- FTSE 100 up 87 points at 10,695
- Wall Street opens higher after CPI meets forecasts
- Gold rises as Brent falls on easing supply concerns
- Treasury yields retreat after initial CPI-driven rise
3:00pm: Going from strength to strength
The FTSE 100 has steadily strengthened through the afternoon, rising 87 points to 10,695 after starting the day just 6 points higher.
Global market reaction to the CPI is mixed so far. US consumer prices rose 0.4% last month.
Wall Street opened higher.
Dow Jones opened at 52,204.46, up 140.4 points or 0.27%.
S&P 500: 7,636.75, up 45.1 points or 0.59%.
Nasdaq Composite opened at 26,289.414, up 207.7 points or 0.80%.
But markets remain cautious despite the positive open.
Treasury bonds rallied after the CPI release, with the two-year yield at 4.594% after earlier rising 8.8 basis points, while the 10-year yield fell to 4.92% after briefly hitting 4.98%, its highest level in three years, which is a cause for concern.
COMEX copper futures were broadly flat at $6.47 a pound, up 0.04%.
US futures held gains after CPI.
Gold spot rose 0.65% to $4,394.26 an ounce, extending earlier gains on Friday.
Brent crude fell 2.81% to $104.61 a barrel, retreating from Thursday’s surge as hopes of a temporary deal to ease shipping through the Strait of Hormuz eased supply concerns.
2:00pm: UK shares going strong
The much-awaited US inflation report released this afternoon showed consumer prices rose 0.4% in August, after rising 0.1% in July and matching forecasts, while annual inflation reached 3.4%.
The FTSE 100 is up 74 points at 10,683, holding firm gains as investors digest the latest US inflation data.
Brent November futures around $107.74 a barrel, down 1.1%.
US futures rise after CPI meets expectations.
Gold spot rises to $4,359.85 after US inflation data was released.
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1:00pm: London holds gains
The FTSE 100 is on course to snap a five-day losing streak.
The footsie rose 63 points to 10,672.
The turnaround today is being driven by a retreat in Brent crude prices amid tentative hopes of a deal to ease shipping restrictions through the Strait of Hormuz, alongside UK GDP data showing 0.4% growth in July.
European shares have given up their early gains.
Brent crude retreated nearly 2% to $105.90 a barrel on Friday after reaching a four-month high of $109.97 in the previous session, but remained on course for a weekly gain of about 10%.
US futures are on a rebound, with Dow, S&P 500 and Nasdaq 100 contracts all up around 0.5% ahead of US CPI data.
Britain’s electricity grid faces delays to vital upgrades that could push up costs for consumers, the National Audit Office warned.
Reuters report said Ofgem estimates £70 billion is needed to improve the transmission network between 2025 and 2031.
Of 88 projects deemed necessary by 2030, 64 remain at an early stage and are not expected to meet their deadlines.
National Grid PLC (LSE:NG.) shares are rising despite Ofgem’s warning, suggesting investors have so far looked past the concerns, with the stock up 8.5p at 1,137p.
Shell PLC (LSE:SHEL, NYSE:SHEL) shares are up 2.5p, or 0.07%, at 3,535.5p, after trading between 3,500p and 3,544.5p.
The International Energy Agency expects global oil supply and demand to fall more sharply than previously forecast, as stalled efforts to end the Iran war delay the return of normal Middle East oil flows into 2027.
Italy is moving to increase domestic oil and gas output as the government seeks to reduce reliance on imports.
Prime Minister Giorgia Meloni said on Thursday that new measures would cut bureaucracy around exploration and production licences.
Berkeley Group Holdings PLC (LSE:BKG) has called for urgent changes to stamp duty, arguing that the tax has become a major obstacle for both housebuilders and potential buyers.
The FTSE 250 housebuilder said the tax has contributed to weaker demand for new homes by making purchases less affordable for first-time buyers and discouraging existing homeowners from moving.
Berkeley Group shares are broadly flat at 3,296p, up 2p or 0.06%, after trading between 3,220p and 3,314p.
Oracle shares climbed over 6% in premarket trading on Friday after better-than-expected quarterly results helped ease concerns over its heavy borrowing to fund AI and cloud expansion.
Sterling was around $1.352, little changed after stronger-than-expected UK GDP data.
12.00pm: London edges higher
The FTSE 100 rose 65 points to 10,674.
Wall Street is set for a positive open, with Dow, S&P 500 and Nasdaq futures each up around 0.6% ahead of US inflation figures.
11.00 am: Small caps and AIM join London advance
The FTSE SmallCap advanced 12 points to 8,050, while the FTSE 250 climbed 85 points to 23,971.
AIM markets also moved higher. The AIM UK 50 gained 31 points to 4,178, the AIM 100 added 10 points to 3,664, and the AIM All-Share rose one point to 789.
C&C Group topped the small-cap risers, climbing 9% to 97p after agreeing to acquire Asahi UK’s wholesale businesses at nominal cost.
10.00 am: Financial stocks gather momentum
The FTSE 100 climbed 49 points to a session high of 10,658, strengthening around 42 points from the 9 am snapshot as financial shares gathered momentum.
Standard Life advanced 1.7%, Lion Finance gained 1.5%, and Barclays rose 1.3%. The UK’s stronger-than-expected economic growth eased near-term slowdown concerns while keeping interest-rate expectations firm, a potentially supportive combination for financial earnings.
Rightmove topped the index with a 2.1% gain, while British American Tobacco added 1.9%.
BP fell 1.1% as Brent crude retreated following Thursday’s surge. Sage, Compass Group and London Stock Exchange Group declined around 1.5%, but their losses were insufficient to halt the wider advance.
9.00 am: London holds near flatline
The FTSE 100 was 7 points higher at 10,616 as gains among tobacco and banking shares offset losses across data and technology-linked companies.
British American Tobacco led the risers, gaining 1.2%, while Lion Finance, NatWest, Standard Life and Barclays advanced around 1%.
RELX fell 2.4%, followed by Compass Group, Sage, London Stock Exchange Group and Experian. Antofagasta and Glencore also declined.
The FTSE 250 added 8 points to 23,894, while AIM gained 1 point to 789.
The market remained cautious despite July’s stronger GDP reading. Brent crude retreated 2.3% to $105.14 after Thursday’s surge, while sterling held near $1.351.
8.05 am: FTSE 100 opens higher as UK growth surprises
The FTSE 100 opened modestly higher on Friday after fresh figures showed the UK economy grew much faster than expected in July, though the blue-chip index quickly gave back most of its early gains.
London’s leading index was 6 points higher at 10,615 shortly after the open, having started the session at 10,636.
The index touched an early high of 10,636, compared with Thursday’s close of 10,608, before slipping back.
UK gross domestic product rose 0.4% in July, following growth of 0.3% in June and comfortably beating City expectations for a flat reading.
Global markets have also been under pressure from higher bond yields, with investors increasingly focused on how central banks may respond if energy-driven inflation proves persistent.
The FTSE 100 enters Friday after a weak run, with the index still under pressure from the recent sell-off despite the firmer start to the session.
7.00 am: Surprise GDP growth supports London
The FTSE 100 is expected to open 17 points higher at 10,625 after the UK economy expanded much faster than economists anticipated in July.
Gross domestic product increased 0.4% month on month, improving from June’s 0.3% rise and beating forecasts for no growth.
Services output increased 0.4%, led by administrative and support services, information and communication. Wholesale and retail trade provided the largest drag.
The reading provides a boost for Chancellor John Healey ahead of the 28 October Budget, although rising oil prices and government borrowing costs continue to cloud the outlook.
London’s blue-chip index closed 61 points lower at 10,609 on Thursday, marking its fifth consecutive decline. The modestly positive opening call suggests the stronger GDP figures could help interrupt that run.
Brent crude remained above $105 a barrel following further disruption and military activity around the Strait of Hormuz. The elevated price may support BP and Shell but threatens to fuel inflation and increase pressure on the Bank of England to raise interest rates.
Asian markets weakened following Wall Street’s fourth consecutive decline. Australia’s ASX 200 closed around 1.5% lower at 8,688, its weakest level in almost two months, while Japan’s Nikkei 225 finished approximately 2.3% lower near 63,803.
South Korea, mainland China and Hong Kong remained open and were also trading lower.
On Wall Street, the Dow Jones fell 317 points to 52,064, while the S&P 500 lost 0.6% and the Nasdaq declined 0.7%. Hotter producer-price inflation and rising Treasury yields unsettled investors ahead of today’s US consumer-price report.
Sterling traded around $1.3513, while gold stood near $4,406 an ounce, copper was around $6.48 per pound, and Bitcoin hovered close to $77,100.
On the corporate calendar, Berkeley Group is due to issue a trading update, while Integrated Diagnostics Holdings publishes half-year results.
