Friday Morning Markets: FTSE 100 Hits Fresh Record as BP Weighs North Sea Exit

The FTSE 100 pushed to a fresh intraday record on Friday morning, up 0.7%, as investors shrugged off Middle East tensions.

The FTSE 250 has added 0.5%, while European peers rallied harder, with the DAX rising 1.2%, the CAC 40 gaining 1%, and the Euro Stoxx 50 climbing 1.1% amid a broader global risk rebound.

Sentiment comes a day after the Bank of England held interest rates at 3.75% in a split 6-3 vote, with three MPC members backing a hike.

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Governor Andrew Bailey played down prospects of near-term tightening but flagged inflation risks tied to the escalating US-Iran conflict, which has entered a volatile new phase.

Brent crude, which spiked near $90 a barrel this week on the fighting, is down 1% today. Spot gold has also retreated, trading at $4,057 versus Thursday’s close of $4,103.

In a corporate development, BP has reportedly launched a formal process to market its North Sea business for a potential sale, as new CEO Meg O’Neill accelerates a portfolio overhaul that could end the group’s six-decade history in the UK basin.

The assets include five production hubs in the central North Sea and west of Shetland. The UK’s energy minister said she is in close contact with BP over the plans.

Elsewhere, NatWest (+3.86%) has jumped after strong interim results, while Sainsbury’s (+3.57%) has risen after agreeing to sell Argos to Swift Partners for at least £120m. BAE Systems (+3.80%) and Polar Capital Technology Trust (+4.33%) also lead the gainers.

On the downside, IG Group has tumbled 7.50%, while Pearson (-3.52%) and Melrose Industries (-3.39%) have fallen after disappointing results. Halfords entered the FTSE 250, and HSBC, IAG, Intertek and AstraZeneca all issued updates.

In the FTSE 250, Ceres Power (+7.89%), AEP Plantations (+7.60%) and Pacific Horizon (+6.59%) lead the gainers, while Dr Martens (-5.66%), Taylor Wimpey, after its half-year results (-4.31%), and Greggs (-3.40%) lagged.

Meanwhile, in the US, Amazon shares have surged premarket after its latest quarterly report, while Apple has tumbled.

Apple posted current-quarter guidance that disappointed investors, while Amazon reported a surge in revenue from its key cloud business despite projecting spending to rise this year.