UK and European equity markets opened broadly flat on Friday, with the FTSE 100 starting the session at 10,772.54, fractionally below its previous close.
The Euronext 100 edged up to 1,975.08 while Germany’s DAX advanced to 26,445.99 at the open, reflecting cautious optimism across the continent.
Wall Street had closed higher overnight, with the Nasdaq Composite ending at 26,803.03, up 0.81 per cent, and the S&P 500 finishing at 7,798.99, up 0.65 per cent.
Investors were balancing easing US inflation pressure against renewed tension in the Gulf, where attacks on tankers in the Strait of Hormuz and a US threat of an indefinite naval blockade of Iran kept energy markets on edge.
Flat US producer price data reduced expectations of further Federal Reserve tightening, offering some relief to equity markets heading into the weekend.
Commodity markets reflected Gulf-driven caution, with Brent crude and natural gas both firmer at the open and gold ticking higher as a safe-haven hedge, while copper eased alongside broader softness in base metals.
Bitcoin retreated against sterling to £46,599.41, down 1.58 per cent, as risk appetite cooled across digital asset markets.
Aviva plc (LSE: AV.) delivered a standout earnings result, with first-half operating profit rising 24 per cent to £1.33 billion, driven by strong growth in general insurance and the continued integration of Direct Line.
Cash remittances climbed 47 per cent to £1.50 billion, reinforcing confidence in the group’s 2028 targets and underlining robust demand across UK personal lines.
Aviva acquired Direct Line for £3.7 billion a year ago, and the turnaround of the once-troubled motor insurer has proven a meaningful contributor to the group’s improved profitability in the period.
The first-half operating profit of £1.33 billion came in ahead of the £1.26 billion that City analysts had pencilled in for the six months to the end of June, representing a clear beat against consensus expectations.
The group also declared an interim dividend of 14.0 pence per share, payable on 15 October to shareholders on the register at 4 September, extending its record of consistent dividend growth.
Central Asia Metals plc (LSE: CAML) also made headlines, setting out the timetable for its proposed all-share acquisition of ASX-listed Cygnus Metals, with a shareholder vote scheduled for 4 September.
Completion of the deal is expected in early October, and it would add further development and exploration assets to CAML’s existing operations in Kazakhstan and North Macedonia, broadening its base metals portfolio.
Sterling remained broadly steady against major currencies overnight, with the pound little changed against the dollar at $1.349, the euro at €1.1696, and the Swiss franc at Fr.1.0983 ahead of further inflation data.