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Equities were weaker on Friday morning in London, as markets eyed a lack of progress in negotiations between the US and Iran, while oil prices hiked once again. The FTSE 100 index opened down 36.80 points, 0.4%, at 10,420.21. The FTSE 250 was down 135.23 points, 0.6%, at 22,629.29, and the AIM all-share was down 4.83 points, 0.6%, at 797.30. The Cboe UK 100 was down 0.6% at 1,036.74, the Cboe UK 250 was 0.7% lower at 19,688.76, and the Cboe small companies was down 0.2% at 18,181.22. In European equities on Friday, the CAC 40 in Paris was 0.8% lower, while the DAX 40 in Frankfurt fell 0.1%. Sterling was at $1.3474 on Friday morning, down from $1.3500 at the London equities close on Thursday. Against the euro, sterling was lower at €1.1528 from €1.1551. The euro was a little lower at $1.1691 from $1.1708. Against the yen, the dollar was slightly higher at JP¥159.68 versus JP¥159.50. Geopolitical tensions remained high amid an ongoing stalemate in the Strait of Hormuz, while the price of oil climbed higher above $100 a barrel. Brent oil was trading higher at $106.28 a barrel on Friday morning from $103.25 on Thursday. US President Donald Trump vowed the US would destroy any vessel laying mines in the Strait of Hormuz but ruled out striking the country with a nuclear weapon, saying they ‘should never be allowed to be used by anybody’. ‘Iran, frustrated by Trump’s blockade and public bashing, appears unwilling to return to the negotiating table,’ noted Swissquote analyst Ipek Ozkardeskaya. In more positive news, Israel and Lebanon extended a ceasefire by three weeks, Trump announced, as he voiced hope for a historic three-way meeting soon and a potential peace deal. However, Ozkardeskaya added: ‘Developed market yields are rising alongside oil prices, fueling inflation expectations, while equities remain hesitant near all-time highs.’ Back in the UK, the volume of retail sales rose by 0.7% in March, following a revised 0.6% fall in February and a revised 1.8% rise in January, according to the Office for National Statistics. Fuel sales jumped sharply on the month, as motorists stocked up on fuel as prices climbed. Total retail sales, excluding automotive fuel, rose by 0.2% on-month, in line with FXStreet-cited expectations. Sales volumes, including automotive fuel, rose by 1.7% over the year to March 2026. In Asia on Friday, the Nikkei 225 in Tokyo was up 1.0%. In China, the Shanghai Composite was 0.3% lower, while the Hang Seng Index in Hong Kong was up 0.3. The S&P/ASX 200 in Sydney was 0.1% lower. In the US on Thursday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.4%, the S&P 500 0.4% lower and the Nasdaq Composite down 0.9%. The yield on the US 10-year Treasury was quoted at 4.32% on Friday, widened from 4.29% on Thursday. The yield on the US 30-year Treasury advanced to 4.91% from 4.89%. Back in London, shares in British American Tobacco led the way on the FTSE 100 as it climbed 2.4% after Morgan Stanley upgraded its rating on the stock to ’overweight’ from ’underweight’. Mondi shares sank 6.1% as it blamed lower prices and mounting costs stemming from the Middle East conflict for a sharp decline in profitability in the first quarter of 2026. The Weybridge, England-based packaging firm reported that underlying earnings before interest, taxes, depreciation and amortisation, including forestry fair value, fell 27% to €212 million for the first quarter to the end of March, from €290 million a year earlier. Describing first-quarter market conditions as challenging, Mondi noted that lower average selling prices and higher energy-related input costs towards the end of the first quarter offset stronger sales volumes. ‘Against a backdrop of challenging market conditions, sales volumes increased, although lower selling prices and latterly, cost pressures linked to escalating geopolitical tensions, weighed on underlying Ebitda,’ Mondi Chief Executive Officer Andrew King said. Shares in JD Sports Fashion were down 2.9% after the Financial Times reported that Andrew Higginson quit as chair after pushing for chief executive Regis Schultz to be ousted and failing to win unanimous backing for the move. According to FT sources, Higginson made representations to members of the board that Schultz should be replaced as JD boss after a three-and-a-half-year tenure in which the sportswear business has reported slowing sales and struggled in its key North American market. While some directors agreed with Higginson, it was not a unanimously held view, the sources told the FT. On the FTSE 250 index, shares in Computacenter jumped 6.1% as it raised its outlook for the full year after a ‘strong’ performance in the first quarter. The Hatfield, England-based technology services provider said trading in the three months to March 31 was ‘significantly ahead’ of the prior year, and ‘well above’ its own expectations. Looking ahead, the company said it now expects to deliver ‘much stronger performance in the first half of the year than previously anticipated’, and guided a full-year performance ‘comfortably ahead of market expectations’. Computacenter said company compiled analyst consensus for 2026 include adjusted pretax profit of £291.3 million, with a range of £284.5 million to £297.1 million. In 2025, the company reported £272.0 million in adjusted pretax profit. Gold was lower at $4,692.23 an ounce early on Friday from $4,731.39 late Thursday. Still to come on Friday’s economic calendar is the Michigan consumer sentiment index and Canadian retail sales data. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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