London’s FTSE 100 closed higher on Friday, bucking a broader global trend as technology sector weakness and geopolitical uncertainty weighed on markets elsewhere.
The FTSE 100 Index ended the session up 28.13 points, or 0.3%, closing at 10,600.37, outperforming most major European and American benchmarks.
The FTSE 250 fell 111.00 points, or 0.5%, to finish at 23,604.83, while the AIM All-Share shed 6.87 points, or 0.9%, closing at 759.31.
Over the course of the week, both the FTSE 100 and FTSE 250 each gained 1.0%, though the AIM All-Share slipped 0.6% across the same period.
European markets also struggled, with the CAC 40 in Paris closing down 0.5% and Frankfurt’s DAX 40 retreating 0.3% by the end of the session.
In New York, the Dow Jones Industrial Average was down 0.1%, the S&P 500 fell 0.7%, and the Nasdaq Composite dropped 1.3% as the chip stock rout continued to dominate sentiment.
XTB analyst Kathleen Brooks noted: “It is a risk off end to the week, as the global chip sell-off shows no sign of abating.”
Brooks added that “the market thought that Iran/US tensions would stoke volatility,” but said “it’s the chip stock sell-off that is dominating markets this week, and it still shows no sign of letting up.”
Apple briefly unseated Nvidia as the world’s most valuable company, before the chipmaker’s shares steadied, with Nvidia valued at around 4.94 trillion US dollars compared with Apple’s 4.92 trillion dollars at the London close.
Nvidia ended down 1.5%, having fallen more than 4% earlier in the session, while Apple edged 0.5% higher as investors rotated between the two tech giants.
Tensions in the Middle East remained a background concern, with the commander of Iran’s Revolutionary Guards Aerospace Force, Majid Mousavi, vowing on Friday that “effective and targeted strikes from across Iran against the enemy will continue” until attacks on “the southern coastline and the Strait of Hormuz” cease.
Iran’s top negotiator Mohammad Bagher Ghalibaf warned that any peace deal “only has meaning when its clauses are valid and being implemented,” adding further uncertainty to diplomatic efforts.
White House press secretary Karoline Leavitt said US President Donald Trump would hold Iran “accountable” for going back on its word, while remaining “open to diplomacy at the very same time.”
Trump had previously threatened to strike Iranian power plants and bridges, telling Fox News: “Next week it gets really bad for them,” raising the temperature on already strained relations.
Brent crude climbed to 86.53 dollars a barrel, up from 84.75 dollars on Thursday, reflecting ongoing concerns about supply disruption through the Strait of Hormuz.
Back in London, utility stocks provided strong support to the index, with National Grid rising 3.3%, Severn Trent up 2.9%, and SSE advancing 2.4% on the day.
Burberry (BRBY) was the session’s worst large-cap performer, sinking 6.4% despite reporting retail revenue rising 5.1% to £455 million in the 13 weeks to June 27 from £433 million a year earlier.
AJ Bell analyst Russ Mould said: “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 shares fell 2.4% after Bloomberg News reported the luxury carmaker was in talks with lenders including BlackRock-owned HPS Investment Partners on raising additional funds.
Smiths News shares rose 4.5% after the Swindon-based newspaper wholesaler announced new long-term contracts with Frontline Ltd and Seymour Distribution Ltd, reinforcing its partnerships with major UK magazine distributors.
In domestic politics, Andy Burnham was officially confirmed as Labour’s new leader at a special conference at the Trades Union Congress headquarters in London, pledging to give people “hope back” and “the Labour they once knew” ahead of replacing Sir Keir Starmer as prime minister next week.