Market Overview
The FTSE 100 slipped 0.3% on Friday, with the broader European indices mixed: Germany’s DAX rose 0.5%, France’s CAC 40 fell 0.2%, and the French CAC 40? Actually earlier said CAC 40 dropped 0.2% (that's France). Sterling advanced, GBP/USD up 0.5% at 1.3555.
Mining Sector Impact
Mining stocks were the FTSE’s sharpest drag. Antofagasta deepened its decline to 4.6%, leading the sector, followed by losses in Glencore, Anglo American, Fresnillo, Rio Tinto and Endeavour Mining.
Commodity Prices
London base‑metal prices were mixed by mid‑day: copper down 0.15%, aluminium edged lower 0.02%, and nickel slipped 0.29%. Gold futures fell 0.35% to $4,405.47 an ounce and spot gold fell 0.05% to $4,349.09. Brent crude rose 0.20% to $87.24 a barrel and U.S. WTI gained 0.66% to $81.79 a barrel.
Geopolitical Developments
The Gulf Cooperation Council secretary‑general Jasem Mohamed Albudaiwi issued the strongest condemnation of Iranian actions in the Strait of Hormuz, describing attacks on two ADNOC tankers as an “unacceptable escalation”. The UK Maritime Trade Operations agency reported a separate tanker struck by an uncrewed aerial vehicle while transiting the strait; the crew was safe and damage was minor. Analysts at Jefferies, quoted by Mohit Kumar, head of global economics, warned that the Hormuz standoff has no clear resolution, noting Iran’s higher tolerance for economic pain and that the market could absorb disruption for weeks but not months.
Corporate Updates
Venezuelan officials signed an agreement with BP, Abu Dhabi National Oil Company‑owned investment firm XRG and Qatar’s UCC Holding oil and gas unit to develop the offshore Loran gas field, as announced by oil minister Paula Henao. British insurer Aviva beat first‑half profit expectations, boosted by its combination with Direct Line and strong growth in its wealth‑management business.
Economic Context
U.S. producer prices were unchanged in July, missing forecasts for a 0.2% rise, with the annual PPI cooling to 4.7% from 5.5%. The softer print pushed Fed funds futures to imply roughly a 35% chance of a rate hike, down from about 55% a week earlier.