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The FTSE 100 pulled back from a fresh intraday record on Friday as caution ahead of US-Russia peace talks, fresh tariff warnings from Washington, and weaker US consumer sentiment weighed on markets. The FTSE 100 index closed down 38.34 points, 0.4%, at 9,138.90. It had earlier reached an all-time intra-day high of 9,222.07. The FTSE 250 ended down 43.43 points, 0.2%, at 21,758.24, and the AIM All-Share finished 0.86 of a point higher, 0.1%, at 759.80. For the week, the FTSE 100 rose 0.5%, the FTSE 250 fell 0.9% and the AIM-All Share declined 0.3%. The Cboe UK 100 ended down 0.3% at 916.31, the Cboe UK 250 closed down 0.4% at 19,131.30, and the Cboe Small Companies rose 0.2% to 17,070.72. In Europe, the CAC 40 in Paris rose 0.7%, while the DAX 40 in Frankfurt closed down slightly. US President Donald Trump and Russian counterpart Vladimir Putin will meet later Friday in Alaska in a summit that could prove decisive for the future of Ukraine. Putin will step onto Western soil for the first time since he ordered the invasion of Ukraine in February 2022. Trump extended the invitation at the Russian leader’s suggestion, but the US president has since warned that the meeting could be over within minutes if Putin does not compromise. Speaking to reporters aboard Air Force One en route to Anchorage, Trump sounded a more positive note. ‘There’s a good respect level on both sides and I think something’s going to come out of it,’ he said. ‘Investors will be watching closely for signs a credible peace deal is in the offing and any outcomes could set the mood music for next week,’ said AJ Bell investment director Russ Mould. Trump also said he will be setting new tariffs on steel, semiconductors and computer chips from next week, though he declined to say what rate would apply, according to AFP. The US president said he would keep the new levies ‘lower at the beginning’ to give companies ‘a chance to come in and build’ in the US. ‘And if they don’t build here, they have to pay a very high tariff, which doesn’t work. So they’ll come and build,’ he explained. In New York, the Dow Jones Industrial Average was up 0.1%, the S&P 500 was 0.2% lower, and the Nasdaq Composite dropped 0.4%. Figures showed US retail sales growth decelerated in July, although the number was in line with hopes. The US Census Bureau said retail sales grew 0.5% monthly in July from June, when they had grown 0.9%, the latter of which was upwardly revised from 0.6% growth. ‘Concern about tariff-induced price hikes and worries about the prospect for the jobs market do appear to be causing a slowing in spending growth, but there is little sign of any recession threat right now,’ said ING. But separate data from the University of Michigan showed the preliminary August sentiment index fell to 58.6 from 61.7 a month earlier. FX Street consensus had forecast an improvement to 62.0. The report showed US consumers are scaling back spending plans amid concerns about inflation and weakening job prospects. The pound climbed to $1.3566 late on Friday afternoon in London, compared to $1.3541 at the equities close on Thursday. The euro firmed to $1.1712, higher against $1.1650. Against the yen, the dollar was trading lower at JP¥146.90 compared to JP¥147.72. The yield on the US 10-year Treasury was at 4.31%, widened from 4.28%. The yield on the US 30-year Treasury was 4.90%, stretched from 4.87%. Emmanuel Cau at Barclays sees Federal Reserve Chair Jerome Powell’s speech at Jackson Hole next Friday as the main risk to equities in the near-term. ‘While we agree markets may have a good reason to believe the Fed’s next move will be a cut given the relentless pressure from the Trump administration, we would not take the current ultra dovish pricing for granted,’ Cau wrote. ‘Powell’s speech at Jackson Hole next week will be closely watched, as his guidance about the Fed rates trajectory may challenge current market pricing,’ he added. ‘Of course, if Powell were to endorse current market expectations, it is hard to see what would stop the party for equities and further broadening, unless growth data provide a justification,’ Cau stated. On the FTSE 100, mining stocks rose despite weak data from China. Anglo American rose 2.1%, Glencore climbed 1.8% and Antofagasta 1.2% on hopes the soft figures will spark action from Chinese authorities. ‘Chinese economic activity slowed across the board in July, with retail sales, fixed asset investment, and value added of industry growth all reaching the lowest levels of the year,’ ING said. ‘After a strong start, several months of cooling momentum suggest that the economy may need further policy support,’ the broker added. But Asia-focused bank Standard Chartered slumped 7.2% after a US politician asked the country’s attorney general to probe the bank. Republican Elise Stefanik, in a post on X, said she has asked US Attorney General Pam Bondi to investigate the bank for ‘illicit payments to known terrorists.’ Stefanik shared a letter on X, in which she alleged Standard Chartered had made $9.6 billion from such payments. ‘China has been using Standard Chartered to purchase sanctioned Iranian oil’, she claimed. On a quiet day for company news, Associated British Foods ended up 0.2% after confirming the acquisition of Hovis Group from private equity firm Endless. AB Foods plans to combine Hovis with its existing Allied Bakeries division to create a ‘profitable UK bread business that is sustainable over the long term.’ Allied Bakeries owns the bread brands Kingsmill, Allinson’s and Sunblest. It also produces own-label bakery ranges for major UK supermarkets. Clive Black, retail analyst at Shore Capital, said the deal shows AB Foods has been true to its word and taken ‘demonstrable action to deal with persistent problem children.’ He said AB Foods and Endless need to overcome any UK antitrust concerns. But Black believes that there is ‘ample’ choice for bread shoppers following any Hovis/Kingsmill alliance, providing a ‘firm basis’ for regulatory approval. On the FTSE 250, Bytes Technology Group jumped 8.4% after launching a share buyback programme worth up to £25 million. A barrel of Brent fell to $66.33 late Friday afternoon from $66.80 on Thursday. Gold rose to $3,343.39 an ounce against $3,339.74. The biggest risers on the FTSE 100 were Anglo American, up 47.00 pence at 2,170.00p, BP, up 7.35p at 421.40p, Glencore, up 5.20p at 299.70p, Games Workshop, up 200.00p at 15,680.00p and Antofagasta, up 26.00p at 2,122.00p. The biggest fallers on the FTSE 100 were Standard Chartered, down 101.50p at 1,305.50p, Rolls-Royce, down 27.50p at 1,074.00p , 3i Group, down 96.00p at 3,971.00p, Airtel Africa, down 4.00p at 216.20p and Rightmove, down 13.80p at 761.00p. Monday’s local corporate calendar has half-year results from BATM Advanced Communications. Next week’s global economic calendar has UK inflation figures, the minutes of the July Federal Reserve meeting, interest rate decisions in China and Sweden and a slew of composite PMI readings. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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