25th Sep 2026 12:10
(Alliance News) - Stock prices in London were higher at midday on Friday as hopes for progress towards reopening the Strait of Hormuz pushed oil prices lower, although Brent stayed above USD100, while global bond yields remained elevated.
The FTSE 100 index was up 17.39 points, 0.2%, at 10,697.38. The FTSE 250 was up 140.73 points, 0.6%, at 24,295.28, and the AIM all-share was up 2.90 points, 0.4%, at 787.86.
The Cboe UK 100 was up 0.2% at 1,063.69, the Cboe UK 250 was up 0.5% at 21,069.88, and the Cboe small companies was down 0.1% at 18,741.96.
In European equities on Friday, the CAC 40 in Paris was up 0.1%, while the DAX 40 in Frankfurt was up 0.7%.
US government borrowing costs continued to rise on Friday after a global bond sell-off intensified on Thursday, as investors increased bets on further interest rate hikes by the Federal Reserve.
The sell-off gathered momentum after S&P Global data on Wednesday showed US business activity expanding at its fastest pace in five years, alongside stronger inflationary pressures driven by higher energy prices.
The figures fuelled concerns that the US economy may be running too hot and that the Fed could need to tighten monetary policy further.
The 30-year Treasury yield climbed as high as 5.5% on Thursday, its highest level since 2004, while the benchmark 10-year yield touched 5.22%, its highest since 2007.
The yield on the US 10-year Treasury was quoted at 5.18% at midday Friday, widening from 5.11% at the time of the London equities close on Thursday. The yield on the US 30-year Treasury was quoted at 5.47%, widening from 5.45%.
The pound was quoted at USD1.3246 at midday Friday, higher than USD1.3214 at the London equities close on Thursday. Against the euro, sterling fell to EUR1.1621 from EUR1.1628 a day prior. The euro stood at USD1.1398, higher than USD1.1377 late Thursday. Against the yen, the dollar fell to JPY157.81 from JPY158.98.
Meanwhile, Iran has proposed a seven-day plan to reopen the Strait of Hormuz and restart talks with the US, Foreign Minister Abbas Araghchi said, according to US media.
Oil prices fell on hopes the proposal could lead to the reopening of the key energy shipping route. Brent was quoted at USD105.58 a barrel at midday Friday, down from USD107.25 late Thursday.
Araghchi said the proposal came through intermediaries and was conditional on meeting certain demands, which he said went no further than those agreed between Washington and Tehran in June.
Iranian state media reported that Tehran's conditions included the immediate lifting of the US naval blockade off the Iranian coast, the release of frozen Iranian assets and an end to the war on all fronts.
A White House official told CNN that discussions through mediators had been "positive and constructive". US and Iranian representatives held talks on Tuesday on the sidelines of the UN General Assembly, their first negotiations in months.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.2%, the S&P 500 up 0.3% and the Nasdaq Composite up 0.5%.
On the FTSE 100, Computacenter rose 3.3% to 5,415.00p, while 3i Group gained 2.7% to 2,686.50p.
AstraZeneca rose 1.4% after the US Food & Drug Administration granted priority review for Imfinzi in combination with enfortumab vedotin for a form of bladder cancer.
The Cambridge, England-based pharmaceutical company said the treatment is intended for patients with muscle-invasive bladder cancer who are ineligible for or have declined cisplatin-based chemotherapy.
AstraZeneca expects a regulatory decision during the fourth quarter of 2026.
At the other end of the blue-chip index, Ithaca Energy fell 4.4% to 283.00p, and BP lost 3.2% to 553.35p, tracking oil prices lower.
Babcock International fell 1.4% to 971.80p amid weakness in European defence stocks, while BAE Systems lost 1.3% to 1,967.25p. Bunzl was also down 1.3% at 2,653.00p.
On the FTSE 250, Harworth Group rose 4.8% to 186.50p after recommending that shareholders accept Peel Holdings' "best and final" takeover offer of 187p per share.
Raspberry Pi Holdings fell 11% to 675.50p, reversing some of Thursday's 20% jump following its record first-half performance.
Among smaller caps, Petra Diamonds jumped 13% to 6.52p.
Capricorn Energy rose 12% to 442.50p after backing a takeover by Genel Energy.
Pensana tumbled 25% to 45.40p after saying it anticipates an extension to the construction schedule for its Longonjo mine.
Safestay plunged 32% to 8.50p after swinging to an interim loss as revenue declined.
Still to come on Friday's economic calendar are US durable goods orders.
By Eva Castanedo, Alliance News senior economics reporter
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