Friday Morning Markets: FTSE Treads Water, Admiral Shares Tumble

UK equity markets opened on a cautious footing Friday, with the FTSE 100 clinging to marginal gains of 0.1% as investors digest Thursday’s Bank of England rate decision, a strong retail sales print, and continued political noise around Downing Street. 

The FTSE 250 has slipped 0.2%, while European bourses fare better, with the DAX adding 0.5%, the CAC 40 up 0.3%, and the Euro Stoxx 50 having gained 0.2%.

BoE Holds 

The Bank of England voted 7-2 to keep rates at 3.75% on Thursday, amid easing geopolitical pressures following the US-Iran truce and May inflation data. 

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UK Retail Sales Beat Forecasts

Fresh ONS data offered some cheer on Friday, with UK retail sales having risen 1.2% month-on-month in May, with an annual gain of 3.2%. 

Warm weather and retailer promotions drove footfall and spending, suggesting consumer resilience.

Labour Uncertainty Lingers

Political risk remains a backdrop for UK markets…

Andy Burnham has won the Makerfield by-election, potentially setting up a showdown with current Prime Minister Sir Keir Starmer over the Labor leadership.  Burnham is widely expected to make a bid for the leadership position and the job of prime minister, with Starmer facing sustained pressure. 

PPHE Dives

The biggest story is PPHE Hotel Group (LON: PPH), which has crashed by around 19% after the collapse of Fattal Hotels’ £921 million takeover approach, pitched at £22 per share. 

A major shareholder blocked the deal, with the independent committee concluding the offer was inadequate. A painful outcome for investors banking on a premium exit.

Risers & Fallers

On the upside, AstraZeneca (+1.57%) benefits from a defensive rotation into pharma amid the cautious tone. 

Babcock (+1.55%) has gained, while BP (+1.48%) has moved higher despite the US-Iran deal and the reopening of the Strait of Hormuz easing supply anxiety. 

Among fallers, Admiral (-5.77%) leads declines after RBC issued a downgrade this morning. 

Lloyds (-1.56%) has softened, while United Utilities (-1.46%) has also retreated.