UK equities moved higher at the open on Friday following a turbulent week for global markets, with investors continuing to monitor developments related to the Middle East conflict. The situation in the region is expected to remain a key influence on sentiment, while the pound strengthened against the dollar and major European indices also traded higher.
At 08:14 GMT, the FTSE 100 was up 0.2%. Sterling also gained ground, with GBP/USD rising 0.1% to 1.3369 against the dollar. On the continent, Germany’s DAX advanced 0.9% and France’s CAC 40 added 0.4%.
Middle East update
U.S. President Donald Trump said he would oppose Mojtaba Khamenei becoming Iran’s next leader, while Tehran said it has no interest in entering negotiations.
Some reports offered a more constructive development, suggesting China is holding discussions with Iran aimed at ensuring the safe passage of vessels through the Strait of Hormuz.
At the same time, Washington is reportedly considering a range of options to help stabilise oil prices, including the possibility of temporarily easing restrictions on Russian crude supplies.
“Near term, we still see an upward pressure on oil prices, and we could see oil above $90. But we are not in the camp that oil could go above $100 and stay there for an elongated period of time,” according to Jefferies.
UK round up
IMI PLC (LSE:IMI) unveiled a £500 million share buyback after reporting its fifth straight year of mid-single digit organic revenue growth. The British fluid and motion control specialist said adjusted earnings per share increased 8% to 132.3p in 2025.
The FTSE 100 group reported a 5% rise in organic revenue to £2.30 billion, while adjusted operating profit climbed 8% on an organic basis to £460 million. This lifted the adjusted operating margin by 30 basis points to 20.0%. Statutory operating profit increased 19% to £422 million.
Looking ahead, IMI expects adjusted basic EPS for 2026 to range between 136p and 140p, which would mark a sixth consecutive year of mid-single digit organic revenue growth.
Elsewhere in UK corporate news, Marwyn Acquisition Company III Ltd (LSE:MAC3) confirmed that discussions with Palmer Street Limited regarding a possible business combination have ended by mutual agreement.
The negotiations, originally announced on 9 October 2025, were discontinued after both sides concluded that pursuing a public listing would be premature at the present time.
In economic data, UK house prices reached a new record in February, according to figures released by Halifax. The average property price rose to £301,151.
Prices increased 0.3% during the month, following January’s 0.8% gain. On an annual basis, growth accelerated to 1.3% from 1.1% previously, the strongest rate recorded in four months. Since the beginning of the year, average house prices have risen by roughly £3,000.
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