(Alliance News) – Stock prices in London opened slightly higher on Friday, as markets steadied following a sharp US and Asian sell-off sparked by renewed artificial intelligence fears, while investors digested fresh economic signals from Europe and awaited US inflation data.
The FTSE 100 index opened up 11.32 points, 0.1%, at 10,411.16. The FTSE 250 was up 37.07 points, 0.2%, at 23,341.54, and the AIM all-share was up 1.07 points, 0.1%, at 812.23.
The Cboe UK 100 was up 0.1% at 1,037.05, the Cboe UK 250 was up 0.3% at 20,695.41, and the Cboe small companies was up 0.2% at 18,707.33.
In European equities on Friday, the CAC 40 in Paris was down 0.3% while the DAX 40 in Frankfurt was marginally higher.
Sentiment in Europe followed talks among EU leaders on Thursday, where they pledged to press ahead with reforms aimed at reviving the bloc’s sluggish economy, even as divisions remained over proposals for joint debt issuance.
Leaders acknowledged the urgency of reducing dependencies on external powers such as China and the US and unlocking growth within the single market.
European Commission President Ursula von der Leyen called for deeper integration to mobilise private capital, while French President Emmanuel Macron reiterated support for joint borrowing and a “Buy European” push.
German Chancellor Friedrich Merz, however, stressed that joint debt should remain reserved for exceptional circumstances, underlining persistent fault lines within the bloc.
In Germany, wholesale prices rose at a steady annual pace in January. According to Destatis, wholesale selling prices increased 1.2% year-on-year, matching December’s rate and easing from 1.5% in November.
On a monthly basis, prices climbed 0.9%, well ahead of FXStreet-cited expectations of a 0.1% rise.
The annual increase was driven primarily by a 44% surge in prices for non-ferrous ores and metals, which were also 8.6% higher than in December.
The pound was quoted at USD1.3626 early Friday, slightly lower than USD1.3628 at the London equities close on Thursday. The euro traded at USD1.1865 early Friday, edging down from USD1.1869 late Thursday. Against the yen, the dollar was quoted at JPY153.54, higher versus JPY152.56.
In London, NatWest was down 0.6% despite reporting stronger-than-expected 2025 results and enhanced shareholder returns. Operating pretax profit rose 24% to GBP7.71 billion from GBP6.20 billion, beating expectations of GBP7.49 billion.
Total income increased 13% to GBP16.64 billion, ahead of forecasts for GBP16.53 billion. Net interest income climbed 14% to GBP12.83 billion, while non-interest income rose 11% to GBP3.81 billion. Fourth-quarter total income came in at GBP4.32 billion, above consensus of GBP4.21 billion, with operating pretax profit of GBP1.94 billion exceeding forecasts of GBP1.72 billion.
The bank proposed a final dividend of 23.0 pence per share, lifting the total payout to 32.5 pence, up 51% year-on-year, and said it intends to launch a GBP750 million share buyback in the first half of 2026. The common equity tier 1 ratio stood at 14.0% at year-end, with a new target of around 13.0%.
For 2026, NatWest expects total income excluding notable items of GBP17.2 billion to GBP17.6 billion and operating expenses of around GBP8.2 billion.
At the top of the blue-chip index, Relx rose 4.4% despite three broker price target cuts following its annual results on Thursday. Deutsche Bank cut its target to 3,050 pence from 3,700 pence, Barclays to 3,075 pence from 3,745 pence, and Bernstein to 3,450 pence from 4,345 pence.
Relx reported higher revenue and profit in 2025, raised its annual dividend by 7% and committed to further buybacks. Chief Executive Erik Engstrom said artificial intelligence is enhancing, rather than threatening, the company’s data analytics and software offerings by enabling greater functionality and cost discipline.
On the FTSE 250, Morgan Sindall benefited from positive broker action, after Deutsche Bank raised its price target to 5,500 pence from 5,000 pence and Berenberg lifted its target to 5,800 pence from 5,400 pence, both maintaining ‘buy’ ratings.
Among smaller caps, SkinBioTherapeutics fell 26% after announcing that Chief Executive Officer Stuart Ashman resigned after being suspended pending an investigation into matters relating to his conduct.
The company declined to comment further while a full investigation is carried out with professional advisers.
Non-Executive Chair Martin Hunt has become executive chair on a temporary basis while the firm searches for an interim and then permanent CEO. Ashman has been CEO since 2019, having joined from Finnish medical device company Onbone Oy.
Back in October, Chief Operating Officer Simon Hewitson departed, with his responsibilities assumed by Ashman and Finance Director Emily Bertram.
In the US on Thursday, Wall Street ended lower, with the Dow Jones Industrial Average down 1.3%, the S&P 500 down 1.6% and the Nasdaq Composite down 2.0%.
The yield on the US 10-year Treasury was quoted at 4.12%, unchanged from Thursday. The yield on the US 30-year Treasury was quoted at 4.75%, narrowing from 4.76%.
US consumer price index data for January is scheduled for release at 1330 GMT. According to FXStreet-cited consensus, headline inflation is expected to rise 2.5% year-on-year, easing from 2.7% in December.
In Asia on Friday, the Nikkei 225 index in Tokyo closed down 1.2%. In China, the Shanghai Composite down 1.3%, while the Hang Seng index in Hong Kong also closed down, 1.7%. The S&P/ASX 200 in Sydney closed down 1.4%
Gold was quoted at USD4,980.00 an ounce early Friday, higher than USD4,932.33 on Thursday. Brent oil traded at USD67.53 a barrel, down from USD68.08 late Thursday.
Still to come on Friday’s economic calendar are eurozone trade balance figures and US CPI data.
By Eva Castanedo, Alliance News reporter
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