14th Aug 2026 09:08
(Alliance News) - Stock prices in Europe opened mixed on Friday, but a rise for the software sector pushed SAP higher in Frankfurt and ensured the DAX 40 continued to outperform.
The FTSE 100 index opened down 10.09 points, 0.1%, at 10,762.58. The FTSE 250 rose 59.12 points, 0.2%, at 24,896.83. The mid-cap index has outperformed its blue-chip counterpart so far this month, rising 3.9%. The FTSE 100 has lost 0.9% so far in August.
The AIM all-share was up 0.94 of a point, 0.1%, at 801.82.
The Cboe UK 100 was flat at 1,068.83, the Cboe UK 250 was 0.3% higher at 21,676.79, and the Cboe small companies was up 0.1% at 19,097.80.
In European equities on Friday, the CAC 40 in Paris was up slightly, while the DAX 40 in Frankfurt was up 0.6%. The CAC is down around 0.7% so far this week, but the DAX is up 0.6%.
Leading the charge in Frankfurt, enterprise resource planning software vendor SAP rose 4.2%. The software sector shone following an 18% surge in Workday shares on Thursday in New York. Reuters reported that it was in talks to be taken over by private equity firm Silver Lake.
Workday has a market value of around USD51 billion.
The parties have held discussions about a potential deal in recent months, sources said. The talks are ongoing and there is no guarantee a deal will materialize, they added.
A software surge also filtered through to London. Workday partner and IT services provider Kainos shot up 3.9%.
Elsewhere, Sage and Relx rose 4.2% and 3.0%. The stocks have been among those hit by artificial intelligence worries hanging over the software sector so far this year.
In Tokyo, the Nikkei 225 ended up 0.6%. In China, the Shanghai Composite was flat, while the Hang Seng Index in Hong Kong was 1.1% lower. In Sydney, the S&P/ASX 200 closed 0.8% lower.
Sterling edged up to USD1.3509 on Friday morning, from USD1.3498 at the time of the London equities close on Thursday. Versus the euro, however, it faded to EUR1.1692 from EUR1.1701.
Against the dollar, the single currency traded at USD1.1549, up from USD1.1535. Against the yen, the dollar slipped to JPY159.24 from JPY159.33.
The yield on the 10-year US Treasury stretched to 4.66% on Friday from 4.64% on Thursday. The 30-year yield widened to 5.23% from 5.21%.
In the US on Thursday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.1%, the S&P 500 up 0.7% and the Nasdaq Composite up 0.8%. The S&P 500 hit a record level of 7,816.70 points, also setting a new closing high of 7,798.99 points.
Analysts at Deutsche Bank commented: "The biggest catalyst was a downside surprise in the US PPI inflation print, while lower oil prices gave the doves an extra tailwind, with Brent crude finally snapping a six-day winning streak. As a result, pricing for a September Fed hike fell to just 35% by the close, down from above 50% on the morning of Wednesday’s CPI release.
"That PPI release set the tone for the day, as it cemented the view after Wednesday's CPI that the Fed didn't need to rush into rate hikes."
US consumer price inflation data for July was in line with expectations, numbers on Wednesday showed, strengthening the case for a rate hold next month, though numbers for August could swing the pendulum back in favour of a hike.
The Bureau of Labor Statistics said US consumer prices rose 3.4% on-year in July, abating from a 3.5% increase in June. The reading was in line with consensus cited by FXStreet.
Data on Thursday showed the annual US producer price inflation rate slowed to 4.7% in July from 5.5% in June. The FXStreet-cited consensus was for a milder deceleration to 4.9% in July.
Gold faded to USD4,341.63 an ounce early Friday from USD4,369.95 late Thursday afternoon. A barrel of Brent rose to USD88.51 from USD87.87.
US Treasury Secretary Scott Bessent threatened Thursday to subject Iran to economic isolation "like the world has never seen before," adding that new measures are expected next week.
"It will be a combination of economic isolation, like the world has never seen before," Bessent told conservative television network Newsmax, adding that "the continued blockade in the Strait of Hormuz... will keep anything from going in or out of the Iranian ports."
"Watch this space for more announcements coming next week," he said.
Bessent described a two-pronged approach featuring financial pressure and a physical blockade of the ports.
Back in London, Aviva shares rose 0.5%. Aviva said it enjoyed a "strong" first half of 2026 and the insurer backed its longer-term outlook. Operating profit in the first half of the year increased 24% to GBP1.33 billion from GBP1.07 billion a year prior, the insurer said. Operating profit topped Visible Alpha consensus of GBP1.25 billion.
"Aviva reported better-than-expected operating results thanks to a beat in the [Property & Casualty] business, offset partially by a miss in Life," analysts at Peel Hunt commented. "The outlook is positive, with momentum in the P&C lines better than we expected."
GB Group slumped 22%. It cut its revenue growth aim, as it grapples with tough trading conditions in the Americas Identity arm. The identity verification and fraud prevention company said revenue for the year ending March 2027 is to rise between 1% and 3%, the outlook cut from mid-single digit growth previously.
"First quarter revenue in Americas Identity was only marginally below our plan, but growth has not improved in the second quarter as we have seen higher than expected volume attrition on a few material customers. While our sales pipeline remains strong, the time required to convert opportunities into recognised revenue given our normal sales cycle means the impact of this attrition is unlikely to be mitigated within the current financial year," the firm said.
"We will continue with the one-off GBP6 million investment announced in June to accelerate GBG Go's innovation roadmap and we are focused on mitigating the attrition headwind with strong cost control," it added.
Michael Page shares shot up 6.7%. UBS raised the recruiter to 'buy' from 'neutral'.
Cohort added 7.5%. The defence technology firm has won a deal worth EUR140.7 million from defence contractor Saab. Cohort's German subsidiary ELAC will work with Saab to deliver integrated sonar systems for the Polish Orka submarine programme.
"Work will commence immediately and deliveries will continue out to the mid-2030s. Alongside other recent wins across the group, the contract is expected to enhance the group's adjusted earnings per share in the following financial year and beyond," Cohort added.
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
RelxSage GroupAvivaGb GroupPageGroupCohort