IAG Weighs on FTSE After Heathrow Power Outage

The FTSE 100 slipped on Friday after a power outage at Heathrow airport saw British Airways-owner IAG shares drop. S&P 500 futures are high Monday morning after US President Trump signalled flexibility on tariffs. US markets closed higher Friday, with the Dow and S&P slightly up and the Nasdaq gaining 0.5%, while Europe delays countermeasures on the "Dirty 15" tariff list. Meanwhile, global PMIs are due today.

Equities

The FTSE 100 fell 0.6% on Friday, weighed down by ongoing concerns about US trade policy and a power outage at Heathrow Airport that disrupted travel. The FTSE 250 dropped 0.9%, though both indices still posted weekly gains, with the FTSE 100 up 0.3% and the FTSE 250 up 0.5%, snapping a four-week losing streak. British Airways owner IAG fell as much as 4.2% during the day, closing 1.9% lower, after a fire shut down operations at Heathrow, Europe’s busiest airport. The sector dropped nearly 2% overall.

Retail and consumer shares were also under pressure. J D Wetherspoon slumped 9.4% after the pub group reported weak interim profits and issued a cautious economic outlook. JD Sports Fashion declined 5.1% following a gloomy fourth-quarter revenue outlook from Nike in the US, which prompted concerns about demand for athletic wear globally.

Ferrexpo, the iron ore pellet producer, sank 10.8% after Ukraine suspended VAT refunds, adding to uncertainty about its operations. John Wood Group saw the sharpest fall, dropping 13.1% after analysts at Jefferies downgraded the stock to “hold” from “buy”.

In the US, the S&P 500 and the Dow both rose 0.08%, while the Nasdaq gained 0.52%. For the week, the Dow rose 1.2%, the S&P gained 0.5%, and the Nasdaq added 0.17%, ending four-week losing streaks for the latter two. Stocks recovered from early losses on Friday after US President Donald Trump signalled flexibility on tariffs and indicated upcoming talks with China.

Nike fell 5.46%, the weakest performer on the Dow, after warning of a sharper decline in revenue than expected in its fourth quarter. FedEx dropped 6.45% after cutting its full-year profit and revenue forecasts, citing persistent weakness in the US industrial economy. UPS fell 1.61% in response.

Boeing rose 3.06% after securing a contract to build the US Air Force’s most advanced fighter jet, beating Lockheed Martin, which slid 5.79%. Nucor dropped 5.78% after projecting lower-than-expected first-quarter profits, dragging down the broader materials sector by 1%.

Forex & Commodities

The US dollar index held steady at 104.15, just below a three-week high of 104.22 touched on Friday. Against the yen, the dollar rose 0.35% to 149.83, supported by a rise in US Treasury yields, with the 10-year yield climbing 2.5 basis points to 4.279%.

The euro edged up 0.1% to $1.0819 after hitting a near three-week low last week. The currency had previously gained on expectations of increased German government spending, though analysts now expect only gradual fiscal expansion following the passage of a bill easing Germany’s debt brake. Sterling was flat at $1.2914.

Gold prices were largely unchanged, with spot gold trading at $3,025.38 an ounce. This follows Thursday’s record high of $3,057.21. Analysts cited the prospect of new US tariffs and ongoing geopolitical risks, including ceasefire talks between the US and Russia, as key influences. Gold demand from jewellers in Asia and the Middle East has softened, with high prices prompting a wave of second-hand sales.

Oil prices inched higher, with Brent crude up 4 cents to $72.20 a barrel and US West Texas Intermediate gaining 8 cents to $68.36. Both benchmarks posted a second consecutive weekly gain on Friday, supported by US sanctions targeting Iranian exports and a revised OPEC+ production plan. Meanwhile, ongoing talks around a Russia-Ukraine ceasefire and expectations of additional Russian exports are putting pressure on the demand outlook.