London stocks opened lower on Friday as investors remained cautious amid continuing uncertainty surrounding US-Iran negotiations and growing concerns over elevated technology sector valuations.
The FTSE 100 slipped 0.2% in early trading to 10,341.08, while the domestically focused FTSE 250 also fell 0.2% to 23,258.29.
Market sentiment remained subdued as hopes for a breakthrough in Middle East peace talks faded, with negotiations between Washington and Tehran showing little tangible progress. Investors continue to monitor developments closely, given the potential impact on global energy markets and inflation expectations.
Oil prices remained elevated amid the uncertainty, providing support for energy stocks but weighing on broader market confidence. Traders remain focused on the future of the Strait of Hormuz, a critical global shipping route that remains central to ongoing diplomatic discussions.
Technology stocks also faced pressure as investors reassessed valuations following a powerful rally driven by artificial intelligence enthusiasm. Concerns have emerged that some segments of the sector may be pricing in overly optimistic growth assumptions, prompting profit-taking across global markets.
The cautious start in London mirrored a mixed performance across international markets, with investors also awaiting key US economic data later in the day, including non-farm payroll figures, which could provide further clues on the outlook for interest rates and economic growth.
Despite the weaker open, the FTSE 100 remains near recent highs, with market participants continuing to balance geopolitical risks against resilient corporate earnings and expectations that central banks may move towards a more accommodative policy stance later in the year.
