London midday: Stocks stay up amid trade deal hopes

(Sharecast News) - London stocks were still in the black by midday on Friday as optimism over US trade deals boosted sentiment.

The FTSE 100 was 0.5% firmer at 8,571.72.

After the UK and US struck a trade deal on Thursday, investors were looking ahead to talks between the US and China, due to take place over the weekend in Switzerland.

Russ Mould, investment director at AJ Bell, said: "With the UK having basked in trade deal glory yesterday, the spotlight has now turned to China.

"China is America's biggest rival in the trade war and any sign of a compromise in their tit-for-tat tariff spat could be taken positively by markets. It would help to settle nerves and dial down uncertainty in the markets, something that could easily put investors back in risk-on mode.

"US-China trade talks are scheduled for this weekend and they could be make or break for the Chinese economy. New data shows that China's exports went bananas in April as overseas manufacturers raced to stockpile materials from the Asian superpower for fear of tariffs getting out of control.

"Failure to convince Trump to ease back on tariffs would mean China has to lean even harder on domestic consumption to prop up its lofty economic growth goals, and that's already proved to be a challenge even before Trump returned to the White House.

"Yesterday's UK-US trade deal happened just before the UK market closed which meant quite a few investors won't have had time to soak it all in and adjust portfolios accordingly. The FTSE 100 shrugged off the event in the heat of the moment, but advanced 0.4% in early trading on Friday as investors belatedly celebrated the agreement.

"Notably, the FTSE 100 top risers' list was full of UK-listed stocks that do business in the US, such as retailer JD Sports, rat catcher Rentokil and industrial groups Smiths and Spirax.

"The trade deal was smaller than expected but strategically significant as it puts the UK in the friend zone for the US, a status whose importance shouldn't be underestimated."

In equity markets, shares in BP sparked after it was reported that a range of possible suitors were running a slide rule over the oil and gas major.

According to the Financial Times, Shell, Chevron, ExxonMobil, TotalEnergies and Abu Dhabi's Adnoc have run the numbers on a potential acquisition. Oil trader Vitol, meanwhile, is also thought to be potentially interested in parts of the business.

British Airways owner IAG rose as it held annual guidance after a surge in first-quarter operating profits, adding that second quarter revenue was ahead of last year. Operating profit before exceptional items increased by �130m to �198m as strong revenue growth and a lower fuel price offset expected cost increases, IAG said.

Rightmove reversed earlier gains as it reiterated its full-year 2025 guidance, expecting 8% to 10% revenue growth and a 70% underlying operating profit margin, supported by continued ARPA growth and rising membership across its Core business.

Travis Perkins rallied after the builders' merchant said it has appointed Gavin Slark - the current chief executive of construction group SIG - as its new CEO with effect no later than 1 January 2026. SIG shares tumbled.

Urban Logistics REIT advanced after agreeing to be bought by LondonMetric in a �698.9m deal.

Market Movers

FTSE 100 (UKX) 8,571.72 0.47%

FTSE 250 (MCX) 20,516.09 0.29%

techMARK (TASX) 4,661.87 0.32%

FTSE 100 - Risers

Airtel Africa (AAF) 162.20p 3.97%

BP (BP.) 369.35p 3.90%

JD Sports Fashion (JD.) 87.36p 3.38%

Fresnillo (FRES) 1,051.00p 2.04%

International Consolidated Airlines Group SA (CDI) (IAG) 296.00p 1.96%

Croda International (CRDA) 3,150.00p 1.91%

Kingfisher (KGF) 302.00p 1.82%

Glencore (GLEN) 257.10p 1.70%

Associated British Foods (ABF) 2,062.00p 1.68%

Informa (INF) 784.20p 1.50%

FTSE 100 - Fallers

Unite Group (UTG) 830.50p -1.72%

BAE Systems (BA.) 1,717.00p -1.66%

easyJet (EZJ) 522.60p -1.32%

Persimmon (PSN) 1,342.50p -1.29%

Taylor Wimpey (TW.) 117.60p -1.26%

InterContinental Hotels Group (IHG) 8,668.00p -1.16%

British American Tobacco (BATS) 3,203.00p -1.11%

Imperial Brands (IMB) 3,053.00p -0.91%

Barratt Redrow (BTRW) 468.20p -0.70%

London Stock Exchange Group (LSEG) 11,375.00p -0.66%

FTSE 250 - Risers

Travis Perkins (TPK) 622.00p 6.69%

Playtech (PTEC) 336.50p 4.99%

Harbour Energy (HBR) 175.40p 4.03%

Urban Logistics Reit (SHED) 151.40p 3.98%

Watches of Switzerland Group (WOSG) 365.80p 3.45%

Ocean Wilsons Holdings Ltd. (OCN) 1,360.00p 3.03%

Ithaca Energy (ITH) 140.10p 2.86%

Spectris (SXS) 2,102.00p 2.34%

Domino's Pizza Group (DOM) 268.00p 2.29%

Ferrexpo (FXPO) 63.20p 2.27%

FTSE 250 - Fallers

AO World (AO.) 96.40p -4.74%

Renishaw (RSW) 2,590.00p -4.43%

Mobico Group (MCG) 29.14p -4.33%

Crest Nicholson Holdings (CRST) 193.40p -1.83%

Keller Group (KLR) 1,496.00p -1.71%

Apax Global Alpha Limited (APAX) 117.00p -1.68%

Great Portland Estates (GPE) 326.00p -1.36%

Vistry Group (VTY) 615.80p -1.28%

Bellway (BWY) 2,714.00p -1.24%

TP Icap Group (TCAP) 265.00p -1.12%