Lunchtime market roundup: Shares higher ahead of US inflation data

Stock prices in London were higher on Friday afternoon as investors awaited key US inflation data; meanwhile Houthi fighters in Yemen seized a key Red Sea island as the Brent oil price remained above USD100 a barrel.

The FTSE 100 index was up 62.35 points, 0.6%, at 10,671.27. The FTSE 250 was up 103.00 points, 0.4%, at 23,988.94, and the AIM all-share was up 789.58 points, 0.2%, at 1.63.

The Cboe UK 100 was up 0.6% at 1,061.44, the Cboe UK 250 was up 0.4% at 20,787.59, and the Cboe small companies was marginally lower at 18,549.28.

In European equities on Friday, the CAC 40 in Paris was up 0.6%, while the DAX 40 in Frankfurt was up 0.7%.

The UK economy recorded stronger-than-expected growth in July, partly driven by investment in artificial intelligence, although soaring energy costs threaten to weigh on activity in the months ahead.

Gross domestic product expanded 0.4% in July, accelerating from growth of 0.3% in June, according to the Office for National Statistics. Economists had widely expected the economy to stagnate in July.

Growth in the services sector offset declines elsewhere, with the ONS highlighting strong activity among businesses involved in artificial intelligence and cloud computing.

However, rising energy costs threaten to squeeze the economy in the coming months as the ongoing US-Iran war disrupts global supplies.

Oil prices are on course to end the week above USD100 a barrel for the first time since mid-May, while wholesale natural gas prices have climbed to levels not seen for four years.

The supply squeeze caused by the war remains front and centre for financial markets, with investors increasingly concerned about the implications of elevated energy costs for economic growth and inflation.

Meanwhile, Houthi fighters in Yemen seized a key Red Sea island in the middle of the Bab al-Mandab strait, completing a push to take control of a waterway crucial to Saudi oil exports.

The fighting in Yemen has taken centre stage in the Middle East war, which erupted with US-Israeli strikes on Iran and prompted the Islamic republic to blockade another waterway crucial to global energy flows, the Strait of Hormuz.

Brent oil was quoted at USD103.61 a barrel at midday in London on Friday, down from USD105.51 late Thursday.

The pound was quoted at USD1.3505 at midday on Friday, compared with USD1.3532 on Thursday. Against the euro, sterling rose to EUR1.1650 from EUR1.1636 a day prior.

The euro stood at USD1.1591, down from USD1.1625. Against the yen, the dollar was trading at JPY153.95, down from JPY154.10.

On the FTSE 100, Games Workshop Group rose 2.5%, while Hiscox gained 1.8% and Investec added 1.8%.

At the other end of the blue-chip index, Sage Group fell 1.9%, London Stock Exchange Group lost 1.4%, and Compass Group declined 1.0%.

On the FTSE 250, XP Power was up 7.9% at the top of the index after Jefferies raised its rating to 'buy' from 'hold' and set a price target of 2,330p.

Among the mid-cap fallers, Gamma Communications lost 4.4%.

THG fell 3.0%, extending losses following its interim results on Thursday, while Harbour Energy declined 2.9% after BASF sold £350 million worth of shares in the oil and gas producer.

Pan African Resources fell 2.7% after saying a final investment decision for its tailings project in Soweto is expected in December.

Among smaller caps, East Star Resources rose 7.1% as the Kazakhstan-focused gold and copper explorer said its gold exploration joint venture with Endeavour Exploration, a subsidiary of Endeavour Mining, was moving into systematic exploration.

The partners have completed reconnaissance across 15 priority targets, submitted exploration licence applications covering more than 930 square kilometres and established an in-country team of geologists.

Everplay Group jumped 13% after the Wakefield, England-based video game developer and publisher said the Wardogs tactical first-person shooter sold more than one million copies on its first day of release on Steam Early Access on Thursday.

The game also reached more than 340,000 concurrent players on Steam. Everplay has a strategic partnership with Wardogs developer Bulkhead through its stake in Super Media Group.

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

The yield on the US 10-year Treasury was quoted at 4.95%, widening from 4.92%. The yield on the US 30-year Treasury was quoted at 5.36%, widening from 5.34%.

Gold was quoted at USD4,337.16 an ounce at midday on Friday, down from USD4,363.96 on Thursday.

Still to come on Friday's economic calendar are US consumer price inflation figures at 1230 GMT, with consensus expecting annual inflation of 3.4% in August, unchanged from July.

The US monthly budget statement is also due later on Friday.

Copyright 2026 Alliance News Ltd. All Rights Reserved.