UK Stocks Tread Water Amid Elevated Oil Prices and Geopolitical Risks

The UK stock market is expected to open broadly flat to slightly higher on Friday, August 21, according to IG futures.

The FTSE 100 index closed almost unchanged at 10,748.16 on Thursday, with gains in mining and oil stocks offsetting weakness in other sectors such as JD Sports, which declined sharply by over 14% following a disappointing guidance update.

Investors are weighing higher bond yields, elevated oil prices, UK inflation, and geopolitical risks, including the ongoing US-Iran conflict and its impact on global energy supplies through the Strait of Hormuz.

The FTSE 100 outlook for Friday is cautious, with futures suggesting an opening near 10,751.26, a gain of around 3.1 points from Thursday's close.