Market Overview

British equities slipped, with the FTSE 100 down 0.2% on Friday, ending its record‑high run and missing a fourth consecutive month of gains, the best stretch since February.

Drivers of the Session

A global risk‑on rally earlier in the day was sparked by Amazon’s blockbuster second‑quarter earnings, lifting Amazon shares more than 14%, while Apple fell over 9% after warning of worsening supply constraints and projecting third‑quarter revenue growth of 9‑11%, below market expectations. The technology bounce extended to Asia, where Japan’s Nikkei 225 rose 3.9% and South Korea’s Kospi jumped 17.9% as chipmakers Samsung Electronics and SK Hynix recovered sharply after earlier‑week losses.

Geopolitical and Macro Context

Iranian forces reportedly struck the Ahmad al‑Jaber air base in Kuwait shortly before dawn; Kuwaiti authorities had not confirmed the report. Hamas announced a roadmap to surrender its weapons and relinquish any governing role in Gaza, and U.S. President Donald Trump confirmed a phased Israeli withdrawal on Truth Social. Israel said it destroyed tunnels in southern Lebanon using roughly 700 tons of explosives, accusing Hezbollah of breaching a ceasefire.

Commodity Prices

Brent crude rose 0.6% to $87.37 a barrel and WTI increased 0.8% to $84.22, after a 1.9% slide the previous day that pushed Brent below $90. Early indications of Persian Gulf supply recovery, estimated at 65% of pre‑war flows, helped offset heightened U.S.–Iran tensions. Gold futures slipped 1.5% to $4,038.30 per ounce, with spot gold down the same percentage at $4,044.

UK Housing Market

Nationwide reported that annual house‑price growth slowed in July, though prices posted their first monthly rise in three months, signalling a softer housing market amid continued economic uncertainty.

Corporate Updates

  • Taylor Wimpey reduced its 2026 UK home‑completion forecast, citing slower buyer conversions, affordability pressures, and heightened geopolitical uncertainty that is lengthening purchase decisions.
  • IAG, the parent of British Airways, fell 5% after a sharp decline in second‑quarter operating profit.
  • Sainsbury’s agreed to sell Argos to Swift Partners for a minimum of £120 million, sharpening its focus on core grocery operations.
  • BP launched a formal sale process for its North Sea business, with CEO Meg O’Neill accelerating portfolio streamlining and targeting $20 billion of asset sales by 2027 to reduce debt.
  • NatWest posted first‑half profit above forecasts, raised its full‑year profitability outlook, and indicated that share buybacks could commence after the 2026 full‑year results.
  • Shell agreed to sell its BG Cyprus unit to MOL Group for up to $720 million, transferring its stake in the Aphrodite gas field and supporting its capital‑allocation strategy.

Attribution

Reporting was contributed by Pranav K.