Early market roundup: FTSE 100 higher as miners climb; Melrose slumps

London’s FTSE 100 index was on the up on Friday morning, outperforming continental peers, while the pound was slightly lower after a by-election blow to UK Prime Minister Keir Starmer.

Investors in London digested another batch of earnings, with Rightmove and Melrose bookending the FTSE 100 after their annual results. Elsewhere, Senior shot up as it revealed it has received M&A interest.

The FTSE 100 index was up 44.39 points, 0.4%, at 10,891.09 on Friday morning, trading around a record high. The FTSE 250 added 70.06 points, 0.3%, at 23,789.06, and the AIM all-share rose 3.27 points, 0.4%, to 818.50.

The Cboe UK 100 was up 0.3% at 1,083.60, the Cboe UK 250 added 0.2% at 20,991.81, and the Cboe small companies added 0.1% at 18,513.62.

The CAC 40 in Paris fell 0.2% while the DAX 40 in Frankfurt was flat.

In New York on Thursday, the Dow Jones Industrial Average ended slightly higher, the S&P 500 shed 0.5% and the Nasdaq Composite declined 1.2%.

In Tokyo, the Nikkei 225 ended 0.2% higher. In China, the Shanghai Composite was 0.4% higher, while the Hang Seng Index in Hong Kong was 1.0% higher. In Sydney, the S&P/ASX 200 added 0.3%.

The pound fell to $1.3490 on Friday from $1.3513 late Thursday, The euro rose to $1.1814 from $1.1792. Against the yen, the dollar faded to JP¥156.05 from JP¥156.20.

‘This could be a relatively quiet end of the week for the dollar as uncertainty over US-Iran tensions may prevent major directional shifts. In the UK, a by-election win by the Green Party spells more trouble for PM Keir Starmer, and is opening more downside risks for the pound,’ analysts at ING commented.

The Green Party has won its first ever parliamentary by-election in Gorton & Denton, dealing a bitter blow to UK Prime Minister Keir Starmer.

Labour’s defeat, trailing in third behind Zack Polanski’s Greens and Nigel Farage’s Reform UK in the previously rock-solid Greater Manchester constituency, will pile pressure on the prime minister.

Hannah Spencer, a councillor and plumber, emerged victorious for the Greens, with 14,980 votes and a majority of 4,402 votes.

Reform UK’s candidate Matt Goodwin got 10,578 votes, with Labour’s Angeliki Stogia trailing on 9,364, down from 18,555 in the 2024 general election, when the turnout was similarly high.

The yield on the US 10-year Treasury ebbed to 4.0% early Friday, from 4.03% at the time of the London equities close on Thursday. The 30-year yield slimmed to 4.66% from 4.68%. The 10-year yield is sitting around its tamest level since late-November.

ING analysts added: ‘The lack of major data releases is keeping Fed pricing stable and the two major risks of the past couple of weeks – Iran and AI jitters – have started to abate.

‘On the Fed side, we’ll hear from John Williams and Neel Kashkari, after some dovish-leaning comments by Austan Goolsbee yesterday. Still, markets are paying very little attention to Fedspeak at this stage, given data has simply failed to support any pricing for a rate cut in the next two meetings.’

According to the CME FedWatch Tool, there is a 96% chance the US central bank leaves rates at 3.50%-3.75% at its next decision on March 18. For April, the tool puts the odds of a old at 80%. Both probabilities have barely budged this week.

A barrel of Brent fell to $71.10 early Friday from $72.58 late Thursday. Gold edged up to $5,180.28 an ounce from $5,180.61.

Friday’s global economic calendar has a German inflation reading at 1300 GMT and US producer price data at 1330 GMT.

In London, Fresnillo added 3.4%. Endeavour Mining rose 1.9% and Anglo American climbed 2.6% as diggers were on the up.

Rightmove surged 6.5%, as the property portal reported improved annual results, lifted its dividend and announced a £90 million share buyback

Shares are still down 29% over the past 12 months.

Analysts at Peel Hunt commented: ‘The shares have been weighed down by broader AI concerns, but we see no evidence of any impact. We expect another solid year of growth, supported by further product development that should strengthen its market position.’

Melrose slumped 14%. The aerospace firm will buy back £175 million worth of shares in the next year, after ‘another strong performance’, which saw it beat profit consensus. Adjusted diluted earnings per share shot up 25% to 32.1p in 2025 from 26.4p in 2024, topping consensus of 31.6p.

Revenue improved 3.5% to £3.59 billion from £3.47 billion, topping consensus of £3.50 billion.

Adjusted operating profit surged 20% to £647 million and for 2026, it expects an outcome between £700 million to £750 million, at best growth of 16%, so slowing from 2025. At constant currency, adjusted operating profit was 23% higher in 2025.

It sees revenue between £3.75 billion to £3.95 billion, representing like-for-like growth of 10% at the mid-point, sharper than 2025’s like-for-like top-line hike of 8%.

Elsewhere, Senior jumped 19%. It is in talks with a suitor and said it has postponed a £40 million buyback,

The maker of components and systems for aerospace and defence, land vehicle, and power and energy customers said that last month, it received a preliminary, non-binding all-cash proposal from a possible bidder. This offer was rejected, with Senior deeming it undervalued the firm. Two higher proposals were made by the same bidder, the ‘the second of which was unequivocally rejected’.

It added: ‘Following the approaches described above, the board appointed Lazard and Jefferies to initiate discussions with a limited number of third parties regarding a possible offer for the entire issued and to be issued share capital of Senior, to determine the value that could potentially be achieved. Following a period of discussions with these other parties, the company confirms it has received two further, superior all-cash proposals from other potential offerors. Discussions with potential offerors remain ongoing.’

Senior at the end of last year set a £40 million buyback, but ‘mindful of the company’s regulatory obligations’, it has postponed the programme’s start. It had been due to kick off following its annual results, due to be announced on Monday.

Wizz Air shares slumped 8.1% after a filing showed a shareholder trimmed its stake in the firm. Indigo Hungary and Indigo Maple Hill, managed by Indigo Partners, sold a total of 10.0 million shares in the budget carrier at 1,250 pence each, £125 million in total.

The sellers now own 14.7 million Wizz shares, just over a 14% stake.

On the Aquis Exchange, Equipmake jumped 47%. The maker of electric motors, inverters and zero-emission electric drivetrains and power electronic systems said it has received further backing from heavy machinery maker Caterpillar.

Equipmake has entered into a £3 million senior secured convertible loan note with New York listing’s Caterpillar Venture Capital arm. It follows a £5 million strategic investment and development agreement with Caterpillar announced back in March.

‘Since Caterpillar’s £5 million strategic investment in Equipmake in March 2025 we have developed a close relationship with them. I am therefore delighted that they have recognised the value of this partnership through investing a further £3 million in the company. Having the backing of Caterpillar has helped position Equipmake as a credible partner to both customers and suppliers, as well as providing a natural route to market for our solutions,’ Equipmake CEO Ian Foley said.

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