Early market roundup: FTSE 100 beats peers in Paris and Frankfurt

London’s blue chip index performed better than its peers in Paris and Frankfurt on Friday morning, amid tech-led softness seen in US futures.

The FTSE 100 index opened down 8.08 points, 0.1%, at 10,352.24. The FTSE 250 was down 11.33 points, 0.1%, at 23,290.43, and the AIM all-share was down 2.60 points, 0.3%, at 805.66.

The Cboe UK 100 was up 0.1% at 1,028.78, the Cboe UK 250 was up 0.3% at 20,045.92, and the Cboe small companies was up 0.2% at 18,894.14.

In European equities on Friday, the CAC 40 in Paris was down 0.2%, while the DAX 40 in Frankfurt was down 0.3%.

The FTSE 100 was relatively resilient, escaping the brunt of the tech-led weakness seen in US futures. London’s benchmark index, with its lower weighting to high-growth technology names, was less exposed to the selling pressure that weighed on US markets.

In the UK housing market, house prices edged lower in May, according to Halifax, as uncertainty linked to developments in the Middle East continued to weigh on affordability and buyer confidence.

The Halifax house price index showed average UK house prices fell 0.1% month-on-month in May to £298,806 from £299,251 in April, matching April’s decline and in line with FXStreet-cited consensus.

On an annual basis, house price growth ticked up slightly to 0.5% in May from 0.4% in April.

Amanda Bryden, head of mortgages at Halifax, said property prices continued to reflect uncertainty surrounding the Middle East conflict.

‘Despite recent cuts to mortgage rates, higher inflation expectations have kept borrowing costs above the level seen at the start of the year, continuing to stretch affordability for many buyers and temper demand,’ she said.

The pound was quoted at $1.444 early Friday, higher than $1.3436 at the London equities close on Thursday. Against the euro, sterling slipped to €1.1551 from €1.1558 a day prior.

The euro traded at $1.1633 early Friday, higher than $1.1624 late Thursday. Against the yen, the dollar was quoted at JP¥159.92 versus JP¥159.99.

Within the FTSE 100, Sainsbury led the index, up 2.3%. At the other end, Hiscox fell 2.34%, Halma declined 2.13% and Scottish Mortgage Investment Trust was down 2.12%.

There was a trio of double-digit share price moves across the FTSE 250 and smaller-cap names, driven by two M&A developments and one strong earnings outlook.

Raspberry Pi surged 19% to the top of the FTSE 250 after saying profitability in the six months ending June 30 is materially ahead of the prior year.

The Cambridge-based manufacturer of low-cost computers cited sales of more than 4 million units, a favourable product mix and the use of lower-cost DRAM inventory accumulated in 2025.

The company expects adjusted Ebitda of at least $38 million for the first half and now forecasts full-year Ebitda will be significantly ahead of current market expectations of $42.0 million.

While demand remains robust despite DRAM-related price increases, Raspberry Pi said unit economics are likely to moderate in the second half as lower-cost memory inventory is depleted. It added that it will focus on gaining market share and strengthening customer relationships while securing inventory for 2026 production goals.

At the bottom of the FTSE 250, Bodycote plunged 10% after Apollo Global Management said it would not make a takeover offer for the thermal processing engineering firm.

Late last month, Bodycote said it had received a conditional takeover proposal from Apollo. On Friday, the New York-based private equity group confirmed it does not intend to make a firm offer, without giving a reason.

‘Apollo continues to hold Bodycote and its management team in high regard, is appreciative of the discussions with them and Bodycote’s board of directors, and would like to thank them for their time and consideration of the proposal,’ Apollo said.

Bodycote responded that its board ‘has strong confidence in Bodycote’s potential and its strategy to create a high-performing, resilient business with attractive growth prospects’.

Among smaller caps, Evoke jumped 15% after agreeing to a £243.1 million takeover by Bally’s Intralot SA. Shareholders will receive 0.537 new Intralot shares for each Evoke share, valuing the Gibraltar-based owner of William Hill and 888 at 52p per share.

Investors may alternatively opt for a 52p-per-share cash offer, subject to a £117.1 million cap.

The Evoke board unanimously recommended the deal, which follows a strategic review launched in December after the UK government’s budget increased duties on online sports betting and casino gaming. Evoke had previously warned that the measures could add £125 million to £135 million to its annual tax bill.

Intralot had made five proposals during the review, starting with an indicative 32p-per-share approach.

In Asia on Friday, the Nikkei 225 in Tokyo closed down 1.3%. In China, the Shanghai Composite fell 0.7%, while the Hang Seng index in Hong Kong lost 1.1%. The S&P/ASX 200 in Sydney ended 0.7% lower.

Fresh strikes were reported in Lebanon just hours after Israel and Lebanon agreed on Wednesday to implement a ceasefire, conditional on an end to attacks by Hezbollah. Hezbollah is not a signatory to the agreement, and the leader of the Iran-backed group has rejected the pact.

Meanwhile, US President Donald Trump said he would be open to meeting Iran’s new supreme leader if a deal to end the war can be reached. He also claimed that ‘progress has been made’ in efforts to halt fighting in Lebanon.

Brent oil was trading at $95.40 a barrel early Friday, up from $94.88 late Thursday.

In the US on Thursday, Wall Street ended mostly higher, with the Dow Jones Industrial Average up 1.7%, the S&P 500 up 0.4% and the Nasdaq Composite marginally lower.

The yield on the US 10-year Treasury was quoted at 4.46%, widening/narrowing from 4.47%. The yield on the US 30-year Treasury was quoted at 4.97%, unchanged from Thursday.

Gold was quoted at $4,463.30 an ounce early Friday, down from $4,471.69 on Thursday.

Still to come on Friday’s economic calendar are eurozone gross domestic product figures. In North America, investors will be watching US nonfarm payrolls and the US unemployment rate for May, alongside Canadian unemployment data and the Ivey PMI.

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