19th Sep 2025 11:59
(Alliance News) - London stocks were mostly lower at midday on Friday, though the FTSE 100 remained in the green, while Wall Street is set for a muted open as investors await a call between US President Donald Trump and China's Xi Jinping later in the day.
The FTSE 100 index was up 8.05 points, 0.1%, at 9,236.16. The FTSE 250 was down 105.08 points, 0.5%, at 21,620.87, and the AIM All-Share was down 1.34 points, 0.2%, at 771.00.
The Cboe UK 100 was slightly lower at 924.44, the Cboe UK 250 was down 0.7% at 18,909.84, and the Cboe Small Companies was down 0.2% at 17,269.96.
"Alarm bells are ringing in the Treasury after new figures showed public finances to be in a worse state than expected. That's saying something, given expectations were already rock bottom," said AJ Bell analyst Russ Mould.
UK government net borrowing rose to GBP17.96 billion, from GBP2.82 billion in July. It was up on-year from GBP14.24 billion and is the loftiest August borrowing figure for five years. The latest figure was ahead of FXStreet's cited consensus, which expected a net borrowing figure of GBP12.5 billion.
Mould continued: "It makes Chancellor Rachel Reeves' job of plugging the black hole even harder and raises the likelihood of a swathe of uncomfortable decisions at November's budget. A drop in the pound and a spike in gilt yields was the financial markets' way of saying that the latest government borrowing figures make for grim reading."
UK retail sales, meanwhile, rose at a faster pace than expected in August, numbers from the Office for National Statistics showed Friday. Sales volumes perked up 0.5% in August from July. They had risen 0.5% in July from June, a growth rate downwardly revised from 0.6%.
The latest figures were expected to show a 0.4% monthly rise for August, according to FXStreet, so the data beat expectations.
Mould added: "Businesses are already showing signs of nervousness around potential tax changes at the budget, and that's causing many to delay investment or halt recruitment activity. The latest government figures will add to corporate uncertainty, and consumer confidence may also deteriorate.
"There is still another two months before the budget which is a long time to wait. The UK economy isn't exactly thriving at present and there is a real risk that activity weakens in the run-up to the big day on 26 November."
In European equities on Friday, the CAC 40 in Paris advanced 0.4%, while the DAX 40 in Frankfurt lost 0.2%.
The pound was quoted down at USD1.3503 at midday on Friday in London, compared to USD1.3556 at the equities close on Thursday. The euro stood lower at USD1.1760, against USD1.1786. Against the yen, the dollar was trading flat at JPY147.96 compared to JPY147.94.
Stocks in New York were called broadly flat. The Dow Jones Industrial Average was called down 0.1%, the S&P 500 index marginally higher, and the Nasdaq Composite up 0.1%.
"US stock futures are on the back foot in early trade, as investors have taken on a more cautious stance ahead of a highly anticipated call between President Trump and Chinese President Xi Jinping," commented Rostro analyst Joshua Mahony.
"Trump has fuelled optimism by suggesting a TikTok deal is close to completion, and even speculated that wider trade discussions between the two largest economies were "pretty close to a deal". However, he also downplayed expectations for a breakthrough, noting the US may simply extend the current tariff truce, which he described as offering "pretty good terms"."
The yield on the US 10-year Treasury was quoted at 4.13%, stretching from 4.11%. The yield on the US 30-year Treasury was quoted at 4.74%, widening from 4.73%.
Brent oil was quoted lower at USD67.00 a barrel at midday in London on Friday from USD67.09 late Thursday. Gold was quoted marginally higher at USD3,655.47 an ounce against USD3,654.51.
Remaining in the lead on London's FTSE 250 around midday, Spire Healthcare rose 16%.
The London-based private healthcare provider said it was reviewing options for the business, including a potential sale of the company. "This process is highly preliminary and no decision has been made regarding whether any such option will be pursued at this stage," Spire explained.
The firm said it believes that its freehold property and "a well invested asset base", among others, are not yet reflected by the market in full. Therefore, it actively gauges appropriate action that could drive long-term shareholder value.
Spire said: "The company is not in receipt of any approaches and is not in discussions with any parties in respect of a potential sale of the company at the time of this announcement."
At the other end, Geo Exploration fell 21%.
The Australia-based oil and gas exploration company focused on Africa and the Mediterranean said drilling was "progressing well", with drill hole JUD001 completed on Monday.
Its drill rig has now been moved to the second prepared pad and drilling at JUD002 is underway. Drill core from JUD001 will be dispatched to a laboratory "in the coming days", with assay results expected during the final quarter of 2025.
Insig AI shed 13%.
The London-based data science and machine learning firm said it was excited by prospects of its existing business and the potential of what it could deliver at scale by investing in new capital, as annual loss narrowed.
Pretax loss narrowed to GBP6.1 million in the financial year ended March 31 from GBP17.7 million a year prior. Revenue climbed 43% to GBP529,509 from GBP369,860, while administrative costs decreased to GBP2.0 million from GBP2.6 million. Impairments came in sharply lower at GBP4.4 million from GBP15.3 million.
By Emily Parsons, Alliance News reporter
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