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Stock prices in London were mostly higher on Friday morning ahead of UK PMI data, while the gold price retreated; meanwhile NatWest shares were up as it lifted its annual guidance. The FTSE 100 index opened up 9.02 points, 0.1%, at 9,588.29. The FTSE 250 was up 10.36 points, 0.1%, at 22,371.87, and the AIM All-Share was down 2.89 points, 0.4%, at 772.40. The Cboe UK 100 was flat at 958.09, the Cboe UK 250 was down 0.1% at 19,501.75, and the Cboe Small Companies was up 0.3% at 17,624.88. The stronger-than-expected September retail sales figures provided further reassurance about the UK economy’s resilience. After better-than-expected borrowing and inflation data earlier this week, the numbers suggest consumers still have more strength than anticipated. The Office for National Statistics reported that retail sales volumes rose 0.5% month-on-month in September, following a 0.6% gain in August. The increase beat the FXStreet consensus for a 0.2% fall and extended a four-month run of growth, pushing sales volumes to their highest level since mid-2022. Over the three months to September, sales were up 0.9% compared with the previous quarter, marking a solid rebound after a sluggish start to the year. Sterling was quoted at $1.3311 early Friday in London, down slightly from $1.3323 at the close on Thursday. The euro traded at $1.1616, compared to $1.1609 late Thursday, while the dollar rose to JP¥152.86 from JP¥152.71. NatWest topped the FTSE 100 after releasing its third-quarter earnings update. In international trade developments, Chinese Commerce Minister Wang Wentao said Beijing and Washington ‘can totally find ways to resolve each other’s concerns’ ahead of fresh talks in Malaysia. Both nations have been locked in a prolonged tariff dispute but are now signalling a willingness to avoid further escalation. The White House confirmed US President Donald Trump will meet Chinese President Xi Jinping in South Korea next Thursday. Trump will hold talks with Xi in the morning before flying back to Washington later that day, said Press Secretary Karoline Leavitt. In Europe, the CAC 40 in Paris was flat, while Frankfurt’s DAX 40 added 0.1%. S&P Global’s flash PMI surveys showed diverging trends across the eurozone’s two largest economies. France’s composite PMI fell to an eight-month low of 46.8 points in October from 48.1, signalling a deeper downturn in private sector activity amid political uncertainty. By contrast, Germany’s composite output index rose to a 29-month high of 53.8 points from 52.0, pointing to faster growth in services, despite continued staff cuts across industries. On Wall Street, the Dow Jones Industrial Average rose 0.3% on Thursday, while the S&P 500 added 0.6% and the Nasdaq Composite climbed 0.9%. Economic data remains limited amid the ongoing US government shutdown, but the Bureau of Labor Statistics said it will publish September consumer price data today. The FXStreet consensus expects headline inflation at 2.9%, above the Federal Reserve’s 2% target. ‘Despite tariff-led price pressures in some sectors, there are indications that airfares, hospitality, and housing will drag on CPI,’ ING analysts said. ‘With headline and core close to 3%, the Fed can cut and signal more easing ahead, but with no jobs data available, it will be hard to speculate beyond December.’ In North America, Canada on Thursday announced it will cut tariff-free import quotas for carmakers Stellantis and General Motors, after the two companies scaled back local production. Ottawa said it will reduce GM’s annual quota by 24.2% and Stellantis’s by 50%. The move followed Trump’s announcement that the US was ending all trade negotiations with Canada, accusing Ottawa of ‘egregious behaviour’ over a political advertising campaign. ‘Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED,’ Trump said on his Truth Social network. Back in London, NatWest Group led the FTSE 100, jumping 3.5% after lifting its annual guidance and reporting a sharp rise in quarterly profit. Pretax profit for the third quarter surged 30% year-on-year to £2.18 billion from £1.67 billion, supported by strong customer activity. Total income grew 16% to £4.33 billion from £3.74 billion, topping the company-compiled consensus of £4.10 billion, while pretax profit also exceeded expectations of £1.83 billion. Net interest income rose 13% to £3.27 billion, and non-interest income climbed 26% to £1.06 billion. London Stock Exchange Group followed closely, up 3.2%, after JPMorgan and Goldman Sachs both raised their price targets for the stock to 13,300p and 13,790p respectively, maintaining their bullish ratings. Kingfisher also rose 1.9% after RBC upgraded the home improvement retailer to ‘outperform’ from ‘sector perform,’ raising its price target to 350 pence from 320p. At the other end of the index, GSK fell 1.7% after announcing US Food & Drug Administration approval for its cancer drug Blenrep (belantamab mafodotin-blmf), in combination with bortezomib and dexamethasone, to treat adults with relapsed or refractory multiple myeloma. The approval is based on phase III Dreamm-7 data showing a 51% reduction in death risk and a tripling of median progression-free survival. Chief Scientific Officer Tony Wood called the approval ‘a significant milestone,’ noting the therapy’s availability in community settings, where most patients receive care. In the FTSE 250, WH Smith gained 4.1% after Peel Hunt upgraded the retailer to ‘buy’ from ‘hold’ and lifted its price target to 800 pence from 755p. Among small caps, Capricorn Energy surged 9.1% after reaffirming its full-year output guidance of 17,000 to 21,000 barrels of oil equivalent per day. The company said it continues to invest in its Egyptian assets, expects further payments against arrears before year-end, and has received $50 million from the Egyptian General Petroleum Corp, leaving accounts receivable at around $115 million. In Asia, markets traded mostly higher. The Nikkei 225 in Tokyo rose 1.4%, the Shanghai Composite gained 0.7%, and the Hang Seng in Hong Kong advanced 0.8%, while the S&P/ASX 200 in Sydney slipped 0.2%. Brent oil was quoted at $65.34 a barrel early Friday, little changed from $65.75 late Thursday. BP and Shell edged higher, up 0.1% and 0.3%, respectively. Gold eased to $4,066.00 an ounce from $4,146.49 late Thursday. Still to come on Friday’s economic calendar are UK flash PMI readings, Canadian manufacturing sales, and US CPI and flash PMI data. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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