The FTSE 100 was steady near all-time record highs on Friday as investors braced for the next phase of China/US trade talks, as Trump prepared to head to Asia.
After closing at a record high of 9,578 yesterday, the FTSE 100 eased back to 9,560 in mid-morning trading. The index also touched an intraday high of 9,594 during yesterday’s session.
“The FTSE 100 held firm after last night’s record close, with strength in banks and tech stocks offsetting weakness in the natural resources space,” says Russ Mould, investment director at AJ Bell.
“Trade relations were front of mind for investors ahead of Donald Trump’s visit to Asia and a new fight between the US and Canada.
“A lot is riding on Trump’s negotiations with China’s Xi Jinping as tensions have been riding high. The market would love clarity on trade agreements between the US and China, and the avoidance of sky-high tariffs. It’s impossible to say whether that will happen, such is the unpredictable nature of Trump, but any positive takeaways could have a major impact on financial markets next week.”
Mild risk aversion was to be expected on Friday, yet the dip appeared to be nothing more than traders reducing exposure after a strong run rather than outright concern.
The London Stock Exchange Group was again the top riser as yesterday’s strong updates were met with a string of broker upgrades. Goldman Sachs had the most ambitious of the broker upgrades, raising its price target to 13,790p from 13,200p. LSEG shares were trading 5% higher at 9,802p at the time of writing.
NatWest was also among the top risers after releasing very attractive Q3 results. Profit rose 35% as income increased 15% amid higher net interest margins and strong underlying customer activity.
“NatWest has joined Barclays in upgrading guidance, a sign that things really are looking up for the UK banking sector. It has been a good 24 hours for UK news, providing hope that the economy is moving out of the doldrums,” said Chris Beauchamp, Chief Market Analyst UK at IG.
“NatWest’s performance means that speculation that it is poised to go hunting for more acquisitions can only increase from here, now that the turnaround efforts have borne fruit.”
NatWest shares were 2% higher at the time of writing.
Gains for NatWest and the London Stock Exchange Group were offset by weakness in miners and utility companies.
Fresnillo shares are starting to lose their shine with the precious metals rally showing signs of consolidation. Fresnillo was the top faller on Friday, down 2%, but that is nothing compared to the 240% gain the stock has seen so far this year.
Metlen Energy & Metals and Glencore were also among the fallers.