The FTSE 100 slipped on Friday as investors paused for breath after a rip-roaring rally driven by hopes of an EU/US trade deal and strong corporate earnings.
London’s leading index was down 0.3% at the time of writing, but it is still 10% higher year-to-date. This outstrips the S&P 500’s 8% gain but lags the German DAX’s stellar 20% rally.
“The FTSE 100 lost some ground as investors took stock after another breathless week for the markets,” says AJ Bell investment director Russ Mould.
“There was positive economic news from the UK as retail sales bounced back in June helped by warm weather – although beyond the headline there were several signs that consumer confidence remains fragile.
“The next big focus for the market is whether a deal can be struck between the EU and Trump administration on trade – which would remove one of the biggest remaining uncertainties ahead of next week’s tariff deadline.”
The ultimate driving force of equity returns is earnings, and on that front, investors will be encouraged by the latest round of updates from both UK and US companies.
NatWest was London’s standout corporate story on Friday, as the bank rallied by more than 2% after announcing rising profits and rewarding shareholders with a dividend hike and a share buyback.
“NatWest has given investors reason to cheer heading into the weekend with a broad-based beat this morning,” explained Matt Britzman, senior equity analyst, Hargreaves Lansdown.
“It’s a similar story to Lloyds yesterday, with better impairments doing most of the work to bring profits in a good clip above expectations. Unlike Lloyds, NatWest has taken the opportunity to raise its guidance, though this simply aligns management to where consensus is already sitting.”
However, NatWest was just one of 20 FTSE 100 gainers on Friday as most stocks traded negatively.
The London Stock Exchange Group fell 2% and was the FTSE 100’s top faller as the group extended a losing streak that has taken the shares to the lowest levels since July 2024.
Rightmove was among the fallers despite reporting a 10% increase in revenue in the first half and a 9% increase in the interim dividend.