markets are pricing for de-escalation in the Middle East and thumping AI-led earnings growth. The Dow Jones rallied 0.55% yesterday to close at a record high, while there were modest gains for the S&P 500 and Nasdaq, falling just short of their recent peaks. Nvidia slipped despite bumper earnings.
"Traders are hopeful of a deal between the US and Iran. Although Iran’s Supreme Leader reportedly resisted demands to remove enriched uranium from the country, Tehran has said the latest proposal from Washington had helped narrow differences between the two sides, whilst President Trump said he’d be prepared to wait “a couple of days” for a response," Wilson added.
The FTSE 100 is now up 36 points at 10,479.
8.15am: London market perks up
The FTSE 100 opened higher on hopes that the US and Iran are closing in on a deal, although Brent crude futures have jumped above $105 a barrel after Iran's Supreme Leader ordered the country's enriched uranium reserves to remain inside the country, which could scupper any treaty.
Still, London's blue-chip index added 37 points in the first 15 minutes of trading to 10,480.39.
Top of the mover board this morning are Compass Group PLC (LSE:CPG), 3i Group PLC (LSE:III) and BT Group PLC (LSE:BT.A), with gains of 2.3% to 2.6%.
BP PLC (LSE:BP.) is the biggest loser so far, down just over 1%, while Shell PLC (LSE:SHEL, NYSE:SHEL) has shed 0.7%. While oil prices are on the rise again, they are still below the $111 they started the week at.
Utility companies are also under pressure this morning, with Severn Trent PLC (LSE:SVT), United Utilities Group PLC (LSE:UU.) and Centrica PLC (LSE:CNA) all pulling back.
7.55am: Retail sales under pressure
UK retail sales took a knock in April, falling 1.3%, and the main culprit was the petrol pump.
Fuel sales dropped a striking 10.2% during the month, the biggest monthly fall since November 2020, as motorists responded to rising prices by making fewer journeys and putting off filling up. That's a sharp reversal from March, when drivers stocked up in a hurry after conflict broke out in the Middle East. Strip out fuel, and the picture is less dramatic, with sales down just 0.4%.
Clothing had a rough month too, falling 2.4% to its lowest level since June 2025. Retailers blamed unpredictable weather and increasingly price-conscious shoppers - a combination that's hard to sell against.
Online spending dipped 2.3% in April, though it's still up 6.6% compared to a year ago, suggesting the longer-term shift to digital shopping remains firmly intact even if April was a quiet month.
There were some bright spots. Cosmetics and toiletries notched their fourth consecutive month of growth, and computer and telecoms retailers continued to benefit from the product launch boost seen in March.
Zoom out and the picture is more reassuring. Sales volumes rose 0.5% in the three months to April compared with the previous quarter and are 1.1% ahead of the same period last year. The underlying trend, in other words, is still pointing gently upward, even if April itself was one to forget.
7.15am: FTSE 100 set to start higher
London is set for a positive open on Friday, with the FTSE 100 called 36 points higher after a volatile Thursday session that ultimately ended on an optimistic note, with Wall Street closing at record highs on hopes that US-Iran tensions may be easing.
Thursday was a day of sharp mood swings. Markets lurched between gains and losses as traders reacted to a stream of geopolitical headlines, before settling into a more constructive tone late in the session. Swissquote senior analyst Ipek Ozkardeskaya captured the mood well: "As the session progressed, pessimism over Iran turned into optimism — optimism that the gap between the US and Iran may be narrowing. Some officials made very vague comments that met immediate positive reaction. You know the music."
That shift was enough to pull US crude below $100 a barrel and lift sentiment across risk assets. The Dow climbed 0.6% to a fresh record, with the S&P 500 adding 0.2% and the Nasdaq edging 0.1% higher.
The optimism may face an early test, however. Brent crude has climbed back toward $104 a barrel in early Friday trade after reports that Iran's Supreme Leader has ordered the country's enriched uranium reserves to remain inside the country - a significant complication given that dismantling Tehran's nuclear programme remains a central US demand.
Asian markets are brushing off the uncertainty for now. Tokyo's Nikkei has bounced 2.5%, while Hong Kong's Hang Seng is up 1.2%, Shanghai has gained 0.9%, Seoul's Kospi has added 0.6%, and Sydney's ASX 200 closed 0.4% firmer.