Stocks in Europe gave back some gains made this week on Friday morning, following the Dow Jones Industrial Average into the red which had closed lower on Thursday, while the UK and Australia announced they will sign a 50-year commitment to their nuclear-powered submarine pact with the US.
The FTSE 100 index opened down 34.44 points, 0.4%, at 9,103.93. The FTSE 250 was down 80.99 points, 0.4%, at 22,074.42, and the AIM All-Share was down 0.79 points, 0.1%, at 776.08.
The Cboe UK 100 was down 0.4% at 908.60, the Cboe UK 250 was down 0.4% at 19,396.37, and the Cboe Small Companies was slightly lower at 17,652.84.
In European equities on Friday, the CAC 40 in Paris sank 0.5%, while the DAX 40 in Frankfurt fell 0.8%.
UK retail sales improved in June following record-setting warm weather but fell short of expectations, the Office for National Statistics reported on Friday.
Total retail sales volumes rose 0.9% in June, compared to a fall of 2.8% in May, the latter downwardly revised from a decline of 2.7%. Sales fell short of an FXStreet-cited consensus for a 1.2% rise, however.
Sales volumes were 1.7% higher over the year to the end of June, and were up 0.2% on-quarter for the three months to the end of June.
The ONS noted that England had its warmest June on record this year, according to the Met Office climate summaries, and the second warmest for the UK as a whole.
The pound was quoted lower at $1.3477 early on Friday in London, compared to $1.3571 at the equities close on Thursday. The euro stood up at $1.1757, against $1.1737. Against the yen, the dollar was trading higher at JP¥147.36 compared to JP¥146.33.
Mirriad Advertising shares were up 11% on Friday morning in London.
The London-based advertising and product placement firm has agreed a services deal with Middle Eastern advertising sales houses firm MBC Media Solutions.
Mirriad will provide in-video advertising to MBC to enable non-intrusive advertising solutions for MBC group’s subscription video on demand and linear content. The agreement is for an initial two-year term and will result in around £370,000 in revenue per year for Mirriad.
Mirriad also added that revenue for the first half of the year was around £200,000, split ‘broadly equally’ between the US and Europe, Middle East & Africa regions. The firm had reported £390,000 in first-half revenue the year before, which had declined from £592,000 in financial 2023.
Mitchells & Butlers was up 1.9%.
The Birmingham, England-based operator of restaurants and pubs said like-for-like sales growth in the year to date is 4.5%, boosted by 5.0% growth in the third quarter which benefitted from Easter and sunny weather.
Like-for-like food sales growth in the three months to July 19 was 4.9%, which drink sales grew 4.8%.
Chief Executive Officer Phil Urban said: ‘The business continues to perform strongly, enabling us to meet the cost challenges facing the sector with confidence. We will remain focused on our Ignite programme of initiatives and our successful capital investment programme, driving cost efficiencies and increasing sales.
‘With the unique strengths of our business, including a diverse portfolio of established brands, value proposition and enviable estate locations, we believe we are positioned to continue to grow profitability and market share.’
At the other end, Marshalls was the biggest loser on the FTSE 250, down 20%.
The Yorkshire, England-based landscaping products maker said revenue for the six months to June 30 was £319 million, rising 3.9% from £307 million the year before. Volume growth was ‘partially offset’ by weaker pricing and product mix, the firm explained.
‘However, activity levels in our key end markets softened from the end of May, and the Board does not currently see any immediate catalyst for improvement in these for the remainder of 2025,’ Marshalls added.
As a result, Marshalls reduced its full-year guidance and now expects adjusted pretax profit between £42 million and £46 million. The company had reported £52.2 million in adjusted pretax profit in 2024.
In Asia on Friday, the Nikkei 225 index in Tokyo lost 0.9%. In China, the Shanghai Composite shed 0.3%, while the Hang Seng index in Hong Kong faded 1.0%. The S&P/ASX 200 in Sydney closed down 0.5%.
In the US on Thursday, Wall Street ended mixed, with the Dow Jones Industrial Average losing 0.7%, the S&P 500 rising 0.1% and the Nasdaq Composite gaining 0.2%.
Britain and Australia said Friday they will sign a 50-year commitment to their nuclear-powered submarine pact with the US, seeking to bolster a deal that Washington has thrown into doubt.
The two countries cast their pledge as a historic treaty but gave few details beyond saying it would help economic cooperation and ‘underpin’ the existing, three-nation AUKUS pact.
Under AUKUS, Britain will eventually develop a new class of nuclear-powered attack submarines, the SSN-AUKUS, to enter service from the late 2030s.
In a government statement, Britain repeated previously released figures saying that the AUKUS submarine programme would lead to the creation of 21,000 UK jobs. It said the submarine programme was expected to be worth ‘up to’ £20 billion in British exports over the next 25 years.
In the US, critics question why Washington would sell nuclear-powered submarines to Australia without stocking its own military first.
The yield on the US 10-year Treasury was quoted at 4.41%, widening from 4.40%. The yield on the US 30-year Treasury was quoted at 4.95%, stretching from 4.94%.
Brent oil was quoted at $69.49 a barrel early in London on Friday from $68.24 late Thursday.
Gold was quoted lower at $3,353.48 an ounce against $3,412.38.
Still to come on Friday’s economic calendar, US durable goods orders figures.
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