Lunchtime market roundup: London down, NY to rise but Netflix slumps

Stock prices in London were largely on the decline on Friday afternoon, outperformed by European peers while also failing to replicate some of the confident strides seen in New York.

The S&P 500 hit a record high on Thursday and equities across the Atlantic are set to move slightly higher on Friday also, though Netflix is expected to be in the red.

AJ Bell analyst Russ Mould commented: ‘Crisis, what crisis? In forging ahead to new all-time highs on Thursday night, the S&P 500 has now increased by $1.5 trillion in value since the Iran war began.

‘The stock market has proved resilient through several crises over the past decade or more and we are yet to see huge evidence of a negative impact on company earnings from the situation in the Middle East. If a resolution can be found in the near term, then perhaps the market will have been right to see this as a blip rather than something which justifies a more significant derating of corporate valuations.’

The analyst continued: ‘Only time will tell, though sooner rather than later there will need to be evidence of Donald Trump’s repeated claims that the war will be ending soon coming to fruition.’

The FTSE 100 index was down 24.75 points, 0.2%, at 10,565.62 points. The FTSE 250 was down 21.07 points, 0.1%, at 22,758.43, though the AIM all-share was up 3.23 points, 0.4%%, at 801.08.

The Cboe UK 100 was down 0.3% at 1,052.65, the Cboe UK 250 was up 0.2% at 19,889.96, and the Cboe small companies was up 0.1% at 18,070.25.

In European equities on Friday, the CAC 40 in Paris added 0.3%, while the DAX 40 in Frankfurt was up 0.6%

A 10-day ceasefire between Israel and Lebanon came into effect this morning, while US President Donald Trump said that the war with Iran ‘should be ending pretty soon’.

French President Emmanuel Macron on Friday said he was concerned that the ceasefire ‘may already be undermined by ongoing military operations.’

‘I call for the safety of civilians on both sides of the border between Lebanon and Israel,’ he said on X. ‘Hezbollah must lay down its arms. Israel must respect Lebanese sovereignty and end the war,’ he added.

UK Prime Minister Keir Starmer will today chair a summit around 40 countries on reopening the Strait of Hormuz, though there will be no US attendance.

Scope Markets analyst Joshua Mahony commented: ‘Looking ahead, the possibility of an escalation in the conflict seems as likely as a deescalation, with weekend volatility less prevalent with each passing week.

‘For the time being there is a belief that we are moving in the direction of a potential deal, with Pakistan stating that a US-Iran deal is ’reachable’.’

The pound was quoted at $1.3523 midday Friday, down from $1.3532 at the London equities close on Thursday. Against the euro, sterling fell to €1.1467 from €1.1489.

The euro stood at $1.1794, rising from $1.1777 late Thursday. Against the yen, the dollar was trading at JP¥159.17, barely budging from JP¥159.16.

Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.3%, the S&P 500 up 0.2%, and the Nasdaq Composite 0.1% higher.

The yield on the US 10-year Treasury was quoted at 4.29%, unchanged from the London equities close on Thursday. The yield on the US 30-year Treasury was quoted at 4.92%, widening from 4.91%.

Brent oil was quoted at $96.27 a barrel at midday in London on Friday, down markedly from $98.39 late Thursday. Gold was quoted at $4,786.73 an ounce against $4,802.13.

In London, Intertek was on the up again, rising 3.6% after a 9.0% surge on Thursday. The London-based assurance, inspection, product testing and certification company confirmed Thursday that it rejected an ‘undervalued’ cash proposal by EQT.

At the other end, utilities were lower. SSE was down 6.1%, while British Gas owner Centrica fell 6.5%, amid energy supply worries stemming from the Middle East conflict.

On the FTSE 250, Workspace shares have plummeted 13%, after warning of a ‘substantial step down’ in trading profit.

The property investment firm said lower starting rents, the impact of disposals, higher debt costs, reduced capitalised interest and increased operating expenses would all restrict profit in financial 2027.

On AIM, shares in Optima Health were up 4.9% after it announced that it anticipates annual earnings to exceed market expectations.

The occupational health services provider expects its adjusted earnings before interest, taxes, depreciation and amortisation for the year ended March 31 to be 10% ahead of market expectations, which it puts at £18.1 million.

Over in New York, eyes will be on streaming service Netflix. The stock was down 9.8% in the pre-market dealings, after its second quarter sales forecast fell well short of expectations.

Netflix also said co-founder and Chair Reed Hastings will step down in June in order to focus on his philanthropy and other pursuits.

XTB analyst Kathleen Brooks commented: ‘Netflix looks like it will have a rough ride on Friday.

‘There were some pockets of weakness, including weaker forward guidance for revenues, and news that the co-founder of Netflix and current chair, Reed Hastings, would step down from his position in June. He has been with Netflix since the beginning, although he stepped back as CEO in 2023.’

Brooks continued: ‘This was unexpected news, and Hastings is seen as the DNA of the company. His vision changed the way the world watches television, and his disruptive style of leadership has been a lesson for American corporate culture this century. [The] Hastings departure from Netflix has jolted investors at an interesting time for the company. After pulling out of the race to buy Warner Brothers, Netflix may keep its balance sheet tough and flexible, but it will also face greater competition from a more muscular Paramount.’

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