UK shares open little changed as NatWest beats profit forecasts and IAG misses on fuel costs; Brent holds near a fourth month of gains.
Market Overview
UK and European markets opened little changed to firmer on Friday, tracking a global rally in technology shares after blockbuster results from Amazon lifted sentiment on Wall Street and across Asia overnight. The FTSE 100 was broadly flat at the open, the Euronext 100 edged up marginally, and Germany’s DAX added around zero point three seven per cent to trade above 25,700. In New York, the Nasdaq Composite closed up around two point seven eight per cent and the S&P 500 gained around one point six six per cent on Thursday, extending the tech-led advance, though gains were tempered by renewed geopolitical risk after reports of fresh military exchanges between the US and Iran.
Commodity markets were mixed, with copper firmer at the open while gold and natural gas edged lower. Brent crude was little changed on the day but remains close to a fourth consecutive monthly gain of around 20 per cent, as a widening conflict between the United States and Iran continues to threaten regional energy supply routes. Sterling was broadly stable against its major peers, slipping fractionally against the US dollar, Swiss franc and euro while edging higher against the Australian dollar and Japanese yen. Bitcoin fell against sterling. The overall tone remains one of cautious optimism, with artificial intelligence-driven earnings supporting European equities even as Middle East tensions keep energy markets on edge.
Market Numbers
FTSE 100: Flat (0.00%), 10,897.12
Euronext 100: Up (+0.01%), 1,921.74
DAX: Up (+0.37%), 25,707.33
NASDAQ: Up (+2.78%), 25,122.18
S&P 500: Up (+1.66%), 7,437.63
In the Headlines
NatWest tops H1 profit forecasts
NatWest Group (LSE:NWG) reported first-half operating profit before tax of four point three billion pounds, ahead of analyst forecasts of around four billion pounds, up twenty per cent on last year. The bank has moved forward its share buyback timeline to start alongside its full-year 2026 results, underlining it’s confidence in its capital position after return on tangible equity reached nineteen point seven per cent for the period.
IAG profit misses on fuel costs
International Consolidated Airlines Group (LSE:IAG), the parent of British Airways, posted second-quarter operating profit of one point two six billion euros, below the one point three seven billion euros analysts had expected, as fuel costs tied to the conflict in the Middle East weighed on results. The group now expects flat capacity for 2026, having previously guided for growth, though it said travel demand across its network remains strong.
Currencies (vs GBP)
USD: Down (-0.00%), $1.3462
CHF: Down (-0.00%), Fr.1.0847
EUR: Down (-0.01%), €1.1681
JPY: Up (+0.01%), ¥215.624
AUD: Up (+0.01%), $1.916
Bitcoin (BTC/GBP): Down (-0.73%), £47,576.64
Commodities
Copper: Up
Gold: Down
Brent Crude: Down
Natural Gas: Down
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