London pre-open: Stocks seen muted ahead of long weekend

(Sharecast News) - London stocks were set for a muted open on Friday following strong gains in the previous session, as investors continued to mull developments in the Middle East conflict and looked ahead to the long weekend.

The FTSE 100 was called to open around five points lower. At 0725 BST, Brent crude was up 0.9% at $111.43 a barrel.

Ipek Ozkardeskaya, senior analyst at Swissquote, said: "Another month ended with no light at the end of the tunnel for the Iran war. On the contrary, the US is not willing to lift the naval blockade in the Strait of Hormuz, while Iran says it will not give up its nuclear programme and will not come to the negotiating table unless the US lifts the blockade. We're repeating the same lines every day.

"Meanwhile, the near-closure of the Strait of Hormuz keeps the oil market tight. Trump downplays rising oil prices, arguing that there is plenty of oil - but blocked in the Strait - and that prices will fall like a rock once the issues are resolved. But when will that be? No one knows."

On home shores, figures from Nationwide showed that house prices unexpectedly rose in April.

House prices ticked up 0.4% on the month following a 0.9% jump in March, beating expectations for a 0.3% fall. On the year, prices were 3% higher in April following a 2.2% gain the month before.

The average price of a home stood at �278,880, up from �277,186.

Nationwide chief economist Robert Gardner said: "Despite the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices, the UK housing market has continued to regain momentum following the slowdown recorded around the turn of the year.

"This is somewhat surprising given that indicators of consumer confidence have weakened noticeably. GfK's headline index has fallen to its lowest level since late2023, reflecting households' more pessimistic views of the economic outlook and their own financial position over the year ahead.

"Measures of housing market sentiment have also deteriorated. The Royal Institution of Chartered Surveyors reported a sharp fall in new buyer enquiries in March, taking the index to its weakest reading since 2023. This softening is likely to have been influenced by higher market interest rates following the onset of the conflict, alongside a more uncertain backdrop."

Gardner said the market was likely being supported by the "relative strength" of household finances.

In corporate news, NatWest said it expected annual earnings to be at the upper end of guidance after posting a 4.8% jump in first quarter profits.

The UK bank now expects income excluding notable items to be at the top end of its range of �17.2 -17.6bn. Operating profit for the three months to 31 March came in at �2bn compared with �1.9bn in the final quarter of 2025.

Educational publisher Pearson said that it had made a solid start to 2026, with underlying group sales up 4% in the first quarter and all divisions trading in line with expectations, keeping it on track to meet fullyear guidance.

Looking ahead, Pearson reiterated its 2026 outlook, including midsingledigit underlying sales growth and adjusted operating profits of �640m to �685m. It also maintained its mediumterm targets for sustained margin improvement and strong cash conversion.