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Stock prices in London were mixed at Friday midday, as S&P Global figures showed a sharp contraction in UK services activity during June; meanwhile gold traded higher. The FTSE 100 index was down 35.59 points, 0.3%, at 10,617.28. The FTSE 250 was up 74.53 points, 0.3%, at 23,492.11, and the AIM all-share was down 0.70 points, 0.1%, at 776.75. The Cboe UK 100 was down 0.4% at 1,053.51, the Cboe UK 250 was up 0.4% at 20,252.44, and the Cboe small companies was up 0.4% at 18,387.76. In European equities on Friday, the CAC 40 in Paris was up slightly, while the DAX 40 in Frankfurt was 0.5% higher. Sterling was at $1.3355 at midday on Friday, down from $1.3367 at the London equities close on Thursday. Against the euro, sterling fell to €1.1662 from €1.1681. The euro was flat at $1.1447 from $1.1449. Against the yen, the dollar was slightly higher at JP¥161.09 from JP¥160.87. There was little major news driving the market on Friday, with US financial markets closed for the independence day holiday. AJ Bell analyst Dan Coatsworth said: ‘A lack of big-name corporates reporting on Friday could see a time of reflection for investors and markets to drift as the day goes on. Next week’s reporting calendar is also thin on the ground, although the release of Fed meeting minutes on Wednesday 8 July will give the market a lot to chew on.’ Meanwhile on Friday, UK services activity contracted at the sharpest pace in nearly three-and-a-half years in June, as weak demand, geopolitical uncertainty and rising cost pressures weighed on business conditions, purchasing managers’ index survey results from S&P Global showed. The final seasonally adjusted services PMI business activity index fell to 48.8 points in June from 49.3 in May, remaining below the 50-point mark that separates growth from contraction. The reading was a notch above the flash estimate of 48.7 points published in late June. The final composite output index, which combines services and manufacturing, declined to 49.3 points in June from 49.7 in May, and came lower in than the flash reading of 49.4. It marked the weakest reading since April 2025. S&P Global said service sector business activity fell for a second month running, with the rate of decline the steepest since January 2023. New orders declined for a fourth consecutive month and at the fastest pace since November 2022. UK service providers cited weak domestic economic conditions, client risk aversion linked to the Middle East conflict, domestic political uncertainty, and elevated global inflationary pressures. ‘June data confirmed a clear loss of momentum for the UK economy during the second quarter of 2026, following a positive start to the year,’ said Tim Moore, economics director at S&P Global Market Intelligence. ‘There was better news on the inflation front, as the latest increase in input prices was the slowest since March and well below April’s recent peak.’ Pantheon Macroeconomics analyst Rob Wood said: ‘Business confidence edged down towards the end of June despite falling oil prices and the relatively swift resignation of Keir Starmer easing fears of a messy leadership contest. We estimate that the PMI for June in isolation is consistent with quarter-to-quarter GDP falling by 0.1% in Q2, representing a downside risk to our growth forecasts.’ Elsewhere, the eurozone private sector moved out of contraction territory in June. The S&P Global eurozone composite purchasing managers’ index climbed to the 50 point neutral mark in June, from 48.5 in May. The PMI had also sat in negative territory in April. In London, Fresnillo was up 1.7% as the price of gold rose. Gold was higher at $4,176.14 an ounce on Friday from $4,124.43 late Thursday. AJ Bell analyst Dan Coatsworth said: ‘The precious metal had a disappointing time in the first half of the year and recently dipped below $4,000 as investors were tempted away by attractive yields on bonds and lapped up stocks as the AI boom carried on. Gold has today rebounded, trading just below $4,200 per ounce and taking the likes of Fresnillo and other gold miners along for the ride.’ Coatsworth added: ‘Yesterday’s US jobs data pointed to a softer labour market which has raised hopes that the Fed won’t put up interest rates. The shift in rate expectations led to a drop in US Treasury yields, meaning the opportunity on fixed income was slightly diminished and thereby dampening one of the drivers that’s taken money away from gold this year. Investors might have seen this market shift and decided it was time to add back some more gold.’ On the FTSE 250 index, Close Brothers climbs 5.5%. Shore Capital raises its rating on the merchant bank to ’buy’ from ’hold’. It increases the price target to 495p from 490p. On Thursday, the UK’s financial watchdog paused payouts on its £9.1 billion car finance redress scheme. The Financial Conduct Authority got legal challenges from four companies who are not happy with its plans to compensate people sold a car loan without being informed about commission arrangements. Payouts were meant to start this year but now face significant delays. Johnson Matthey rose 2.3% on the FTSE 250. The London-based speciality chemicals maker said it expects to complete the sale of its Catalyst Technologies business to Honeywell International by the end of August after receiving the final regulatory approval for the deal. The company said the State Administration for Market Regulation in China has granted clearance for the transaction, meaning all conditions for the disposal have now been satisfied. Johnson Matthey said it is working with Charlotte, North Carolina-based industrial conglomerate Honeywell to proceed to completion, which is expected no later than the end of August, as previously announced. Among small caps, EnQuest shares were up 7.3% after JPMorgan raised its price target on the stock to 35p from 29p. The bank maintained an ’overweight’ rating. On the AIM market, Litigation Capital Management sank 10%. The asset manager focused on dispute financing said its funded party has been unsuccessful in seeking permission to appeal a competition claim loss. The investment was held at a value of £800,000, which will now be written off. Brent crude was trading higher at $71.80 a barrel at midday on Friday from $70.76 on Thursday. There are no further items to come on Friday’s economic calendar. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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