- FTSE 100 down 16 points at 10,409
- US stocks set to edge higher
- Wickes and B&M downgraded
- Ocado advances 13% on Asda deal
- Brent crude falls amid Iran peace hopes
5.29pm: FTSE slips
London stocks finished the day slightly lower and oil prices fell as investors held off making any major moves as the US and Iran move towards a peace deal that could reopen the Strait of Hormuz. The FTSE fell 16 points to 10,409.
“Both Brent and WTI - trading in the $90 per barrel region - are set for a monthly drop amid hopes of the Strait of Hormuz re-opening in early June,” IG chief technical analyst Axel Rudolph said.
"With markets expecting the situation in the Middle East to de-escalate and the Strait of Hormuz to re-open next month, investors will focus on the US labour market, factory orders, manufacturing and services data for further insight into the strength of the US economy, potentially shaping expectations around the future path of Federal Reserve policy."
3.54pm: Back in the green
After dipping its toe into the red (briefly), the UK's top stocks index scraped back over the gain line as it ambled its way towards the week's close. In four trading days, it's been rudderless and looks set to end more or less where it started. AIM, by contrast, has enjoyed a stellar week with a 3.2% rise, reflecting a more risk-off attitude. But will it last?
2.53: Reverse gear
UK stocks gave back earlier gains to trade just below flat on Friday, as investors weighed progress on Iran ceasefire talks against a backdrop of persistent uncertainty over global energy supplies.
The FTSE 100 slipped into negative territory after a positive open, with sentiment dampened by the absence of any official confirmation of a deal despite reports that a ceasefire extension proposal had reached President Trump's desk.
In the US, markets edged modestly higher, with the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite each gaining around 0.2%, extending a run that has taken the S&P 500 and Nasdaq to record highs on three consecutive sessions this week.
The gains were underpinned by continued confidence in the AI trade and cautious optimism over Iran negotiations, after Trump signalled last week that talks were in their final stages.
After the closing bell, Dell Technologies provided a significant boost to sentiment, with the computer and server maker reporting quarterly results that comfortably exceeded expectations and issuing an upbeat outlook for data centre demand driven by the AI buildout.
Dell's shares surged as much as 40% in after-hours trading, reflecting investor enthusiasm for its server business, which runs on chips made by Nvidia and has become a key beneficiary of corporate spending on AI infrastructure.
Markets remain alert to any official development on Iran, with the closure of the Strait of Hormuz continuing to drive energy price rises and complicating the Federal Reserve's calculations on interest rates.
1.30pm: Don't hold your breath
Reports of an imminent ceasefire in the Iran conflict are running well ahead of reality, RBC Capital Markets has warned, as global oil inventories continue to drain at a pace that may be more severe than headline figures suggest.
The bank's commodity strategy team says that despite widespread speculation about a 60-day memorandum of understanding (MOU) that would reopen the Strait of Hormuz to unrestricted navigation, the situation on the ground remains deeply uncertain.
US forces intercepted four Iranian drones in the Strait on Thursday and conducted strikes on Iranian military positions near Bandar Abbas, marking the three-month anniversary of the conflict with yet another exchange of fire.
RBC cautions that even if a temporary MOU is agreed, traffic through the waterway would be largely one-directional and complicated by soaring insurance rates, the legal difficulties of coordinating with entities subject to US sanctions, and the reluctance of Western shipping companies to transit a waterway where the threat of missiles, drones and mines remains live.
Midday: Tentative progress
The FTSE 100 is up around 30 points on light volumes this Friday morning, on course to end the week roughly where it started as traders sit on their hands ahead of the weekend.
US stock futures edged higher this morning as Wall Street digested a blowout earnings report from Dell and kept one eye on the latest twists in the US-Iran negotiations.
Dell was the star of the show after the close, with its shares rocketing nearly 40% after the technology giant beat expectations and issued an upbeat outlook, pointing to surging demand for its Nvidia-powered servers as the AI data centre buildout rolls on.
The S&P 500 and Nasdaq both hit record highs for the third consecutive session, with the AI trade and cautious optimism around a potential Iran deal keeping sentiment buoyant.
On that front, oil told an interesting story. Brent crude slipped below $93 a barrel, on track for its biggest monthly drop since 2020, after reports emerged that the US and Iran had tentatively agreed to extend their ceasefire by 60 days, with shipping through the Strait of Hormuz potentially set to resume unrestricted.
Markets have been watching the strait closely, given that its effective closure has cut off millions of barrels of daily supply and stoked inflation fears that complicate the Federal Reserve's thinking on interest rates.
The catch is that nothing is signed yet. President Trump has not formally agreed to the terms, and Vice President JD Vance said it was too early to know "when or if" a deal would materialise.
10.44am: Deutsche gets out the red pen
The German bank has downgraded B&M European Value Retail and Wickes from 'hold' to 'sell', cutting price targets sharply as inflationary headwinds threaten to test consumer spending and retailer margins more severely.
B&M's target was cut from 175p to 155p, while Wickes Group saw its target slashed from 235p to 165p, reflecting analyst Adam Cochrane's concern about the timing and intensity of upcoming demand erosion.
The core debate in UK retail centres on whether the sector is currently in the "calm before the storm" regarding inflation's impact on consumer spending and retailer profitability, or whether consensus is overblowing risks in what Cochrane characterises as a "storm in a teacup".
Consumer confidence has weakened sequentially since March, and April retail spending slowed, yet inflation pressures remain muted outside petrol pump prices.
The 2026 environment differs materially from 2022's crisis, Cochrane argued, with retailers better hedged against energy costs and supply chain disruption contained.
Freight costs remain manageable and the consumer shock appears less acute than previously feared.
Deutsche Bank also downgraded Currys from 'buy' to 'hold', reducing its target from 155p to 150p, signalling tempered conviction on the electricals retailer's recovery trajectory.
9.15: Happy shopper
Ocado shares jumped 13% to 235p after announcing a partnership with Asda to overhaul the supermarket chain's ecommerce infrastructure, marking the first significant UK client win in years for the technology provider.
Broker Peel Hunt said the deal "ticks a lot of boxes" for investors concerned about Ocado's ability to secure new contracts after a prolonged period of negative sentiment.
The partnership represents Ocado's first substantial entry into the UK online grocery market, a sector it has been unable to penetrate significantly because its domestic customer, Ocado.com, already uses its technology.
Asda, the UK's third-largest supermarket by market share with 11.5% of the sector, generated more than £21 billion in sales in 2025 and currently processes over 700,000 ecommerce orders each week across its store and dark store network.
Ocado will deploy its Smart Platform across Asda's entire ecommerce operation from early 2027, including front-end webshop technology, in-store fulfilment systems, and software for last-mile delivery optimisation.
8.15am: UK ignores the hype
As predicted, UK blue-chips opened with zero fanfare, ignoring the exuberant out-of-hours performances of Wall Street and Asian markets.
Here at home, corporate news was at a premium with Ocoado's deal to automate Asda's home delivery service probably the pick of the headlines on Friday. Ocado shares were up 9% early on.
Outside of this, Brent nudged lower and is in line for a second loss-making week amid hopes that the Strait of Hormuz may be opened under an outline pact being touted by US Vice President JD Vance.
Muted start expected
The FTSE 100 looks set for a subdued start to Friday's trading despite a sharply positive session across Asian markets, where technology shares tracked Wall Street's record highs and reports of progress in US-Iran ceasefire talks lifted sentiment.
Japan's Nikkei 225 jumped nearly 2.7% to a fresh all-time high of 66,449 points, while South Korea's KOSPI surged 3.1% to record levels, powered by gains in semiconductor and artificial intelligence-linked shares.
Asian technology stocks took their cue from Wall Street, where the S&P 500 and Nasdaq Composite both posted record closing highs on Thursday, driven by strong performance from AI-related companies.
Investor appetite for risk was further supported by reports that Washington and Tehran had reached a draft agreement to extend their ceasefire for another 60 days, easing fears over potential disruption to oil supplies through the Strait of Hormuz.
The proposed agreement still requires approval from US President Donald Trump, and Iranian media said the framework had not yet been finalised.
Oil prices fell for a second straight session, with Brent crude heading for its steepest weekly decline in nearly two months.
Caution persisted after US inflation data showed the personal consumption expenditures price index, the Federal Reserve's preferred measure, rose at its fastest annual pace in three years in April.