FTSE 100 rises 1 point to 10,654
Gold gains 1.5% to $4,183.92/oz
Tech stocks send Asian markets higher
Soft US jobs report dampens rate expectations

9.35am: Fresnillo regains mojo 

The FTSE 100 has retraced much of the morning’s gains, now up just 1 point at 10,654.33, but Fresnillo PLC (LSE:FRES) is holding onto its gains after June’s non-farm payrolls report saw the dollar weaken and gold rise. 

“Last year’s stock market darling Fresnillo has regained its mojo and topped the FTSE 100 risers’ list after gold got back on its feet,” commented AJ Bell’s Dan Coatsworth.

Coatsworth explained that yesterday’s US jobs data pointed to a softer labour market, which has raised hopes that the Fed won’t raise interest rates. The shift in rate expectations led to a drop in US Treasury yields, meaning the opportunity on fixed income was slightly diminished, thereby dampening one of the drivers that has taken money away from gold this year.

“Investors might have seen this market shift and decided it was time to add back some more gold,” he added. “The precious metal had a disappointing time in the first half of the year and recently dipped below $4,000 as investors were tempted away by attractive yields on bonds and lapped up stocks as the AI boom carried on. Gold has today rebounded, trading just below $4,200 per ounce and taking the likes of Fresnillo and other gold miners along for the ride.”

9.10am: Samsung on steroids

Further afield, the South Korean market traded in its usual volatile fashion today, with the Kospi jumping almost 6%, supported by a close to 10% jump in Samsung Electronics Co Ltd (ADR) (LSE:BC94) as investors piled back into semiconductor names after the previous session’s heavy sell-off. 

That follows reports that AI start-up Anthropic, developer of next-generation AI assistant Claude, is in talks with the company to produce a specialised AI chip, while memory chipmaker SK Hynix gained 9%, highlighting just how quickly sentiment can turn across the AI sector.

“The speed of today’s rebound shows investors remain eager to buy into the AI story whenever conditions improve,” said Tickmill Group’s Patrick Munnelly. “Reports linking Samsung with Anthropic have provided a fresh catalyst, but the bigger picture is that semiconductor stocks have become the market’s preferred way to express views on AI spending, interest rates and overall risk appetite. That also means volatility is likely to remain elevated as investors react to every new development.”

Back home, the FTSE 100 has retraced most of its gains and is now just 3 points up at 10,656.31.

8.55am: Small and mid caps in the news

Ilika PLC (AIM:IKA, OTCQX:ILIKF, FRA:I8A) has raised £4.56 million through an oversubscribed placing to speed up the commercial rollout of its solid-state battery technology. The funding will help scale its Stereax medical battery business and advance its Goliath EV battery towards licensing, with a retail offer giving existing shareholders the chance to invest on the same terms. Read more

RC365 Holding PLC (LSE:RCGH, FRA:L2G) has signed a five-year partnership to deploy its RC3.0 fintech platform with Blacksilver Trust in Hong Kong. The deal covers virtual accounts, API integration and trust management software, with recurring SaaS fees that grow annually. RC365 says the agreement is another step in expanding its business-to-business fintech offering across Asia. Read more

Quantum Blockchain Technologies PLC (AIM:QBT, FRA:BYA1) has cleared another legal hurdle in its bid to recover more than €6 million linked to the long-running Sipiem case. An Italian court dismissed a challenge to enforcement proceedings, allowing the judicial sale of a third property to go ahead, with an auction scheduled for October 2026. Read more

Caledonia Investments (LSE:CLDN, VFEX:CMCL) has invested £60 million in garden centre operator Blue Diamond, taking a 16% minority stake. The funding will support the company’s growth plans and provide liquidity for existing shareholders. Caledonia has also agreed a framework for up to £40 million of additional investment over the next five years to back acquisitions and expansion. Read more

8.15am: Off to a flying start

The FTSE 100 jumped after a weaker-than-expected jobs report in the US reined in expectations for the Federal Reserve to aggressively hike interest rates. Trade is expected to remain thin today due to the Independence Day holiday in the US.

Shortly after the open, London’s blue-chip index was up 40 points at 10,692.58, adding to yesterday’s strong gains. 

Precious metals producer Fresnillo PLC (LSE:FRES) topped the leaderboard, with a 2.6% gain, as the gold price rose 1.3% to $4,174.23 an ounce and silver jumped 2.4% to $62.47. 

Howden Joinery Group (LSE:HWDN) was close behind, adding 1.9%, while Computacenter PLC (LSE:CCC) gained 1.7%. 

Imperial Brands PLC (LSE:IMB) led the decliners, slipping 0.6%, while retailers Burberry Group PLC (LSE:BRBY) and Next PLC (LSE:NXT) both fell 0.5%. 

7.50am: Asian markets recover 

Asian markets are rebounding after a difficult week, with technology stocks leading the recovery. South Korea’s Kospi jumped 4.6%, helped by an 8.2% surge in Samsung Electronics (KRX:005930) after reports that Anthropic is considering the company to manufacture a custom AI chip.

Chinese markets are also moving higher, with the Hang Seng up 1.6%, extending its weekly gain to around 4%, while the CSI 300 and Shanghai Composite posted more modest advances. Australia’s ASX 200 rose 1.4%, supported by stronger-than-expected services sector data.

Economic data also added to the positive mood in China, with the services PMI coming in at 54.1 for June, ahead of forecasts of 53.

Deutsche Bank’s Jim Reid said the recent bout of “tech altitude sickness” appears to be easing, with the Samsung-Anthropic reports providing a fresh catalyst for the sector. 

FTSE 100 Live pre-open

London looks set to end the week on a positive note, with the FTSE 100 called 33 points higher on the futures market, building on yesterday’s strong 174-point gain that pushed the index to 10,652.

The catalyst is a softer-than-expected US jobs report, which has taken some heat out of Federal Reserve rate-hike expectations. The US economy added just 57,000 nonfarm jobs in June, roughly half the 113,000 economists had forecast, while April and May’s figures were also revised lower. The unemployment rate dipped to 4.2%, though that reflected a fall in labour force participation rather than genuine jobs growth. Wage growth came in line with expectations.

Swissquote’s Ipek Ozkardeskaya said the data “looked soft enough to encourage the market to trim Federal Reserve rate hike expectations for this year,” adding that markets still price in one hike this year, with just over a 50% chance of it coming as early as September.

US stocks ended mixed ahead of the long Independence Day weekend, with Wall Street closed today. The Dow Jones added 1% to finish at a fresh record high, while technology stocks weighed on the Nasdaq, which fell 0.8% as a semiconductor selloff offset gains elsewhere. The S&P 500 slipped 0.1%.

Asian markets are broadly positive this morning. Tokyo’s Nikkei is up 1.3%, Hong Kong’s Hang Seng has added 1.4%, and Shanghai’s SSE Composite is up 0.8%. Seoul’s Kospi has surged 5.4% on strong institutional buying, while Sydney’s ASX 200 closed 1.4% higher.