London midday: FTSE turns higher as software stocks gain
By Michele Maatouk
Date: Friday 05 Jun 2026
(Sharecast News) - London equity markets had turned higher by midday on Friday, with software names pacing the advance amid concerns about AI stock valuations following a disappointing outlook from Broadcom this week, as investors eyed the latest US non-farm payrolls report.
The FTSE 100 was up 0.4% at 10,398.47, reversing earlier losses, while Brent crude was flat at $94.98 a barrel.
Russ Mould, investment director at AJ Bell, said: "The FTSE 100 held its ground on Friday as its lack of tech and AI exposure proved to be a benefit.
"Broadcom's failure to keep pace with soaring AI-related expectations with this week's earnings and outlook prompted a wave of selling among related companies and led to weakness across Asia and Wall Street. The correction was compounded by a continuing lack of progress towards a US-Iran peace deal - though oil prices remain below $95 per barrel on hopes a breakthrough can be found.
"There will be scrutiny of the US jobs release later. After April's strong data, investors will be watching to see if the headline figure falls within the 85,000 to 96,000 range analysts expect and whether unemployment stays at 4.3%.
"Another upside surprise like April's would strengthen the case for rates staying higher for longer, especially if wage growth remains robust. By contrast, a weaker-than-expected reading could raise recession concerns and alter expectations for interest rates."
The non-farm payrolls report, average earnings and the unemployment rate for May are all due at 1330 BST.
On home shores, the latest data from Halifax showed that house prices unexpectedly declined in May.
House prices fell 0.1% on the month, matching April's fall but missing expectations for an increase of 0.1%. On the year, house prices were up 0.5% in May following a 0.4% rise the month before, but missing expectations for a 1% jump.
Amanda Bryden, head of mortgages at Halifax, said: "Property price trends continue to reflect the uncertainty linked to developments in the Middle East. Despite recent cuts to mortgage rates, higher inflation expectations have kept borrowing costs above the level seen at the start of the year, continuing to stretch affordability for many buyers and temper demand.
"Even so, overall activity has held up well, reflecting the underlying resilience of the UK housing market. Latest industry figures show transaction levels remain relatively stable, suggesting buyers and sellers are still moving.
"Among first‑time buyers, annual growth is more subdued at +0.3%. While getting onto the property ladder remains a big challenge, there has been increasing support from lenders, including more flexible affordability checks and a growing range of low‑deposit options.
"Looking ahead, borrowing costs and consumer confidence are likely to continue shaping activity in the coming months, with house prices expected to be broadly stable while interest rates stay elevated. The housing market remains closely tied to wider global developments, with a return to sustained house price growth dependent on an improvement in the inflation outlook and a fall in mortgage costs."
On the corporate front, M&A news was providing some action on an otherwise quiet day.
Evoke shot higher after the William Hill owner accepted a £243m takeover offer from Greek gambling company Bally's Intralot.
Russ Mould said: "Predator turns to prey as William Hill's owner Evoke is set to be gobbled up by Bally's Intralot. The deal looks chunky with a massive premium to market price just before Evoke effectively put itself up for sale. However, Evoke had already rallied in April when Bally's Intralot confirmed bid interest at 50p per share. The firm offer is pitched slightly higher at 52p per share.
"It will bring an end to William Hill's 24-year stint on the UK stock market as a standalone business and under Evoke's corporate umbrella.
"The UK's last man standing as a listed entity among the big high street betting names is now Ladbrokes which is owned by Entain. Paddy Power's owner Flutter has already switched allegiance to the US and looks set to ditch its London listing completely.
"Gambling is still a viable industry in the UK, except it is increasingly done online. High street betting shops are a dying breed thanks to immense tax and cost pressures."
Meanwhile, Bodycote tumbled as it said Apollo Management had pulled out of its proposed £1.5bn offer for the UK thermal processing company.
DiscoverIE slumped after RBC Capital Markets downgraded the shares to 'sector perform' from 'outperform' as it said the valuation is now back in line with history.
Raspberry Pi rocketed as it lifted its full-year profit outlook after a "strong" first half.
Software-related stocks were also on the rise, benefiting from souring sentiment over AI valuations. Experian, LSEG, Pearson, Relx and Sage Group were among the top performers on the FTSE 100.
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