The FTSE 100 opened 80 points lower at 10,293.35 as gilt yields rose after Greater Manchester Mayor Andy Burnham said he would plan to stand in the Makerfield by-election, which would mean he could challenge Prime Minister Keir Starmer for the leadership.
Meanwhile, oil prices rose with Brent Crude rising 1.72% to $107.5, while West Texas Intermediate (WTI) gained 2.12% to $103.3.
Gainers & Losers
3I Group surged 3.55% to £2,187, while BP advanced 1.13% to £546.80 and GSK gained 1.12% to £1,893.50.
Among other gainers, Babcock International rose 0.82% to £983.40, while AstraZeneca added 0.68% to £13,834 and Standard Life edged higher by 0.65% to £770.50.
On the downside, Antofagasta plunged 5.88% to £4,016, while Fresnillo declined 5.67% to £3,497 and Anglo American slipped 4.55% to £3,878.
Miners declined as metal prices came under pressure after gold fell 1.4% to $4,586.42 an ounce amid inflation concerns.
Among other laggards, Spirax Group fell 2.66% to £6,955, while Rio Tinto eased 2.48% to £7,952 and Next edged lower by 1.15% to £12,485.
UK Bond Markets on Alert
Andy Burnham's potential path to Parliament has added a political risk premium to UK bonds in a major blow to the government's cost to borrow. The yield on 10-year gilts rose 10 basis points at open, whilst on the 30-year, the yield was up 12 basis points.
Comparatively, across Europe, all bond yields have continued to rise amid the war in West Asia, but have done so at a reduced rate in the UK. Belgium and France's respective 10-year yields were up five basis points.
Deutsche Bank's Jim Reid says, "The last 24 hours have brought many headlines, but the biggest is that Greater Manchester's Mayor Andy Burnham is seeking to return to Parliament. He now has a path to do so, because an MP in the region announced he'd be standing down to trigger a by-election, which Burnham has said he'll try to stand in. So if he's successful and becomes an MP, that would mean he could challenge for the party leadership to become Prime Minister."
Tate & Lyle Shares Surged
Shares of Tate & Lyle jumped on Friday, after a takeover bid caused the stock to rise around 50% on Thursday.
The firm saw its shares jump by 45% on Thursday to £543, after its board said it is discussing the proposal from US company Ingredion. The jump on Friday was modest, with shares climbing 1.8% to £554.
The bid stands at £615 per share, valuing Tate & Lyle at £2.7 billion.
Global Market View
In the US, stocks rose higher, with the Dow, S&P 500, and Nasdaq all gaining around 0.8-0.9%, the latter hitting a fresh record amid AI momentum. Futures suggest further gains today.
In Asia, Tokyo's Nikkei has fallen 2.5% on inflation fears, while Hong Kong's Hang Seng declined 2% and Shanghai Composite slipped 1.4%. Seoul's Kospi plunged over 6% as foreign investors dump technology stocks. Sydney's ASX 200 ended marginally lower. In India, Nifty 50 gained 0.35% and Sensex climbed 0.36%.