FTSE Closes +0.25% at 8,384; Gilt Yields Tick to 4.94%
The FTSE 100 closed 0.25% higher at 8,384 on Friday, absorbing the historic election results with less disruption than feared. Sterling eased marginally to $1.3020; ten-year gilt yields ticked to 4.94% from Thursday’s 4.93%. Brent edged to $101.70 (+0.5%) on the Hormuz exchange; the VIX rose to 28.4, reflecting residual Iran uncertainty.
A flat-to-positive Friday close after the largest Reform breakthrough in British political history reflects a market judgement that UK institutional architecture is resilient and the election result was already priced in. The single-basis-point gilt move confirms institutions are watching leadership-challenge mechanics rather than acting on them. The genuine risk to UK assets this weekend is the Iran situation: a memo signing on Sunday would push gilts lower and sterling higher, while a breakdown would reverse Thursday’s rally. Labour’s fiscal arithmetic is unchanged regardless of who leads the party.