The FTSE 100 was steady on Friday as global markets continue to try and unpick the latest movements in the Middle East.
Reports that Tehran and Washington have agreed a framework for a 60-day extension to the ceasefire, which would facilitate the reopening of the Strait of Hormuz and enable fresh negotiations over Iran’s nuclear programme, have engendered some positivity.
But there remain conflicting noises about whether the deal will get sign-off from President Trump.
Oil prices have retreated sharply, government bond yields are in check, while Asian stocks and European shares enjoyed decent gains, with the UK market held back by its oversized exposure to the energy sector.
Retail stocks were firmly on the back foot in London to reflect ongoing concern about the pressures facing household budgets in the UK and the knock-on effect on consumer spending.
Ocado
Online groceries specialist Ocado delivered some much-needed good news on Friday, unveiling an agreement with Asda to support an upgrade of the latter’s web-based platform.
For Asda, this deal may give it some heft to take on Tesco and Sainsbury’s at a time when its position in the UK groceries market is looking fragile, while for Ocado it is a ray of light after a difficult period for the business.
It still feels a world away from the idea Ocado could become a global leader, licensing its platform to help supermarkets around the world set up their own web-based solutions, a story which really captured the imagination during the pandemic. Particularly given this deal follows a major setback with its big US partner Kroger last year.
Despite a healthy bump today, the shares still sit more than 90% below the all-time highs achieved in 2020 when excitement around the stock and the potential for global growth hit fever pitch.
Management at first blamed Covid restrictions for preventing it from meeting companies to agree contracts at the pace the market was hoping for. In the intervening period, the company has been plagued by operational issues, a patent dispute and surging costs.
Long-standing shareholders will hope this is the first step in a less grandiose but still meaningful growth story.
Russ Mould: Investment Director
Russ Mould is AJ Bell's Investment Director. He has a Master's degree in Modern History from the University of Oxford and more than 30 years' experience of the capital markets.
He started out at Scottish...
