The FTSE 100 finished Friday modestly lower after briefly reaching yet another all-time intraday record, as investors locked in profits following a strong week and rising global bond yields weighed on sentiment.
The blue-chip index fell 29.22 points (0.3%) to close at 10,868.05, after earlier touching a fresh record high of 10,989.45. Despite the late retreat, the FTSE 100 still gained 1.2% over the week, while the FTSE 250 advanced 0.7%.
NatWest led the blue-chip gainers, rising 3.2% after upgrading its 2026 guidance, beating second-quarter profit expectations and signalling it could announce a new share buyback at its full-year results, six months earlier than planned.
Sainsbury’s also gained after agreeing to sell Argos for £120 million, allowing the supermarket group to sharpen its focus on its core grocery business.
At the other end of the market, IG Group slumped 14% after unveiling its US$1.3 billion acquisition of US fantasy sports and prediction markets operator Underdog, despite reporting an 18% increase in first-half revenue. Melrose Industries, JD Sports, Experian and Informa also ended among the session’s weakest performers.
Investor sentiment was also influenced by rising bond yields after two US Federal Reserve policymakers reiterated that further interest rate increases may be needed to prevent inflation from becoming entrenched. The yield on the US 10-year Treasury climbed to 4.74%, while the UK 10-year gilt yield rose above 5%, prompting some investors to reduce equity exposure.
On Wall Street, trading was mixed. Amazon surged around 13% after delivering stronger-than-expected earnings and robust growth at Amazon Web Services, while Apple tumbled more than 9% after warning that supply constraints and foreign exchange headwinds would slow revenue growth in the current quarter.
Looking ahead, investors will turn their attention next week to a busy corporate reporting calendar featuring HSBC, BP and Diageo, alongside a series of global manufacturing PMI releases that will provide fresh insight into the health of the world economy.
