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London’s FTSE 100 edged higher on Friday, recovering Thursday’s lost ground, as European stocks failed to replicate the more confident strides they delivered on Wednesday when ceasefire optimism turbocharged the equity market. ‘As the week closes, the tone is constructive but fragile. This is not a market celebrating resolution; it is a market renting optimism into the weekend, part conviction, part mechanics, fully aware that the bill gets settled when the screens light up again,’ SPI Asset Management analyst Stephen Innes commented. The FTSE 100 index edged up 6.45 points, 0.1%, at 10,609.93. The FTSE 250 rose 81.10 points, 0.4%, at 22,286.74, and the AIM all-share edged up 0.39 of a point, 0.1%, at 769.74. The Cboe UK 100 climbed 0.4% at 1,058.15, the Cboe UK 250 rose 0.5% at 19,382.16, but the Cboe small companies edged up 0.1% at 17,647.22. The CAC 40 in Paris rose 0.1%, while Frankfurt’s DAX 40 added 0.2%. In Tokyo, the Nikkei 225 added 1.8% on Friday. The Shanghai Composite climbed 0.5%. The Hang Seng Index added 0.7%. Sydney’s S&P/ASX 200 fell 0.1%. Pakistan was poised on Friday to host Iranian and US delegations for negotiations in its capital, although Tehran’s participation remained uncertain after deadly Israeli strikes on Lebanon threatened this week’s temporary truce. Separately, Israel and Lebanon will hold talks in Washington next week, a State Department official said, amid mounting international concern that Israel’s bombing campaign could shatter the already fragile two-week US-Iran ceasefire. ING analysts commented: ‘Markets aren’t being provided with clear direction at the moment. There is a strong sense that the ceasefire is fragile, with ongoing Israeli attacks in Lebanon proving a key friction in US-Iran negotiations. However, investors aren’t ready to price in a re-escalation, and some optimism is being placed on announced Israel-Lebanon talks next week.’ A barrel of Brent rose slightly to $97.62 on Friday, from $97.36 late Thursday. Gold traded at $4,749.52 an ounce early Friday, down from $4,791.50 late Thursday. Japanese Prime Minister Sanae Takaichi said Friday that officials would release an extra 20 days’ worth of oil reserves from next month. The country began tapping its stockpiles, the world’s largest, in March as the government looked to temper a spike in prices caused by the hit to supply from the Middle East war. ‘To ensure the stable supply of crude oil, we will release starting in early May the equivalent of roughly 20 days’ worth (of oil) from the national reserves,’ she said at a meeting held in response to the conflict in the Middle East. It will be the second release from the state oil reserves, while it has also tapped 15 days worth of private-sector petroleum stockpiles. The pound bought $1.3420 early Friday, down from $1.3437 at the time of the London equities close on Thursday. Against the euro, it fetched €1.1484, unchanged. The euro stood at $1.1687, down from $1.1705. Against the yen, the dollar was buying JP¥159.27, up from JP¥158.97. The yield on the US 10-year Treasury narrowed to 4.29% from 4.30%. The 30-year yield was steady at 4.89%. In London, interest rate sensitive housebuilders were on the up. Barratt Redrow rose 2.0% and Persimmon climbed 1.5%. The duo had declined on Thursday amid ceasefire nerves. Elsewhere, AO World surged 8.0%. The online electricals seller AO World expects profit in line with previously upgraded guidance, ‘despite material cost headwinds’. Adjusted pretax profit for the year to March 31 is expected to rise around 15% to the top end of a £45 million to £50 million range, from £43.5 million the year prior. Revenue growth expected to be 11%. All-in-all, it shows profit is ‘growing quicker than sales’, despite AO World seeing ‘material cost headwinds’. ‘The group had hedging arrangements in place in advance of recent geopolitical developments, covering approximately 80% of forecast fuel usage and 100% of electricity usage which cover the full FY27 trading period,’ it added. Unite Group rose 1.3% as it eyes continuing disposals, which would offer more funds towards buybacks. ‘At our upcoming AGM, we are seeking authority to repurchase up to 14.99% of share capital in anticipation of progressing disposals,’ the student accommodation firm said. Unite said it is on track for £300 million to £400 million of asset disposals in 2026, noting £130 million have been completed or are under offer and marketing, with a further £500 million sized up for sales over the next six to 12 months. Unite added: ‘Advisers appointed to support acceleration of further asset disposals to reposition towards higher-quality portfolio aligned to the strongest universities.’ Impax Asset Management slumped 26%. Impax Asset Management Group says ‘markets have been considerably more favourable’ since January, though it has seen outflows continue. The asset manager focused on a ‘transition to a more sustainable economy’, said assets under management at its March 31 second quarter end amounted to £22.31 billion, down from £24.24 billion in December. It reported net outflows of £2.01 billion over the three month stretch. ‘Since January, after a difficult three-year period for investment managers like Impax that focus on actively managed thematic strategies, markets have been considerably more favourable. During the second quarter, 63.4% of our AUM outperformed, notwithstanding the more recent market turbulence,’ CEO Ian Simm said. ‘As many asset owners base their investment decisions on historical numbers over at least one year, we were not surprised to see a continuation in net outflows, driven principally by redemptions from a small number of institutional investors. By contrast, net outflows in our wholesale channel were lower and we continue to see an improving trend in flows via our largest distribution partner.’ Still to come on Friday is a US consumer price inflation reading at 1330 BST. Analysts at Lloyds Bank commented: ‘It is likely to be a different dynamic for US March CPI inflation later today. Here the sharp rise in gasoline prices at the pump is set to feed through to the motor fuel component in its usual direct way and could help boost the overall headline inflation rate by 1ppt to 3.4% y/y. The question for the Fed is how much that tangible and immediate energy impact seeps into other items. If the core rate only rises 0.2ppts to 2.7% y/y the answer will be not very much for now, but it could be more in the months ahead. Analysis of this type of seepage ought to be an important part of Fed deliberations in terms of the response to the energy shock, but it will take time to monitor suggesting no imminent rate changes at forthcoming FOMC meetings.’ In the US on Thursday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.6%, the S&P 500 up 0.6% and the Nasdaq Composite up 0.8%. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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