London - British equity markets moved higher on Friday, following a global rebound in technology shares that began after a set of influential corporate results in the United States. As equity markets elsewhere rallied, the FTSE 100 climbed, reflecting a broader shift back toward risk assets even as geopolitical concerns and commodity price fluctuations injected caution.
The FTSE 100 gained 0.74% as of 03:28 ET (07:28 GMT). Across continental Europe, Germany's DAX added 1.2% and France's CAC 40 rose 0.95%. Sterling traded slightly weaker, down 0.11% against the dollar at $1.3452.
US technology companies were a central catalyst for the move. Shares of a major online retailer jumped 10% in after-hours trade after the company reported robust second-quarter results. In contrast, one large consumer technology firm saw its shares fall more than 6% in extended trading after issuing a warning about deteriorating supply constraints and guiding third-quarter revenue growth to 9% to 11%, below market expectations.
The positive momentum spilled into Asian markets. Japan's Nikkei 225 rose 3.9% and South Korea's Kospi surged 17.9% to close higher, driven in part by sharp rebounds among semiconductor manufacturers, with Samsung Electronics and SK Hynix recovering after heavy losses earlier in the week.
That risk-on tone was not unchecked. New geopolitical reports introduced fresh uncertainty. Iran's Press TV, citing state media, said Iranian forces struck the Ahmad al-Jaber air base in Kuwait "several hours" before dawn Friday; Kuwaiti authorities had not confirmed that report as European markets opened. Separately, U.S. officials said Hamas had agreed to a roadmap to surrender its weapons and relinquish any governing role in Gaza, and the U.S. President confirmed a phased Israeli withdrawal on social media. In the wider regional conflict, Israeli authorities reported they destroyed tunnels in southern Lebanon using roughly 700 tons of explosives, alleging a breach of a ceasefire by Hezbollah.
Market data on the FTSE displayed intraday strength - the index was shown at 10,978.75, up 81.48 points or 0.75% in real-time data snapshots. The push higher in equities came alongside mixed moves in commodities and safe-haven assets.
UK housing data suggested softer underlying momentum in the property market. Nationwide reported that annual house price growth slowed in July, even though prices recorded their first monthly increase in three months, a sign that uncertainty continues to weigh on buyer activity.
Oil prices extended losses from the prior session. Brent crude fell 0.82% to $86.16 a barrel while WTI dropped 1.33% to $82.54, continuing Thursday's 1.9% slide that took Brent below $90. Analysts at a major commodities house said early signs of recovering Persian Gulf supply - estimated at 65% of pre-war flows - were offsetting still-elevated U.S.-Iran tensions.
Precious metals also eased as markets embraced risk. Gold futures slipped 0.65% to $4,073.30 an ounce, with spot gold down 0.70% at $4,075.
UK corporate and sector developments
Several company-specific headlines underpinned market moves on the domestic front:
- Taylor Wimpey reduced its forecast for UK home completions in 2026 after slower buyer conversions and affordability pressures weighed on demand, signaling continued caution among homebuilders and prospective buyers.
- Sainsbury's agreed to sell Argos to Swift Partners for at least 120 million pounds, reflecting the retailer's strategy to refocus on its core grocery operations and simplify its portfolio.
- BP launched a formal sale process for its North Sea business as CEO Meg O'Neill accelerated plans to streamline the portfolio and reduce debt. The divestment is part of the company's objective to deliver $20 billion of asset sales by 2027.
- NatWest reported first-half profit above forecasts and lifted its full-year profitability outlook on stronger income and disciplined cost management. The bank said it could start share buybacks after reporting full-year results for 2026.
- Shell agreed to sell its BG Cyprus unit to MOL Group for up to $720 million, continuing its reshaping of the portfolio around LNG and adjusting capital allocation priorities.
These corporate items touched sectors from homebuilding and retail to oil and banking, reinforcing the mixed backdrop for UK markets even as the broader equity picture was buoyed by tech gains abroad.
Overall, the session reflected a market environment in which a global rebound in technology stocks lifted risk assets, while geopolitical developments and commodity price movements continued to provide potential headwinds for investors monitoring regional conflict and energy markets.