Mixed markets in London as Donald Trump and Xi Jinping talk

Stock prices in London closed mixed on Friday, following a week of interest rate decisions that mostly went as expected, and after a much-anticipated phone conversation between US President Donald Trump and China’s President Xi Jinping.

“Markets continued to digest the (US) Federal Reserve’s 25-basis-point rate cut this week,” Naga’s Frank Walbaum commented.

“Chair Jerome Powell described the move as a measured response to a cooling labour market, while stressing that the central bank would proceed cautiously with any further easing.

“However, a fall in jobless claims to 231,000 in last week’s data eased fears of a rapid labour market deterioration.

“Meanwhile, global policy developments added to the backdrop, with both the Bank of England and Bank of Japan holding interest rates steady this week.”

The FTSE 100 index closed down 11.44 points, 0.1%, at 9,216.67.

The FTSE 250 ended down 136.02 points, 0.6%, at 21,589.93, and the AIM All-Share closed up 1.26 points, 0.2%, at 773.60.

On the FTSE 100, NatWest was down 1.7%.

The Edinburgh-based bank is working with advisers on a sale of Cushon two years after paying £144 million for a controlling 85% stake in the workplace pensions provider, Sky News reported.

The disposal would reflect the priorities of chief executive Paul Thwaite, which includes a simplification programme and more active balance sheet and risk management.

However, a NatWest spokesperson declined to comment on the “speculation”.

Kainos on the FTSE 250 was down 1.4%.

The London-based Workday partner and provider of IT services to public sector, commercial, and healthcare customers announced the acquisition of Davis Pier, growing its Digital Services division workforce in Canada.

Davis Pier is a Nova Scotia-based consultancy specialising in addressing complex challenges for Canadian public sector and community organisations.

On AIM, Gelion ended up 11%.

The London-based battery energy storage systems firm’s UK subsidiary Oxlid has secured £533,000 in government grant funding to advance its lithium-sulphur battery technology, in collaboration with FTSE 250-listed defence and aerospace firm Qinetiq.

Chief executive John Wood said the funding will allow Gelion to demonstrate “ultra-high energy density” cells while meeting performance needs for strategic applications, and that Qinetiq’s expertise in defence certification and cell manufacturing would support the pathway to commercialisation.

Small-cap Predator Oil & Gas dropped 13%.

The Morocco and Trinidad-focused oil and gas company’s pretax loss widened to £1.9 million in the first half of 2025, from £1.0 million a year prior, although revenue was £66,815 compared to none the year before.

Chief executive Paul Griffiths, meanwhile, said: “The outlook for the next 12 months is positive and filled with operational activity…Substantive progress has been achieved by our team against the background of volatility in the financial and public markets caused by global events. We see this as an opportunity and not an excuse.”

In European equities on Friday, the CAC 40 in Paris closed up 0.1%, while the Dax 40 in Frankfurt ended down 0.1%.

The pound was quoted lower at 1.3475 US dollars at the time of the London equities close on Friday, compared to 1.3556 on Thursday.

The euro stood at 1.1746 US dollars, lower against 1.1786.

Against the yen, the dollar was trading at 147.89 yen, slightly lower compared to 147.94.

Stocks in New York were higher.

The Dow Jones Industrial Average was up 13.47 points, the S&P 500 index up 0.1%, and the Nasdaq Composite up 0.2%.

The yield on the US 10-year Treasury was quoted at 4.14%, widening from 4.11%.

The yield on the US 30-year Treasury was quoted at 4.75%, widening from 4.73%.

Mr Trump and China’s leader Mr Xi spoke by phone on Friday.

Chinese state broadcaster CCTV and the Xinhua news agency said the call had started.

The pair could settle disputes over TikTok, after Mr Trump repeatedly put off a ban under a US law designed to force Beijing-based parent ByteDance to sell its US operations for national security reasons.

Mr Trump told reporters on Thursday that he hoped to “finalise something on TikTok”, whose US business would be “owned by all American investors, and very rich people and companies”, as he put it.

The world’s two biggest economies also seek to find a compromise on tariffs.

Both sides dramatically hiked levies against each other during a months-long dispute earlier this year, disrupting global supply chains.

Brent oil was quoted lower at 66.56 US dollars a barrel at the time of the London equities close on Friday, from 67.09 late on Thursday.

Gold was quoted at 3,670.59 US dollars an ounce, up against 3,654.51 US dollars.

“Gold prices were relatively steady and remained above the 3,640 US dollars level on Friday, leaving the metal on track for a flat or marginally positive weekly close after four weeks of strong gains,” Mr Walbaum commented.

“Profit-taking after hitting record highs on Wednesday and a rise in US Treasury yields weighed on sentiment, but safe-haven demand helped limit losses.”

He added that “global policy developments added to the backdrop, with both the Bank of England and Bank of Japan holding interest rates steady this week.

“However, geopolitical tensions in the Middle East and Eastern Europe continued to be a key support for bullion.”

The biggest risers on the FTSE 100 were Fresnillo, up 112.0p at 2,276.0p, Endeavour Mining, up 136.0p at 2,828.0p, Next, up 295.0p at 11,870.0p, Coca-Cola HBC, up 74.0p at 3,644.0p, and Glencore, up 5.60p at 312.9p.

The biggest fallers on the FTSE 100 were London Stock Exchange Group, down 498.0p at 8,138.0p, WPP, down 19.70p at 360.7p, JD Sports Fashion, down 3.2p at 88.7p, Airtel Africa, down 5.2p at 221.2p, and Lloyds, down 1.67p at 82.1p.

On Monday’s economic calendar, China has its interest rate decision.

On Monday’s UK corporate calendar, Wilmington reports full-year and BioPharma Credit reports half-year results.

Contributed by Alliance News.