20th Mar 2026 12:15
(Alliance News) - Stock prices in London were higher at midday on Friday, in a choppy day of trading as investors closely watched the price of oil, while UK borrowing costs hit their highest level since 2008.
The FTSE 100 index was up 13.32 points, 0.1%, at 10,076.82. The FTSE 250 was up 55.21 points, 0.3%, at 21,615.25, and the AIM all-share was down 1.81 points, 0.3%,
at 726.04.
The Cboe UK 100 was up 0.4% at 1,002.37, the Cboe UK 250 was 0.3% higher at 18,807.75, and the Cboe small companies was down 0.4% at 17,150.17.
In European equities on Friday, the CAC 40 in Paris was up 0.3%, while the DAX 40 in Frankfurt was 0.1% higher.
Sterling was at USD1.3394 at midday on Friday, up from USD1.3367 at the London equities close on Thursday. Against the euro, sterling fell to EUR1.1576 from EUR1.1597.
The euro was higher at USD1.1572 from USD1.1527. Against the yen, the dollar was up at JPY158.57 versus JPY158.09.
Stocks in London were higher early on Friday as the oil price steadied, but fell as the price of Brent spiked again. By midday, the FTSE 100 had recovered and edged higher.
Brent oil was trading lower at USD106.90 a barrel at midday on Friday from USD110.46 on Thursday.
Brent spiked earlier on Friday to USD111.00, after Axios reported that US President Donald Trump is mulling plans to occupy Iran's Kharg Island, in an effort to get ships passing through the key Strait of Hormuz again.
Earlier, crude had fallen to around USD105 after Israeli Prime Minister Benjamin Netanyahu said Iran was being "decimated" and that the war would end earlier than many feared.
Axios, citing "four sources with knowledge of the issue", said Trump wants the Hormuz waterway open and if he "has to take Kharg Island to make it happen, that's going to happen".
"If he decides to have a coastal invasion, that's going to happen. But that decision hasn't been made," a senior administration official told Axios.
The island is located some 15 miles off Iran's mainland's coast.
"We've always had boots on the ground in conflicts under every president, including Trump. I know this is a fixation in the media, and I get the politics, but the president is going to do what's right," another senior office told Axios, adding that no decision has been made yet.
Shares in FTSE 100 oil majors BP and Shell were down 2.8% and 0.8% respectively.
Meanwhile, UK borrowing costs hit their highest level since the 2008 financial crisis, as government borrowing figures added to fears of higher inflation.
According to the Office for National Statistics, net borrowing amounted to GBP14.33 billion in February, widened from GBP12.13 billion a year prior and swung from a surplus of GBP31.86 billion in January 2026.
It was the second-highest February borrowing figure since monthly records began in 1993, and was only behind GBP15.48 billion in 2021, in the midst of the Covid-19 pandemic.
Stocks in New York were called lower. The Dow Jones Industrial Average was called down 0.4%, the S&P 500 index 0.5% lower, and the Nasdaq Composite down 0.7%.
The yield on the US 10-year Treasury widened to 4.30% at midday on Friday from 4.27% at Thursday's close. The yield on the US 30-year Treasury widened to 4.87% from 4.84%.
Back in London, easyJet led the way on the FTSE 100 and climbed 3.2%. International Consolidated Airlines was up 1.6%, while Wizz Air was 2.1% higher on the FTSE 250.
Shares in Unilever gained 1.1% as it confirmed it has received an inbound offer for its Foods business, and has entered talks with McCormick & Co.
McCormick is a Maryland, US-based food ingredients and flavours company which owns brands including Frank's RedHot sauce and French's mustard.
Unilever said: "The board believes Foods is a highly attractive business, with a strong financial profile led by market-leading brands in growing categories and is confident in the future of the Foods business as part of Unilever."
On the FTSE 250 index, shares in JD Wetherspoon sank 14% after it said that annual profit could fall short of market expectations, as it grapples with higher costs and warned that there is "considerable pressure on consumer finances".
"There is clearly considerable pressure on consumer finances, combined with higher taxes, wages and energy costs for the hospitality industry. This may result in profits that are slightly below current market expectations. The forecast for year-end net debt remains unchanged," Chair Tim Martin said.
AJ Bell analyst Russ Mould said: "The management team are in a tricky spot – increase prices by too much and they undermine their value credentials and potentially alienate a portion of their customer base. They may take the view that absorbing some pain in the short term is a price worth paying to protect the brand.
"An outlook which is effectively a mild profit warning suggests that may be the approach which Wetherspoons takes. However, the backdrop remains unpredictable, and it is hard to say just how much it can shield its patrons from price increases, particularly as it needs to take account of a large debt pile."
On the AIM market, shares in TheWorks.co.uk jumped 18%.
The seller of arts and crafts, stationery, toys, and books said its website is "no longer sustainable" given its "relatively small and reducing revenue contribution and loss-making performance". The website will now "serve as a shop window" to its brand and stores in a move to a non-transactional website.
TheWorks said this will "sharpen" its focus on being a "successful bricks-and-mortar retailer" by reducing operating costs and freeing up capital to invest in the store business.
The company said that, despite exceptional closure costs of around GBP2 million, it is on track to deliver adjusted earnings before interest, tax, depreciation, and amortisation of GBP11.0 million in this financial year, in line with expectations.
TheWorks upgraded its guidance for the next financial year to adjusted Ebitda of GBP15.0 million from an earlier expectation of GBP12.7 million. The firm added that it is on track to deliver its medium-term Ebitda goal of at least GBP22.5 million by the end of the 2030 financial year.
Gold was higher at USD4,682.50 an ounce at midday on Friday from USD4,603.53 late Thursday.
Still to come on Friday's economic calendar are producer price index and retail sales figures for Canada.
By Michael Hennessey, Alliance News reporter
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