London's FTSE 100 Index closed up 28.13 points, or 0.3%, at 10,600.37 on Friday, outperforming global peers as markets were weighed down by technology sector jitters, particularly in semiconductor shares, and ongoing tensions in the Middle East.
Market Performance and Global Context
The FTSE 250 fell 111.00 points (0.5%) to 23,604.83, while the AIM All-Share gave back 6.87 points (0.9%) to 759.31. For the week, the FTSE 100 and FTSE 250 each added 1.0%, though the AIM All-Share lost 0.6%.
In European equities, the CAC 40 in Paris ended down 0.5%, and the DAX 40 in Frankfurt fell 0.3%. In New York, the Dow Jones Industrial Average was down 0.1%, the S&P 500 0.7% lower, and the Nasdaq Composite down 1.3%.
The yield on the US 10-year Treasury narrowed to 4.53% from 4.57% at the time of the London equities close, while the yield on the US 30-year Treasury narrowed to 5.06% from 5.10%.
Analyst Commentary on Market Sentiment
XTB analyst Kathleen Brooks commented on the risk-off sentiment: “It is a risk off end to the week, as the global chip sell-off shows no sign of abating. For now, the sell-off is not turning into a threat to financial markets, and the S&P 500 is only 1% below its all-time high. However, there could be further losses and price action in July suggests that the Q2 rally is now in the rear view mirror.” She added, “Overall, the market thought that Iran/US tensions would stoke volatility. While the geopolitical backdrop is important, it’s the chip stock sell-off that is dominating markets this week, and it still shows no sign of letting up.”
Nvidia and Apple Market Dynamics
Apple briefly unseated Nvidia as the world’s most valuable company before shares in the latter regained some poise. Nvidia had slipped below Apple due to the latest sell-off in semiconductor shares. At the time of the closing bell in London, Nvidia had a market value of around $4.94 trillion, slightly above Apple’s $4.92 trillion. Nvidia was down 1.5%, but had been more than 4% lower earlier on Friday. Apple was up 0.5%.
Commodities and Geopolitical Tensions
Gold was quoted at $4,014.29 an ounce late on Friday afternoon, largely flat from $4,014.58 on Thursday. Brent crude rose to $86.53 a barrel on Friday, up from $84.75 late on Thursday.
The commander of the Aerospace Force in Iran’s Revolutionary Guards vowed on Friday that Tehran would not halt its attacks in the region until the US stopped striking Iran’s southern coastline and the Strait of Hormuz. In a social media post, Majid Mousavi said “Tehran and the south are one and indivisible as Iran,” adding that “effective and targeted strikes from across Iran against the enemy will continue” until attacks on “the southern coastline and the Strait of Hormuz” cease.
Iran’s top negotiator Mohammad Bagher Ghalibaf warned that any deal to end the war “only has meaning when its clauses are valid and being implemented.” White House press secretary Karoline Leavitt told reporters on Thursday that US President Donald Trump would hold Iran “accountable” for going back on its word, but said “he is always open to diplomacy at the very same time.” Trump previously threatened to hit Iranian power plants and bridges unless Tehran returned to the negotiating table, telling Fox News: “Next week it gets really bad for them.”
Currency Movements
The pound was quoted at $1.3453 on Friday, higher than $1.3431 at the London equities close on Thursday. Against the euro, sterling traded at €1.1753, down from €1.1791. The euro stood lower at $1.1441, compared with $1.1444, while the dollar eased fractionally to ¥162.37 from ¥162.39.
Political Developments: Andy Burnham Becomes Labour Leader
Andy Burnham officially became the party’s new leader, vowing to give people “hope back” and “the Labour they once knew.” He said he is “ready to lead” as he took the governing party’s reins at a special conference at the Trades Union Congress headquarters in central London on Friday, the final step before replacing Sir Keir Starmer as UK prime minister next week. In his acceptance speech, Burnham said he would offer “hope” and that the Labour movement which backed him “heard the call from the people of Makerfield on behalf of forgotten places everywhere up and down this country for a return of the Labour they once knew.”
FTSE 100 Sector Performance: Utility Stocks Climb
On the up in London, utility shares climbed. National Grid added 3.3%, Severn Trent rose 2.9%, and SSE climbed 2.4%.
Burberry was the worst large-cap performer, sinking 6.4%. AJ Bell analyst Russ Mould said, “Burberry looked primed to strut its stuff based on one of its best quarters in years, but a cautious outlook and weak showing in certain markets saw the shares trip up.” Burberry said it is “mindful of the uncertain geopolitical and macro-economic environment.” The London-based luxury retailer reported retail revenue rose 5.1% to £455 million in the 13 weeks to June 27 from £433 million a year earlier, or 4% at constant exchange rates.
Aston Martin Lagonda Global shares declined 2.4%. The firm said it regularly considers the company’s capital structure. The Gaydon-based luxury sports car maker said this includes strategic options, such as ongoing discussions with potential financing providers. Aston Martin said: “The group’s focus remains on executing its strategy, building on the positive momentum in Q1 2026 and delivering the material improvement in financial performance expected in FY 2026, whilst ensuring sufficient liquidity to enable this.” Bloomberg News on Friday reported that Aston Martin is in talks with lenders including BlackRock Inc-owned HPS Investment Partners on raising additional funds.
Smiths News shares perked up 4.5%. It announced that it has secured new long-term contracts, which it said further reinforced its long-term partnership with publishers and distributors. The Swindon-based newspaper wholesaler said the contracts are with Frontline Ltd, which it said is the UK’s largest magazine distributor, and Seymour Distribution Ltd, part of the Frontline Group and the UK’s largest independent magazine distributor.
FTSE 100 Risers and Fallers
The biggest risers on the FTSE 100 were National Grid up 40.5p at 1,257p, British American Tobacco up 134p at 4,669p, Severn Trent up 86p at 3,066p, BAE Systems up 46p at 1,880p, and SSE up 59p at 2,488p.
The biggest fallers on the FTSE 100 were Burberry down 71.5p at 1,049p, Scottish Mortgage Investment Trust down 50.5p at 1,359p, Autotrader down 18.1p at 498.3p, Polar Capital Technology Trust down 18.5p at 627.5p, and Antofagasta down 97p at 3,491p.
Upcoming Economic Events
Monday’s economic events calendar has a German producer price index release at 0700 BST. The corporate calendar has first-quarter results from Ryanair.
