4th Sep 2026 12:12
(Alliance News) - Stock prices in London were mixed on Friday afternoon in cautious trade shortly before a key US jobs report.
The FTSE 100 index traded just 3.08 points lower at 10,828.44. The FTSE 250 added 64.01 points, 0.3%, at 24,560.14, and the AIM all-share was up just 0.23 of a point at 800.04.
The Cboe UK 100 was flat at 1,076.74, the Cboe UK 250 rose 0.3% to 21,365.81, and the Cboe small companies lost 0.3% at 18,885.14.
The CAC 40 in Paris lost 0.2%, while Frankfurt's DAX 40 rose 0.2%, supported by a rise at Volkswagen.
Volkswagen shares shot up 5.7%.
Analysts at Citi commented: "We need to congratulate not only VW management, but also the VW workers council, and even the State of Lower Saxony representatives. The VW Supervisory Board has unexpectedly unanimously approved management's future plan 2030. This is a brave plan and a realistic decision for all concerned."
Sterling traded at USD1.3534 midday Friday, down fractionally from USD1.3536 at the time of the London equities close on Thursday. Against the euro, it bought EUR1.1640, down from EUR1.1646.
The euro was lower against the dollar, buying USD1.1621, down from USD1.1626. Versus the yen, the buck advanced to JPY156.31 from JPY155.54.
The yield on the US 10-year Treasury was quoted at 4.76% early Friday afternoon, widening slightly from 4.75% at the time of the London equities close on Thursday. The yield on the US 30-year Treasury stretched to 5.24% from 5.23%.
AJ Bell analyst Dan Coatsworth commented: "Having spent several days in the worry zone amid fears of growing inflationary pressures, markets have ended the week on a calmer note. Wall Street pushed forward on Thursday after Federal Reserve governor Christopher Waller hinted at a potential pause on interest rate hikes. He said if upcoming data confirmed inflationary pressures were easing, there might be a case to keep interest rates unchanged at the next meeting.
"Prior to his remarks, the market had expected up to three hikes by the end of 2026. Traders lowered the chance of a September rate hike from 63.2% to 50.4%, bringing a relief rally across US shares. That positive sentiment extended to much of Asia on Friday but Europe wasn't as upbeat."
In New York, the Dow Jones Industrial Average is called down 0.1%, the S&P 500 up 0.1% and the Nasdaq Composite 0.5% higher.
According to consensus cited by FXStreet, Friday's official jobs data is expected to show the US added 56,000 jobs in August, after shedding 23,000 in July.
Analysts at Deutsche Bank commented: "With expectations for a hike in the balance again, that's heightened the focus on today's US jobs report, which is out at 13:30 London time. In general, the labour market has been robust in the last few months. But the most recent jobs report for July was much weaker than expected, with payrolls unexpectedly contracting, along with downward revisions to the previous couple of months. So that cast further doubt on a September hike, and it was only thanks to Fed Chair Warsh's speech at Jackson Hole last week that investors had grown more confident of a September hike once again.
"For this report, our US economists are expecting nonfarm payrolls to rebound by +65k, with the unemployment rate holding steady at 4.1%. So if realised, that would cement the view that the labour market is holding up and keep the Fed's focus on inflation."
Trading higher in London, Vodafone rose 2.0% after Goldman Sachs lifted the telecoms company to 'buy' from 'sell'.
Renishaw added 5.1% after Bank of America raised it to 'buy' from 'underperform'.
Experian lost 3.7%. In a post on X, formerly known as Twitter, Federal Housing Finance Agency Director Bill Pulte accused the credit checking firm of overcharging customers in the US.
"Equifax, Experian, and TransUnion have been overcharging Americans for far too long. This will end soon. We are seriously considering bi-merge, and stronger solutions," Pulte said.
Elsewhere in London, Genel Energy shares slumped 14% as Norwegian oil and gas firm DNO ASA said it does not intend to make a takeover offer for the exploration and oil production company.
In late July, DNO approached Genel with a possible offer valuing the latter at 69p per share, or GBP202 million in total. Genel's board rejected the approach, but DNO said it remained willing to engage with the board.
Earlier this week, DNO made a USD5.214 per share offer for Edinburgh-based oil and gas company Capricorn Energy, trumping Genel's previously agreed offer of USD4.74 per share.
DNO on Friday said Genel's board "demonstrated no willingness to engage," and that Genel shareholders were consequently "denied the opportunity to consider a proposal that offered a substantial premium, certainty of value and an attractive liquidity event."
An ounce of gold traded at USD4,473.46 midday Friday, down from USD4,506.91 late Thursday. Brent fell to USD94.80 a barrel from USD96.83.
By Eric Cunha, Alliance News news editor
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