(Alliance News) – Stock prices in London were mixed at midday on Friday, with the FTSE 100 marginally lower amid weakness in mining stocks but strength in the defence space.
The FTSE 100 index was down 2.43 points, marginally lower, at 10,236.44. The FTSE 250 was up 41.55 points, 0.2%, at 23,320.82, and the AIM All-Share was up 0.76 points, 0.1%, at 805.24.
The Cboe UK 100 was down 0.1% at 1,024.03, the Cboe UK 250 was up 0.1% at 20,401.62, and the Cboe Small Companies was down 0.2% at 18,067.73.
UK stocks opened weaker, in line with European equity benchmarks, with the FTSE 100 weighed down by miners and oil companies.
At the top of the FTSE 100, however, defence-oriented stocks were in demand. BAE Systems led the index, up 2.0%, followed by Babcock, up 1.4%, and Rolls-Royce, up 1.4%.
Meanwhile, miners Rio Tinto and Glencore traded 1.5% and 1.3% lower, respectively, amid a slightly lower gold price.
“Investors have been kept on their toes year-to-date with non-stop geopolitical issues, and mixed messages from the business world. A quieter day on the corporate reporting calendar gave investors a chance to catch their breath and take stock of events,” said Dan Coatsworth, head of markets at AJ Bell.
“European indices quietened down…Gold miners and defence stocks have been winning trades year-to-date, repeating a trend that ruled in 2025. Investors have felt reassured parking their money in these areas given a backdrop of uncertainty and geopolitical tensions. At some point, they will need to think more about what could unfold in 2026 and where best to put their money.”
In European equities on Friday, the CAC 40 in Paris was down 0.4%, while the DAX 40 in Frankfurt was down 0.1%.
The pound was quoted at USD1.3409 at midday on Friday in London, compared to USD1.3388 at the equities close on Thursday. The euro stood at USD1.1620, higher against USD1.1607. Against the yen, the dollar was trading at JPY159.08, higher compared to JPY158.48.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.1%, the S&P 500 index up 0.3%, and the Nasdaq Composite up 0.6%.
The yield on the US 10-year Treasury was quoted at 4.18%, widening from 4.14%. The yield on the US 30-year Treasury was quoted at 4.80%, unchanged.
“On a quiet Friday, it is worth talking about the release [on Thursday] of US Treasury TIC data for November,” said Chris Turner from ING.
“The main takeaway is that foreigners continue to pour money into US asset markets. The TIC release is a volatile data set, but looking at the rolling 12-month average, in November the net foreign purchase of US assets was around USD100 billion per month – compared to around USD25 billion in the summer of 2024.”
Breaking with the US, Canada has agreed to cut its 100% tariff on Chinese electric cars in return for lower tariffs on Canadian farm products, Prime Minister Mark Carney said.
Carney made the announcement after two days of meetings with Chinese leaders. He said there would be an initial cap of 49,000 vehicles on Chinese EV exports to Canada, rising to 70,000 over five years.
China will reduce its tariff on canola seeds, a major Canadian export, from about 84% to around 15%, Carney told reporters.
“It has been a historic and productive two days,” Carney said, speaking outside against the backdrop of a traditional pavilion and a frozen pond at a Beijing park. “We have to understand the differences between Canada and other countries, and focus our efforts to work together where we’re aligned.”
Earlier on Friday, Carney and Chinese leader Xi Jinping pledged to improve relations between their two nations after years of acrimony.
Back in London, Pearson was the biggest faller on the FTSE 100, down 4.0%, after Barclays cut its price target to 1,070 pence from 1,175 pence, while maintaining an ‘equal weight’ rating.
Pearson shares have fallen 14% since Wednesday, following a trading update that lacked guidance on 2026 performance and confirmed the loss of a US student assessment contract in New Jersey, which will impact the first half of the year.
In an environment of mounting concern over AI’s potential to disrupt Pearson, the update failed to offer the reassurance investors were seeking.
Next was the second-biggest faller, down 3.4%, on the day it said the redemption of B shares issued under its previously announced capital return scheme will take place on Friday.
On the FTSE 250, Ninety One said assets under management rose 5.1% to GBP159.8 billion at December 31 from GBP152.1 billion at September 30, and were up 23% from GBP130.2 billion a year earlier.
Among smaller caps, GCM Resources fell 19% after the London-based mining company focused on the Phulbari coal and power project in Bangladesh raised around GBP1.0 million through a placing of 16.7 million new shares at 6.0 pence, a discount of about 20% to the prior close.
Proceeds are earmarked for working capital as the company continues to progress the Phulbari coal and power project, with Clear Capital Markets acting as sole bookrunner.
Wellnex Life rose 13% after saying first-half financial 2026 earnings before interest, tax, depreciation and amortisation improved by USD2.4 million year-on-year, with gross margin rising to 31% from 23%.
December 2025 Ebitda increased by USD700,000 on year, and the group operated at breakeven by the close of the second quarter.
The Melbourne-based consumer healthcare products company said its Pain Away brand recorded quarterly sales of USD3.3 million in the second quarter, with gross margin improving by 7.6%.
Brent oil was quoted at USD64.51 a barrel at midday on Friday, up from USD63.55 late Thursday. Gold was quoted at USD4,613.40 an ounce, down from USD4,616.76.
Still to come on Friday’s economic calendar are US industrial production figures.
By Eva Castanedo, Alliance News reporter
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