London’s FTSE 100 closed higher on Friday, bucking a broader global trend as utility stocks provided support amid a turbulent session driven by semiconductor weakness.
The FTSE 100 Index finished up 28.13 points, or 0.3%, at 10,600.37, while the FTSE 250 fell 111.00 points, or 0.5%, to 23,604.83.
The AIM All-Share also declined, losing 6.87 points, or 0.9%, to close at 759.31 on the day.
For the week, both the FTSE 100 and FTSE 250 each added 1.0%, though the AIM All-Share slipped 0.6% over the same period.
European markets fared worse, with Paris’s CAC 40 ending down 0.5% and Frankfurt’s DAX 40 falling 0.3% on the day.
In New York, the Nasdaq Composite fell 1.3%, the S&P 500 dropped 0.7%, and the Dow Jones Industrial Average edged 0.1% lower.
XTB analyst Kathleen Brooks noted the broader mood, saying: “It is a risk off end to the week, as the global chip sell-off shows no sign of abating.”
Brooks added: “Overall, the market thought that Iran/US tensions would stoke volatility. While the geopolitical backdrop is important, it’s the chip stock sell-off that is dominating markets this week, and it still shows no sign of letting up.”
Nvidia (NVDA) briefly lost its position as the world’s most valuable company to Apple (AAPL), before partially recovering to hold a market value of around 4.94 trillion US dollars.
Nvidia closed down 1.5%, having been more than 4% lower earlier in the session, while Apple edged up 0.5% to a market value of approximately 4.92 trillion dollars.
Tensions in the Middle East added to the cautious trading atmosphere, with the commander of the Aerospace Force in Iran’s Revolutionary Guards, Majid Mousavi, vowing in a social media post that “effective and targeted strikes from across Iran against the enemy will continue.”
Iran’s top negotiator Mohammad Bagher Ghalibaf warned that any deal to end the war “only has meaning when its clauses are valid and being implemented.”
White House press secretary Karoline Leavitt told reporters that US President Donald Trump would hold Iran “accountable” for going back on its word, while remaining open to diplomatic engagement.
Brent crude rose to 86.53 dollars a barrel from 84.75 dollars the previous session, reflecting the elevated geopolitical risk premium in energy markets.
In London, utility stocks led the gains, with National Grid (NG.) climbing 3.3%, Severn Trent (SVT) rising 2.9%, and SSE (SSE) adding 2.4%.
Burberry (BRBY) was the sharpest large-cap faller, sinking 6.4% despite reporting retail revenue rising 5.1% to £455 million in the 13 weeks to June 27, as a cautious outlook disappointed investors.
AJ Bell analyst Russ Mould commented: “Burberry looked primed to strut its stuff based on one of its best quarters in years, but a cautious outlook and weak showing in certain markets saw the shares trip up.”
Aston Martin Lagonda Global (AML) shares fell 2.4%, with Bloomberg News reporting the company is in talks with lenders including BlackRock (BLK)-owned HPS Investment Partners on raising additional funds.
Smiths News (NWS) gained 4.5% after announcing new long-term contracts with Frontline Ltd and Seymour Distribution Ltd, reinforcing its partnerships with publishers and distributors.
On the political front, Andy Burnham formally became Labour’s new leader at a special conference at the Trades Union Congress headquarters in London, pledging to give people “the Labour they once knew” ahead of replacing Sir Keir Starmer as prime minister next week.