Market open and movers
British stocks opened the session higher on Friday following a week of volatility tied to developments in the Middle East. As of 08:14 GMT the FTSE 100 was trading 0.2% higher. The pound strengthened 0.1% against the dollar, with GBP/USD quoted at 1.3369. Sentiment across mainland Europe was also positive: Germany's DAX rose 0.9% and France's CAC 40 climbed 0.4%.
Geopolitical developments - Middle East
Geopolitical headlines continued to dominate market attention. U.S. President Donald Trump stated he would oppose Mojtaba Khamenei becoming Iran’s next leader, while Tehran indicated it has no interest in entering negotiations. Separately, reports said China is holding talks with Iran aimed at ensuring secure passage for vessels through the Strait of Hormuz.
U.S. officials are reported to be considering a range of measures intended to help dampen oil prices, including the possibility of a temporary relaxation of restrictions on Russian crude. Market commentary from Jefferies warned of near-term upward pressure on oil prices, saying: "Near term, we still see an upward pressure on oil prices, and we could see oil above $90. But we are not in the camp that oil could go above $100 and stay there for an elongated period of time."
UK corporate and economic round-up
In company news, IMI PLC (LON:IMI) unveiled a £500 million share buyback and reported continued top-line expansion. The British fluid and motion control group posted its fifth consecutive year of mid-single digit organic revenue growth, with adjusted earnings per share up 8% to 132.3p for full-year 2025.
IMI said organic revenue increased 5% to £2.30 billion. On an organic basis, adjusted operating profit rose 8% to £460 million and the adjusted operating margin widened by 30 basis points to 20.0%. Statutory operating profit increased 19% to £422 million. For 2026 the company guided adjusted basic EPS of 136p to 140p and said this would represent a sixth consecutive year of mid-single digit organic revenue growth.
Separately, Marwyn Acquisition Company III Ltd (LON:MAC3) said discussions with Palmer Street Limited over a potential combination have been terminated by mutual agreement. Those talks, which were first announced on October 9, 2025, were called off as both parties agreed a public listing would be premature at this stage.
On the housing front, UK property values reached a new record in February, according to Halifax data released on Friday. The average UK house price rose to £301,151, a 0.3% increase in February following a 0.8% rise in January. Annual growth accelerated to 1.3% from 1.1% in January, the strongest four-month pace. Halifax also noted that average prices have risen by around £3,000 since the start of the year.
Implications and market context
Geopolitical uncertainty tied to the Middle East was the clear market catalyst at the open, with investors watching developments that could influence oil flows and crude pricing. Corporate updates from listed companies and fresh housing data added domestic signals for UK markets, touching industrials and real estate sectors as well as broader investor sentiment across the FTSE 100 and European indices.
Key details
- FTSE 100 up 0.2% at 08:14 GMT; GBP/USD 1.3369, up 0.1%.
- DAX +0.9%, CAC 40 +0.4%.
- IMI announces £500 million buyback; FY2025 adjusted EPS 132.3p, organic revenue £2.30 billion.
- Marwyn Acquisition Company III terminates talks with Palmer Street Limited; original talks announced October 9, 2025.
- UK average house price £301,151 in February; monthly +0.3%, annual +1.3%.