24th Apr 2026 09:08
(Alliance News) - Stock prices in London opened lower on Friday, amid ongoing uncertainty in the Middle East as the stalemate between the US and Iran in the Strait of Hormuz persisted, driving oil prices higher.
The FTSE 100 index opened down 36.80 points, 0.4%, at 10,420.21. The FTSE 250 was down 135.23 points, 0.6%, at 22,629.29, and the AIM all-share was down 4.83 points, 0.6%, at 797.30.
The Cboe UK 100 was down 0.6% at 1,036.74, the Cboe UK 250 was 0.7% lower at 19,688.76, and the Cboe small companies was down 0.2% at 18,181.22.
In European equities on Friday, the CAC 40 in Paris was 0.8% lower, while the DAX 40 in Frankfurt fell 0.1%.
Sterling was at USD1.3474 on Friday morning, down from USD1.3500 at the London equities close on Thursday. Against the euro, sterling was lower at EUR1.1528 from EUR1.1551.
The euro was a little lower at USD1.1691 from USD1.1708. Against the yen, the dollar was slightly higher at JPY159.68 versus JPY159.50.
Geopolitical tensions remained high amid an ongoing stalemate in the Strait of Hormuz, while the price of oil climbed higher above USD100 a barrel.
Brent oil was trading higher at USD106.28 a barrel on Friday morning from USD103.25 on Thursday.
US President Donald Trump vowed the US would destroy any vessel laying mines in the Strait of Hormuz but ruled out striking the country with a nuclear weapon, saying they "should never be allowed to be used by anybody".
"Iran, frustrated by Trump's blockade and public bashing, appears unwilling to return to the negotiating table," noted Swissquote analyst Ipek Ozkardeskaya.
In more positive news, Israel and Lebanon extended a ceasefire by three weeks, Trump announced, as he voiced hope for a historic three-way meeting soon and a potential peace deal.
However, Ozkardeskaya added: "Developed market yields are rising alongside oil prices, fueling inflation expectations, while equities remain hesitant near all-time highs."
Back in the UK, the volume of retail sales rose by 0.7% in March, following a revised 0.6% fall in February and a revised 1.8% rise in January, according to the Office for National Statistics.
Fuel sales jumped sharply on the month, as motorists stocked up on fuel as prices climbed. Total retail sales, excluding automotive fuel, rose by 0.2% on-month, in line with FXStreet-cited expectations.
Sales volumes, including automotive fuel, rose by 1.7% over the year to March 2026.
In Asia on Friday, the Nikkei 225 in Tokyo was up 1.0%. In China, the Shanghai Composite was 0.3% lower, while the Hang Seng Index in Hong Kong was up 0.3. The S&P/ASX 200 in Sydney was 0.1% lower.
In the US on Thursday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.4%, the S&P 500 0.4% lower and the Nasdaq Composite down 0.9%.
The yield on the US 10-year Treasury was quoted at 4.32% on Friday, widened from 4.29% on Thursday. The yield on the US 30-year Treasury advanced to 4.91% from 4.89%.
Back in London, shares in British American Tobacco led the way on the FTSE 100 as it climbed 2.4% after Morgan Stanley upgraded its rating on the stock to 'overweight' from 'underweight'.
Mondi shares sank 6.1% as it blamed lower prices and mounting costs stemming from the Middle East conflict for a sharp decline in profitability in the first quarter of 2026.
The Weybridge, England-based packaging firm reported that underlying earnings before interest, taxes, depreciation and amortisation, including forestry fair value, fell 27% to EUR212 million for the first quarter to the end of March, from EUR290 million a year earlier.
Describing first-quarter market conditions as challenging, Mondi noted that lower average selling prices and higher energy-related input costs towards the end of the first quarter offset stronger sales volumes.
"Against a backdrop of challenging market conditions, sales volumes increased, although lower selling prices and latterly, cost pressures linked to escalating geopolitical tensions, weighed on underlying Ebitda," Mondi Chief Executive Officer Andrew King said.
Shares in JD Sports Fashion were down 2.9% after the Financial Times reported that Andrew Higginson quit as chair after pushing for chief executive Regis Schultz to be ousted and failing to win unanimous backing for the move.
According to FT sources, Higginson made representations to members of the board that Schultz should be replaced as JD boss after a three-and-a-half-year tenure in which the sportswear business has reported slowing sales and struggled in its key North American market.
While some directors agreed with Higginson, it was not a unanimously held view, the sources told the FT.
On the FTSE 250 index, shares in Computacenter jumped 6.1% as it raised its outlook for the full year after a "strong" performance in the first quarter.
The Hatfield, England-based technology services provider said trading in the three months to March 31 was "significantly ahead" of the prior year, and "well above" its own expectations.
Looking ahead, the company said it now expects to deliver "much stronger performance in the first half of the year than previously anticipated", and guided a full-year performance "comfortably ahead of market expectations".
Computacenter said company compiled analyst consensus for 2026 include adjusted pretax profit of GBP291.3 million, with a range of GBP284.5 million to GBP297.1 million. In 2025, the company reported GBP272.0 million in adjusted pretax profit.
Gold was lower at USD4,692.23 an ounce early on Friday from USD4,731.39 late Thursday.
Still to come on Friday's economic calendar is the Michigan consumer sentiment index and Canadian retail sales data.
By Michael Hennessey, Alliance News reporter
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