Lunchtime market roundup: FTSE 100 closer to 11,000 but IAG dives

Stock prices in London were mostly higher on Friday midday, however British Airways parent IAG saw its shares fall after publishing 2025 results; meanwhile investors await US producer price index inflation data.

‘The FTSE 100 is now less than 1% away from hitting 11,000, suggesting the milestone is perfectly in reach in a matter of days or hours rather than months,’ commented AJ Bell’s Russ Mould. ‘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.’

The FTSE 100 index was up 39.66 points, 0.4%, at 10,886.36. The FTSE 250 was up 63.98 points, 0.3%, at 23,782.98, and the AIM all-share was up 4.50 points, 0.6%, at 819.73.

The Cboe UK 100 was up 0.2% at 1,082.71, the Cboe UK 250 was up 0.3% at 21,008.70, and the Cboe small companies was up marginally at 18,509.20.

In UK news, house sales recorded their first ‘significant’ decrease in January since last summer, according to HM Revenue & Customs.

94,680 home sales were recorded in January, ‘marginally’ lower [less than 1%] than the 95,430 in January last year, but 5% lower than December 2025.

The report said: ‘Figures for seasonally adjusted residential transactions in January 2026 are 5% lower, falling from 99,710 in December 2025 to 94,680 in January 2026. This marks the first significant decrease in transactions, following a period of stability since summer 2025.’

Among the many financial results published as February draws to a close, International Consolidated Airlines Group on the FTSE 100 fell 5.9% despite striking an optimistic tone in its 2025 report.

The Madrid-based airline operator said operating profit before exceptional items grew by 13% on-year to €5.02 billion in 2025, beating company-compiled consensus of €5.01 billion. Pretax profit shot up 26% to €4.51 billion, and revenue improved 3.5% to €33.21 billion.

IAG announced a €0.05 per share final dividend, down from €0.06 a year prior, but this took its full year payout to €0.098, up from €0.09.

‘British Airways-owner IAG is flying high after yet another slick performance,’ Mould remarked. ‘It has grown sales, profits and operating margins, improved returns on the money it invests in the business, and forward guidance is for more of the same...It’s hard to fault the latest set of results, but the market seems to want more, judging by the fairly muted share price reaction.’

On the FTSE 250, Tritax Big Box REIT edged up 0.1% after reporting its annual results.

Net rental income increased 11% on-year to £305.3 million in 2025, with the firm highlighting ‘record rental reversion’ and boosting its total dividend by 4.4% to 8.00p per share. However, pretax profit fell around 19% to £363.3 million.

On AIM, Hardide jumped 22%.

The Bicester, England-based surface treatment technology firm extended its gains after a 38% jump on Thursday, when it said it had secured £1.8 million of new orders from a major North American energy sector customer.

Directa Plus lost 3.9%, despite announcing advanced discussions with its long-standing substantial shareholder, Nant Capital LLC, over the terms of a non-dilutive potential loan of €4 million.

The producer and supplier of graphene nanoplatelets needs to cover additional funding to support future growth plans.

In European equities on Friday, the CAC 40 in Paris was down 0.1%, while the DAX 40 in Frankfurt was up 0.1%.

The pound was quoted lower at $1.3474 at midday on Friday in London, compared to $1.3513 at the equities close on Thursday. The euro stood at $1.1800, higher against $1.1792. Against the yen, the dollar was trading lower at JP¥155.94 compared to JP¥156.20.

Stocks in New York were called lower. The Dow Jones Industrial Average was called down 0.7%, the S&P 500 index down 0.6%, and the Nasdaq Composite down 0.6%.

The yield on the US 10-year Treasury was quoted at 3.99%, narrowing from 4.03%. The yield on the US 30-year Treasury was quoted at 4.65%, narrowing from 4.68%.

Brent oil was quoted lower at $72.37 a barrel at midday in London on Friday from $72.58 late Thursday.

Gold was quoted higher at $5,181.19 an ounce against $5,180.61.

‘Persistent tensions in Eastern Europe continue to reinforce gold’s appeal. Meanwhile, negotiations between Washington and Tehran have shown tentative signs of progress, yet the diplomatic path remains fragile,’ commented DHF Capital’s Bas Kooijman. ‘Any setback could swiftly revive risk aversion and amplify demand for safe-haven assets...The recent implementation of a new 10% global tariff regime by the US administration injects another layer of uncertainty, favouring the bullion.

‘However, monetary policy expectations could weigh on the gold market. Recent Federal Reserve commentary suggests that rate cuts are still dependent on further disinflation.

‘Consequently, market participants will be closely monitoring today’s PPI data, as this could reshape expectations for monetary policy easing in 2026 and influence gold’s near-term trajectory.’

Still to come on Friday’s economic calendar, as well as the US PPI reading, there is consumer inflation from Germany and gross domestic product data from Canada.

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