25th Sep 2026 09:17
(Alliance News) - Stock prices in London opened higher on Friday, despite a further rise in US government borrowing costs, while oil prices fell on hopes Iran could reopen the Strait of Hormuz.
The FTSE 100 index opened up 38.03 points, 0.3%, at 10,718.02. The FTSE 250 was up 96.94 points, 0.4%, at 24,251.26, and the AIM all-share was up 1.92 points, 0.2%, at 786.88.
The Cboe UK 100 was up 0.3% at 1,065.48, the Cboe UK 250 was up 0.3% at 21,028.75, and the Cboe small companies was up 0.1% at 18,775.41.
In European equities on Friday, the CAC 40 in Paris was up 0.2%, while the DAX 40 in Frankfurt was up 0.2%.
US government borrowing costs pushed higher again on Friday following a global bond sell-off that deepened on Thursday, as investors ramped up bets on further interest rate rises by the Federal Reserve.
The sell-off accelerated after S&P Global data on Wednesday showed robust US business activity in September alongside stronger inflationary pressures caused by higher energy prices, fuelling concerns that the US economy may be running too hot.
The 30-year Treasury yield climbed as high as 5.5% on Thursday, its highest level since 2004, while the benchmark 10-year yield reached 5.22%, its highest since 2007.
The yield on the US 10-year Treasury was quoted at 5.17% early 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 5.46%, widening from 5.45%.
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 were lower, helped by the prospect of a reopening of the key energy shipping route. Brent was quoted at USD106.26 a barrel early Friday, down from USD107.25 late Thursday.
Araghchi said the proposal had been delivered through intermediaries and depended on certain conditions being met, 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.
On the FTSE 100, oil majors were among the fallers. Ithaca Energy lost 3.0%, while BP fell 2.4% as oil prices declined.
At the top of the blue-chip index, Computacenter rose 3.2%, and Smiths Group gained 2.3%.
United Utilities rose 0.6% after leaving its financial framework and guidance for the financial year ending March 31 unchanged, continuing to target regulatory returns of 10% to 11% during the AMP8 regulatory period.
The water utility said operational performance was in line with expectations and its capital programme continued to progress as planned. It remains on track to invest around GBP2 billion in financial 2027 and GBP11.5 billion across AMP8, supporting compound asset base growth of around 10%.
Separately, United Utilities submitted its response to Ofwat's 2026 cost change draft decision, seeking support for around GBP1 billion of investment to improve network resilience, add water and wastewater capacity and support economic growth in north-west England.
Its response includes GBP191 million of strategic infrastructure investment progressing through a gated mechanism and GBP79 million of asset-specific infrastructure to be funded directly.
On the FTSE 250, Harworth Group topped the index, rising 4.3% after Peel Holdings raised its takeover offer to a "best and final" 187 pence per share in cash, valuing the property regeneration company at around GBP631.7 million.
The new offer is 8.4% above Peel's previous 177.5p bid and represents a 30% premium to Harworth's closing share price on August 5, before the offer period began.
Harworth's board reversed its previous recommendation and now unanimously recommends shareholders accept the increased offer, after weighing the certainty of the cash proposal against the risks of pursuing its standalone strategy.
The 187p offer remains at a 10% discount to Harworth's diluted EPRA net disposal value of 208.8p per share at June 30.
Peel also agreed to acquire a further 72.1 million Harworth shares at 187p. Once those purchases settle, expected on September 29, Peel will own or have valid acceptances for around 52% of Harworth and expects the offer to become unconditional.
At the bottom of the mid-cap index, Raspberry Pi Holdings tumbled 11%, reversing some of Thursday's 20% jump.
The stock had rallied after Raspberry Pi said it was well placed for further rapid growth following a record first-half performance driven by strong demand, increased unit shipments and a favourable product mix.
Among smaller caps, Safestay plunged 32% after swinging to a first-half pretax loss of GBP2.1 million from a profit of GBP436,000 a year earlier.
Revenue fell to GBP8.4 million from GBP9.4 million, while administrative expenses increased to GBP7.9 million from GBP7.4 million and cost of sales rose to GBP1.5 million from GBP1.3 million.
The hostel operator said the trading environment remained challenging and it continued to be mindful of cost pressures. Forward bookings on September 22 stood at GBP3.7 million on a like-for-like basis, compared with GBP4.7 million in the first half of 2025, although Safestay said it remained positive about its long-term prospects.
Meanwhile, Capricorn Energy jumped 12%, while Genel Energy shares were down 2.1%.
Capricorn Energy, an oil and gas company with operations in Egypt, withdrew its support for its takeover by DNO Bidco, as it instead recommended a higher offer by Genel Energy.
Genel on Friday offered USD4.75 in cash plus a special dividend of 99 US cents, valuing Capricorn Energy at USD5.74 per share in total, or USD436 million.
Capricorn late last week had announced its support for a rival takeover offer from Oslo-based DNO at a value of around USD5.21 per share, or USD396 million. On Friday it announced the immediate withdrawal of its support, following Genel's higher offer.
The pound was quoted at USD1.3228 early Friday, higher than USD1.3214 at the London equities close on Thursday. Against the euro, sterling fell to EUR1.1617 from EUR1.1628 a day prior.
The euro traded at USD1.1377 early Friday, higher than USD1.1367 late Thursday. Against the yen, the dollar was quoted at JPY158.23 versus JPY158.98.
In Asia on Friday, the Nikkei 225 index in Tokyo closed up 1.3%. In China, the Shanghai Composite was closed for the Mid-Autumn Festival, while the Hang Seng index in Hong Kong ended 1.1% lower. The S&P/ASX 200 in Sydney closed down 0.4%.
In the US on Thursday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.3%, the S&P 500 marginally lower and the Nasdaq Composite also marginally lower.
Gold was quoted at USD4,279.30 an ounce early Friday, higher than USD4,252.84 on Thursday.
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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BPIthaca EnergySmiths GroupComputacenterUnited UtilitiesHarworth GpRaspberry PiSafestayCapricorn Energy PLCGenel Energy