Friday Morning Markets: FTSE Slips But Miners Climb as Metals Rally

London stocks are trading lower on Friday as investors continue to digest yesterday’s hawkish Bank of England hold and this morning’s retail sales data.

The FTSE 100 fell 0.3%, the FTSE 250 dipped 0.1%, echoing weakness across Europe, where the DAX shed 0.5%, the CAC 40 lost 0.4% and the Stoxx 50 slipped 0.2%.

Sentiment soured overnight after Iran struck a tanker in the Strait of Hormuz. US President Trump said he was weighing a “big decision” on Iran, keeping traders on edge. However, both Brent (-2.6% to $102.11) and WTI (-2.3% to $99.57) fell.

Elsewhere, spot gold has jumped 1.2% to $4,393/oz and silver surged 2.6% to $66.90, lifting miners Fresnillo (+2.2%), Antofagasta (+1.7%) and Endeavour Mining (+1.65%) to near the top of the FTSE 100.

The BoE voted 6-3 to hold rates at 3.75% on Thursday but flagged a possible November hike if energy prices don’t retreat, with inflation seen peaking above 4% early next year.

ING’s developed market economist James Smith said the Bank of England decision “makes clear what we already knew: that the prospect of a November rate hike will depend entirely on energy prices.”

“A hold is still our base case, assuming energy prices cool over the next six weeks. If they don’t, then we’d expect the Bank to reluctantly hike rates in November and probably in February too,” Smith added.

This morning, there was a surprise 0.5% rise in August retail sales, defying forecasts of a decline, as online and department-store spending rebounded.

In corporate news, Harworth Group rejected Peel Pepper’s sweetened 177.5p offer as undervaluing its datacentre pipeline.

Investec issued a solid pre-close update but shares fell around 2% on cautious guidance. BT Group (-2.8%) and Airtel Africa (-4.6%) led FTSE 100 fallers, alongside Coca-Cola HBC (-3.6%).

In the FTSE 250, Avon Technologies (+5%) and Zigup (+5%) led gains, while Premier Foods, Foresight Group and Metro Bank all slid over 3%.