- FTSE 100 up 2 points at 10,825
- Wall Street opens in the green
- Bitcoin surges 10% to more than $79,000
- Miners well bid
3,31pm: Footsie rides the Wall Street wave to a late London lift
The Footsie surged after the US open to chalk a 77-point advance in the final hour before London's close.
The push came courtesy of Wall Street, where stocks opened higher on Friday as bond markets steadied and bitcoin went on a tear.
The Dow rose 0.5%, with the S&P 500 and the tech-heavy Nasdaq both up around 0.4% in early New York trade.
Bitcoin stole the show, jumping 7% to $77,000 and heading for its best week in nearly three years.
That crypto rally rippled out to digital exchange stocks, giving the risk-on mood an extra shove.
The backdrop this week has been anything but calm. A bond sell-off had piled pressure on capital-hungry AI and tech names, with the likes of Nvidia and SpaceX feeling the squeeze.
Treasury Secretary Scott Bessent tried to soothe nerves on Thursday, pledging to expand the government's bond buyback programme beyond $4 billion an issue.
His argument was that yields had drifted higher than the fundamentals warranted.
The relief was fleeting. Ten-year and 30-year Treasury yields snapped straight back to their earlier highs, leaving traders to conclude the fix was a sticking plaster.
Now attention turns to Monday, when Bessent fronts a press conference to spell out Washington's plan to economically isolate Iran.
Trump has already threatened "tremendous economic consequences" for any country still trading with Tehran, a warning aimed squarely at China and its appetite for Gulf oil.
Next week brings its own fireworks, with the Federal Reserve's Jackson Hole gathering and Nvidia's second-quarter results both on the slate.
Before then, fresh purchasing managers' surveys will offer a health check on manufacturing and services on both sides of the Atlantic.
For now, London is happy enough to hitch a ride on New York's coat-tails and bank a cheerful finish to the week.
1.37pm: Footsie holds its nerve as Trump sharpens Iran squeeze
London was treading water on Friday afternoon, with the FTSE 100 up 22 points and traders keeping half an eye on Washington.
Investors are waiting to hear how President Trump plans to wage what he is billing as "economic warfare" on Iran, and the US Treasury's bigger bond buyback push has done little to steady nerves.
Across the Atlantic, Wall Street is heading for weekly losses after a bond sell-off battered capital-hungry AI and tech names such as Nvidia.
Treasury secretary Scott Bessent tried to soothe things on Thursday, unveiling plans to expand buybacks beyond $4 billion per issue and insisting yields don't reflect the underlying fundamentals.
The calm lasted about five minutes.
Ten-year and 30-year Treasury yields snapped straight back to their earlier highs, with markets dismissing the move as a sticking plaster.
Trump has already threatened "TREMENDOUS Economic Consequences" for anyone still trading with Iran, a warning aimed squarely at China and its thirst for Gulf oil.
Bitcoin, for its part, is having a whale of a time, pushing towards $77,000 and eyeing its best week in almost three years.
The next flashpoint is Bessent's Monday press conference, where he will spell out exactly how Washington intends to isolate Tehran.
12.31pm: Miners in demand
Mining companies dominated the FTSE 100 risers board on Friday, as gold traded above $4,500 an ounce and copper held near record levels.
Antofagasta, the Chilean copper producer, led the blue-chip index with a gain of 4% to 3,864p.
Fresnillo, the Mexican silver and gold miner, rose 3% to 3,273.5p, while Anglo American, the diversified miner, also added 3% to 4,076.5p.
Endeavour Mining, the West Africa-focused gold producer, climbed 3% to 4,614p, and Glencore, the mining and commodity trading group, gained 2% to 598.65p.
The rally followed a sharp move higher in gold after the US Treasury said it would at least double its long-term debt buybacks, purchases of its own bonds intended to contain government borrowing costs.
The announcement sent US government bond yields and the dollar sharply lower.
A weaker dollar tends to lift precious metals, which are priced in the currency and become cheaper for overseas buyers when it falls.
Gold is regarded as a safe-haven asset, drawing investors during periods of market and political stress.
Demand has been reinforced by volatility across currency and bond markets and by rising oil prices, which point to persistent inflation.
The metal is now up around 10% over the past month and is heading for a third consecutive weekly gain.
Copper has added further support, having touched record highs above $14,000 a tonne earlier in August.
A supply squeeze on the London Metal Exchange and expected output cuts in Chile, the world's largest producer, have kept the metal elevated.
Firmer silver prices have aided Fresnillo, while Endeavour has benefited directly from the strength in gold.
Attention now turns to next week's Jackson Hole symposium, where Federal Reserve chair Kevin Warsh is due to speak on the outlook for interest rates.
11.30 am: Bitcoin surges 8% as London loses momentum
Bitcoin surged more than 8% to around $78,150 on Friday, putting the cryptocurrency on course for its strongest weekly advance since March 2024.
The world’s largest digital asset reached an intraday high of $79,194, having traded below $64,000 earlier in the week. It has now gained approximately 20% over the past 5 sessions.
The rally has been supported by several developments in the US. President Donald Trump urged lawmakers to advance the Clarity Act, which would establish a clearer federal regulatory framework for digital assets, while institutional demand through spot Bitcoin exchange-traded funds has strengthened.
The US Treasury’s decision to expand its purchases of longer-dated government debt also boosted sentiment. Although the move does not constitute quantitative easing, investors initially interpreted it as supportive of market liquidity and potentially lower borrowing costs.
Short covering then accelerated the advance. More than $4 billion of bearish cryptocurrency positions have reportedly been liquidated over the past 2 days, including around $1 billion on Friday. That figure covers the broader cryptocurrency market rather than Bitcoin alone.
Sentiment in London was considerably more restrained. The FTSE 100 surrendered an earlier 38-point gain to trade broadly flat at 10,749, after reaching 10,787 during the morning.
JD Sports Fashion and Antofagasta remained approximately 6.3% higher, with Endeavour Mining, Anglo American, Fresnillo and Glencore also advancing.
However, losses among several large healthcare and information-services companies offset those gains. Experian fell 2.3%, GSK declined 2.1% and Smith & Nephew dropped 2%, while RELX and AstraZeneca were around 1% lower.
The wider London market remained positive, suggesting sentiment was mixed rather than broadly risk-off. The FTSE 250 added 0.3% and the AIM All-Share rose 0.6%.
10.30 am: eEnergy drops as payment delays prompt new borrowing
eEnergy Group PLC shares fell 20% to 2p after delays in collecting approximately £3.2 million for completed work prompted the company to arrange additional short-term funding.
The AIM-listed energy-services group said all 65 sites covered by its Mace project were operational and energised, but payments remained outstanding because of incomplete paperwork, principally relating to solar installations.
The company expects the documentation process to be finalised over the coming months.
To support working capital in the meantime, eEnergy extended the repayment date on an existing £500,000 secured loan from Harwood Holdco from November 2026 to February 2027. Interest will continue to accrue at 1% per month.
It also secured a further £500,000 loan from former director and current shareholder Nigel Burton. The new facility carries interest of 1% per month, along with a 1% arrangement fee, and is repayable by February 2027.
9:30 am: Miners and JD Sports lead gains as UK business activity strengthens
The FTSE 100 strengthened during the morning session, adding around 34 points, or 0.3%, to trade near 10,782 after reaching an intraday high of 10,787.
The advance was supported by mining shares, although gains extended into retail and financial stocks.
Antofagasta led the index with a rise of more than 5%, while Fresnillo advanced 3.8%, Endeavour Mining gained 3% and Anglo American and Glencore added 2.8% and 2.5% respectively. Rio Tinto was around 1.1% higher.
The sector benefited from stronger metals prices and a softer US dollar. Copper rose around 1.5%, while gold and silver gained approximately 1% and 1.8% respectively.
JD Sports was the most prominent non-mining mover, rebounding around 4.6% after falling more than 14% on Thursday. The recovery followed the sportswear retailer’s profit warning and £50 million reduction to its full-year guidance, rather than a fresh company announcement.
Financial stocks also contributed to the positive breadth. Prudential gained around 1.7%, HSBC rose 1.4% and St James’s Place, Standard Chartered and Barclays were all higher.
The gains came as the flash S&P Global/CIPS UK composite PMI increased to 52.5 in August from 52.2 in July. A reading above 50 indicates expanding private-sector activity, suggesting the economy maintained modest momentum despite weaker retail sales and continuing pressure from elevated energy costs.
At the other end of the index, Experian dropped around 2.1%, making it the leading faller. Smith & Nephew declined 1.9% as investors continued to digest the departure of finance chief John Rogers, while GSK lost 1.6%. RELX and AstraZeneca were also lower, leaving healthcare and information-services companies as the principal counterweight to the mining rally.
Hunting PLC (LSE:HTG) (Hunting PLC (LSE:HTG)) emerged as the standout London faller on Friday, tumbling around 15% tracking as low as 380p earlier in the session.
Sterling remained close to $1.364, while the UK 10-year gilt yield was around 5.06%. Brent crude eased slightly to approximately $93.30 a barrel but remained elevated as the US-Iran standoff continued to sustain concerns over energy supplies.
8:35 am: London nudges higher as retail sales fall
The FTSE 100 made a restrained but positive start to Friday’s session, advancing around 12 points, or 0.1%, to trade near 10,760 during the opening exchanges.
Investors were assessing a mixed set of domestic figures. Office for National Statistics data showed retail sales volumes fell 0.5% in July, while June’s increase was revised down to 0.7% from 1%.
The underlying picture was less severe than the headline decline suggested. Sales increased 1.1% across the three months to July, while volumes were 1.6% higher than a year earlier.
Non-food and online retailers recorded weaker demand after promotions brought some spending forward into June. Food-store sales rose, however, as hot weather and the football World Cup supported purchases of drinks and other refreshments.
Separate public-finance figures offered little encouragement. The government borrowed £1.8 billion in July, £2.3 billion more than forecast by the Office for Budget Responsibility. Borrowing since the beginning of the financial year reached £56.7 billion, while public-sector net debt stood at £2.98 trillion, equivalent to 94.1% of GDP.
The deterioration comes as higher bond yields raise the cost of servicing the UK’s substantial debt pile, potentially limiting Healey's room for additional spending or tax cuts.
Healey, who was appointed Chancellor of the Exchequer on 20 July, has said fiscal discipline will remain central to the government’s approach.
“Fiscal discipline is the bedrock of our UK economic stability and national security,” he said in response to the July figures, reiterating the government’s commitment to meeting its fiscal rules while maintaining a buffer against global uncertainty.
Oil remained an important source of support for London’s commodity-heavy index. Brent crude was trading around $93.40 a barrel, easing slightly after five consecutive gains but remaining elevated as the US-Iran standoff and the threat of further sanctions kept supply risks in focus.
BP gained around 0.3% in early trading, helping cushion the wider market against the weaker consumer and fiscal data.
Attention now turns to eurozone business-activity figures at 9am, followed by the UK flash purchasing managers’ index at 9:30am. The latter could influence sterling and expectations for the Bank of England’s next move.
7:15 am: Iran escalation returns oil and inflation risks to focus
The FTSE 100 faces a cautious start after the United States announced a sharp escalation in its economic campaign against Iran following the breakdown of negotiations over reopening the Strait of Hormuz.
President Donald Trump has threatened what he described as an “economic D-Day”, with measures expected to target Iranian oil sales, financial transactions and the networks used to circumvent existing restrictions.
US Treasury Secretary Scott Bessent said the next phase could include secondary sanctions against countries and companies that continue trading with Iran. Such measures could affect major buyers of Iranian oil, including China and India, and potentially widen the dispute beyond the Middle East. Associated Press
The escalation follows the failure of negotiations aimed at restoring shipping through the Strait of Hormuz, which handled roughly 20% of internationally traded oil before the conflict. The United Arab Emirates has also suspended trade with Iran following an alleged missile attack, which Tehran has denied.
Oil prices initially jumped more than 3%, taking Brent crude above $94 a barrel, before easing to around $93.37 early on Friday.
Elevated oil prices could support FTSE 100 heavyweights BP and Shell at the open. However, the wider implications are less favourable, with higher energy costs adding to inflation concerns and potentially weighing on airlines, retailers and other consumer-facing companies.
September FTSE 100 futures remained broadly unchanged at 10,784.5 shortly before 7:00am, while London’s cash index closed Thursday at 10,748.16.
