London midday: FTSE maintains gains as oil prices ease off highs

(Sharecast News) - London stocks were still firmer by midday on Friday, after data from GfK showed a surprise improvement in British consumer sentiment and as oil prices came off recent highs.

The FTSE 100 was up 0.2% at 10,704.10, while Brent crude was down 1% at $105.50 a barrel and West Texas Intermediate was 1.8% lower at $92.91 amid growing hopes that US and Iranian negotiators, who are currently meeting in New York, will be able to find a path forward.

Investors were also mulling a meeting between US President Donald Trump and China's Xi Jinping in Washington.

Dan Coatsworth, head of markets at AJ Bell, said: "European equities enjoyed a strong boost at the end of the trading week as investors regained their risk appetite.

"Brent crude oil pulled back slightly to just below $106, but remains at elevated levels. Government bond yields eased back a touch after yesterday's shock session where the US 30-year Treasury hit its highest level since 2004.

"A seemingly amicable meeting between Donald Trump and Xi Jinping was taken as a win, given the fragile relationship between the US and China in recent years. The fact the two leaders were able to meet without any uproar is significant from a geopolitical perspective.

"Xi saying that China and the US must 'coexist in peace' was positive, yet some might argue the whole event was more style over substance. Those hoping for progress on matters relating to AI, trade, Taiwan and Iran are still sitting on the edge of their seat, so far unfulfilled."

Closer to home, and the latest consumer confidence index from GfK, part of the Nuremberg Institute for Market Decisions, came in at -13, up one point on August and the third consecutive month of rises. Economists had expected a slight dip.

Respondents were more confident about their current financial situation and the wider economy, as well as being more optimistic about the coming year. Both the forward-looking personal financial situation and general economic situation sub-indices rose by one point each, to 5 and -22 respectively.

However, the major purchase index dipped one point to -8, while the savings index was up 5 at 27. The savings index is not used to calculate the overall consumer confidence barometer but provides a measure of household's spending intentions.

In equity markets, property developer Harworth jumped to the top of the FTSE 250 as it accepted a sweetened and final 187p-a-share offer from Peel Group, a week after rejecting a bid pitched at 177.5p. Peel also revealed it had agreed to buy around 72m shares at the higher price, taking its stake beyond 52%.

Ferrexpo surged despite posting a slide in production and revenues, following another "exceptionally difficult" period for the besieged iron ore specialist.

United Utilities edged higher as reaffirmed its guidance for 2026/27, and said it was continuing to target regulatory returns of 10% to 11% in the current framework period.

On the downside, Ithaca Energy, BP, Shell and Harbour Energy all fell as oil prices eased back.

Raspberry Pi tumbled, having surged on Thursday after it lifted its full-year profit outlook and hailed record first-half profit and revenue, pointing to strong OEM and reseller demand and increased unit shipments.

In broker note action, HSBC upgraded BP to 'buy' and UBS lifted Glencore to 'buy'.

Market Movers

FTSE 100 (UKX) 10,704.10 0.23%

FTSE 250 (MCX) 24,313.05 0.66%

techMARK (TASX) 6,153.50 0.29%

FTSE 100 - Risers

Computacenter (CCC) 5,435.00p 3.72%

3i Group (III) 2,690.00p 2.83%

Smiths Group (SMIN) 2,826.00p 2.68%

Abrdn (ABDN) 245.60p 2.07%

Fresnillo (FRES) 2,875.00p 2.05%

International Consolidated Airlines Group SA (CDI) (IAG) 436.50p 2.01%

Standard Chartered (STAN) 2,309.00p 1.94%

Lloyds Banking Group (LLOY) 108.90p 1.92%

Metlen Energy & Metals (MTLN) 48.64p 1.90%

Informa (INF) 885.40p 1.68%

FTSE 100 - Fallers

Ithaca Energy (ITH) 283.40p -3.99%

BP (BP.) 554.70p -3.04%

Babcock International Group (BAB) 970.00p -1.48%

BAE Systems (BA.) 1,963.50p -1.43%

British American Tobacco (BATS) 4,186.00p -1.32%

Bunzl (BNZL) 2,656.00p -1.19%

Shell (SHEL) 3,612.00p -0.92%

Imperial Brands (IMB) 2,453.00p -0.85%

Haleon (HLN) 342.00p -0.81%

Rentokil Initial (RTO) 306.60p -0.78%

FTSE 250 - Risers

Harworth Group (HWG) 186.40p 4.37%

Ocado Group (OCDO) 240.00p 3.72%

Pan African Resources (PAF) 124.90p 3.56%

Hill and Smith (HILS) 3,255.00p 3.49%

Syncona Limited NPV (SYNC) 121.60p 3.23%

Wizz Air Holdings (WIZZ) 1,058.00p 2.92%

Oxford Instruments (OXIG) 2,946.00p 2.72%

Pets at Home Group (PETS) 211.80p 2.71%

Globaldata (DATA) 59.10p 2.60%

CMC Markets (CMCX) 686.00p 2.54%

FTSE 250 - Fallers

Raspberry PI Holdings (RPI) 680.75p -9.80%

Harbour Energy (HBR) 269.60p -3.85%

Energean (ENOG) 730.00p -2.67%

Hikma Pharmaceuticals (HIK) 1,598.00p -1.23%

QinetiQ Group (QQ.) 485.00p -1.06%

JPMorgan Emerging Markets Dividend Income (JEMI) 213.00p -0.93%

Vistry Group (VTY) 256.20p -0.69%

Pantheon Infrastructure (PINT) 117.60p -0.68%

Bodycote (BOY) 946.00p -0.42%

Rank Group (RNK) 75.50p -0.40%