The FTSE 100 eased back on Friday as oil prices remained above $110 amid ongoing concerns about developments in the Middle East.
London’s leading index was trading down 0.5% at the time of writing, with reports swirling that the US was again considering military options.
London was one of the few stock markets open on Friday because of various holidays worldwide, including European Labour Day.
“The FTSE 100 took a step back on Friday on a mix of continuing concern about the situation in the Middle East, profit taking in the utilities sector and weakness among precious metals miners,” said AJ Bell investment director Russ Mould.
“The latest US earnings season has been robust, which has helped prevent global markets from suffering big losses despite the impact of the Iran conflict. US futures are pointing to another strong showing when trading resumes on Wall Street later.
“But oil prices remaining above $110 per barrel are a reminder of the stakes for the global economy and the fact that there looks to be no path to the Strait of Hormuz reopening in the near term.”
FTSE 100 movers
Precious miner Endeavour Mining was the FTSE 100’s top faller as gold prices slipped again on Friday after a rather soggy week.
NatWest shares were among the losers after the bank released Q1 results that failed to inspire investors. The bank performed well during the period, and shares fell 3% largely due to the outlook.
“NatWest has delivered the kind of update bank investors can work with in a nervous market – not flawless, but profitable, well-capitalised and backed by better guidance,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.
“The profit beat wasn’t really about a surge in income, but about cost discipline, lower litigation costs and strong capital generation doing the heavy lifting. That puts NatWest in a similar camp to some of the other banks this week, where the economic outlook is looking a little more fragile as Middle East tensions feed into oil, inflation, and rate uncertainty, but higher-for-longer rates are also providing a useful buffer.”
DCC was the top riser after rejecting a bid approach, with investors clearly hoping it’s not the end of interest in the company.