Image Source: Pexels

London's benchmark index traded cautiously on Friday after achieving a record closing high in the previous session. Declining metal prices weighed on mining stocks, counterbalancing gains in defence shares. The blue-chip FTSE 100 remained flat to slightly lower during the session but was on track to secure another weekly gain, supported by earlier strength in resource-focused stocks. These market moves were largely shaped by geopolitical developments and regional economic updates. Looking ahead, the UK faces a busy economic calendar next week, including a labour market report on Tuesday, inflation data on Wednesday, public finance figures on Thursday, and retail sales on Friday.

Mining stocks faced notable losses, with major players like Anglo American, Rio Tinto, and Antofagasta seeing their shares decline between 1.8% and 2.3%. Concerns over weakening copper demand from China, the world's largest consumer of the metal, drove the downturn. The precious metals mining sector also suffered, with its index falling 1.1%. Gold prices continued to slide as robust U.S. economic data diminished hopes for imminent Federal Reserve interest rate cuts. Additionally, easing geopolitical tensions in Iran reduced gold's appeal as a safe-haven asset. Conversely, defence stocks experienced a sharp rise amid escalating tensions linked to the Russia-Ukraine conflict. Ukrainian President Volodymyr Zelenskiy declared a state of emergency, while the UK pledged £20 million in energy aid to Ukraine. As a result, Britain's aerospace and defence index climbed 1.25%, with BAE Systems gaining 1.6%, Avon Technologies rising 1.5%, and Rolls-Royce Holdings up 1.1%. Media company Pearson emerged as the worst performer on the FTSE 100, with its shares dropping 3% after Barclays lowered its price target from 1175 pence to 1070 pence, dragging down media stocks across the board. Separately, Bloomberg News reported that the UK's Office for National Statistics is considering delaying the rollout of its revamped labour market survey by up to six months. While originally scheduled for November, the launch may be postponed to May 2027. 

TECHNICAL & TRADE VIEW - FTSE100

• Daily VWAP Bullish 
• Weekly VWAP Bullish
• Above 10150 Target 10300
• Below 10070 Target 9950

(Click on image to enlarge)

More By This Author: