Late market roundup: Stocks close up with new FTSE 100 record

The FTSE 100 ended an already record-breaking week at another new high on Friday, while oil prices have climbed as tensions between the US and Iran continue.

‘Two months in, it looks like 2026 could be a second bumper year in a row for investors putting their faith in UK stocks if current performance trends continue,’ said Russ Mould, investment director at AJ Bell.

The FTSE 100 index ended up 63.85 points, 0.6%, at 10,910.55, a record close. It had earlier hit a record intra-day high of 10,934.94, and is up 9.6% year-to-date.

The FTSE 250 ended up 38.15 points, 0.2%, at 23,757.15, and the AIM All-Share closed up 4.30 points, 0.5%, at 819.53.

For the week, the FTSE 100 rose 1.1%, the FTSE 250 was slightly higher, and the AIM All-Share climbed 0.9%.

The Cboe UK 100 was up 0.5% at 1,086.35, the Cboe UK 250 was 0.2% higher at 20,980.03, and the Cboe Small Companies Index advanced slightly to 18,507.60.

London’s gains came despite renewed losses on Wall Street as investors weighed stronger-than-forecast wholesale inflation data, and assessed rising tension between the US and Iran.

The Dow Jones Industrial Average was down 1.0%, the S&P 500 index was 0.6% lower, and the Nasdaq Composite declined 0.9%.

According to the US Bureau of Labor Statistics the producer price index rose 0.5% in January on-month, the same pace of growth as reported December.

The annual rate of growth cooled to 2.9% from 3.0%.

FXStreet consensus had forecast headline growth of 0.3% on-month and annual growth of 2.6%.

Excluding food and energy, PPI rose 0.8% on-month in January, surprisingly picking up pace from 0.7% in December. The annual rate of growth sped up to 3.8% from 3.3%.

FXStreet consensus forecast core PPI would rise 0.3% on-month giving an annual increase of 3.0%.

After folding in January CPI and PPI figures, Barclays estimates that core PCE inflation - the Federal Reserve’s favoured inflation gauge - rose 0.4% on-month and 3.1% on-year in January.

Oil prices jumped as Iran said that in order to reach a deal, the US will have to drop its ‘excessive demands’, tempering the optimism expressed after recent talks which had been seen as a last-ditch bid to avert war.

The Oman-mediated talks followed repeated threats from President Donald Trump to strike Iran, and with the US conducting its biggest military build-up in the region in decades.

Trump on February 19 gave Iran 15 days to reach a deal, and while Iran has insisted the discussions focus solely on its nuclear programme, the US wants Tehran’s missile programme, its ballistic missile capabilities, and its support for militant groups curtailed.

The Wall Street Journal reported on Thursday that Trump’s negotiating team would demand that Iran dismantle its three main nuclear sites and hand over all its remaining enriched uranium to the US.

On Friday, the US authorised the departure of non-emergency embassy staff from Israel, while growing fears of conflict spurred China to join other countries in warning its citizens to leave Iran ‘as soon as possible’. The UK too withdrew its embassy staff from Iran.

Brent oil traded higher at $72.71 a barrel on Friday afternoon, up from $72.58 at same time on Thursday, and sharply higher from $70.00 at the time of the equity close in New York.

The oil price strength supported BP, up 0.7%, and Shell, up 1.6%.

The geopolitical uncertainty gave a lift to the gold price, supporting Fresnillo, up 3.4%, and Endeavour Mining, up 2.3%.

But the US-Iran worries and the rising oil price put airlines under pressure. British Airways owner IAG was down 7.4%,despite strong annual results, and budget airline easyJet was down 2.6%.

Gold firmed to $5,235.52 an ounce on Friday from $5,180.61 on Thursday.

In European equities on Friday, the CAC 40 in Paris closed down 0.5%, while the DAX 40 in Frankfurt ended slightly lower.

The pound was lower at $1.3458 on Friday afternoon, from $1.3513 at the equities close on Thursday.

The euro stood higher at $1.1818, from $1.1792. Against the yen, the dollar was trading lower at JP¥156.05, compared to JP¥156.20.

The yield on the US 10-year Treasury narrowed to 3.98% on Friday from 4.03% on Thursday. The yield on the US 30-year Treasury trimmed to 4.64% from 4.68%.

London Stock Exchange Group rose 4.2%, and led blue-chip risers, on further reflection of Thursday’s results.

Bank of America played fears of AI disruption to LSEG’s business.

‘The market fails to differentiate between software and data providers like LSEG, where it is partnering with AI agents,’ BofA said.

Rightmove advanced 4.3% as it announced a total dividend for 2025 that was higher than expected, alongside a share buyback programme as it highlighted it entered 2026 ‘with confidence.’

The Milton Keynes, England-based online property portal said pretax profit climbed 12% to £290.0 million in 2025 from £258.4 million in 2024.

‘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,’ analysts at Peel Hunt said.

But Melrose plummeted 12% after its annual earnings.

Citi analyst Charles Armitage said the share price fall was an ‘over-reaction and mainly due to the increase in factoring from £338 million to £396 million.’

Melrose bears argued that as a result of the rise in factoring, the aerospace firm ‘actually’ produced £67 million of free cash flow last year, rather than the £125 million reported, and hence missed the £100 million plus guidance.

But Armitage explained that factoring ‘was in the £100 million [plus] guidance - this is not a miss.’

On the FTSE 250, Senior leapt 20% after it confirmed receipt of two cash bids, higher than offers the firm had previously turned down this year.

Boston, Massachusetts-based private equity investor Advent International subsequently confirmed it was one of the interested parties.

But it was another tough day for investors in Hays, which fell 9.6%.

The recruiter, which has seen its share price plummet 43% in the last 12 months, reported a decline in first-half earnings and said it has kicked off a search for a new boss, after Dirk Hahn’s immediate resignation as chief executive officer.

Finally, Wizz Air nosedived 8.7%, after Indigo Partners LLC reported the sale of a £125 million chunk of the low-cost carrier.

The biggest risers on the FTSE 100 were Diageo, up 76.50p at 1,662.50p, Rightmove, up 18.60p at 447.40p, BT, up 8.90p at 216.80p, London Stock Exchange Group, up 360.00p at 8,860.00p, and Fresnillo, up 136.00p at 4,240.00p.

The biggest fallers on the FTSE 100 were Melrose Industries, down 74.20p at 565.80p, IAG, down 33.60p at 423.70p, Hikma Pharmaceuticals, down 59.00p at 1,314.00p, Barclays, down 19.80p at 452.85p, and Intercontinental Hotels Group, down 4.25p at 137.50p.

Monday’s global economic calendar has a slew of manufacturing PMI reports plus UK mortgage approvals data.

Monday’s UK corporate calendar has full-year results from lender Bank of Ireland, distribution and services company Bunzl and medical technology firm Smith & Nephew.

Copyright 2026 Alliance News Ltd. All Rights Reserved.