Stocks edge higher as investors eye US-Iran peace talks

Back in the UK, student accomodation developer Unite Group (UTG.L) said that its hedging strategy for utility costs meant it is “well protected in the near-term” from the impact of recent increases in energy prices since the start of conflict in the Middle East.

In a trading update, published Friday, Unite said that 74% of beds were now reserved for the 2026/27 academic year.

The company said its sales progress for the 2026/27 academic year remained in line with guidance provided in its preliminary results for an outturn at the lower end of 93% to 96% occupancy and 2% to 3% rental growth.

In addition, Unite said it was on track to deliver guidance of £300m to £400m of asset disposals in 2026.

Mark Crouch, market analyst for eToro, said: “Unite Group PLC’s update is unlikely to excite investors in the near term. Reservations are tracking slightly behind last year at 74%, with occupancy and rental growth guided to the bottom end, hardly the momentum the market had been hoping for.”

Shares in FTSE 250-listed (^FTMC) firm were up just over 1% at the time of writing on Friday.

The world’s largest contract chipmaker TSMC (2330.TW, TSM) said revenue had risen 35.1% in the first quarter to 1.13 trillion new Taiwan dollars (£26.57bn).

The company said revenue for March came in at approximately NT$415.19 billion, up 30.7% from February and 45.2% higher than the same month last year.

Hargreaves Lansdown’s Britzman said: “There may be plenty of noise elsewhere in the world, but the AI buildout shows little sign of slowing, with demand for AI hardware as strong as ever.

“Investors need only look at soaring GPU rental prices, tightening availability, comments from cloud CEOs, and now a strong set of sales from TSMC for confirmation.”

TSMC’s US-listed shares climbed nearly 2% in pre-market trading on Friday morning.

On the UK’s FTSE 250 (^FTMC), shares in AO World (AO.L) rose 4% in early trading, after the online electricals retailer said it expected pre-tax profits to be at the “top end” of guidance.

In a trading update on Friday, AO said total group revenue is expected to have increased by around 11% in its 2026 fiscal year.

The company said adjusted profit before tax was expected to be in line with previously upgraded guidance, anticipating that it would be at the top end of a range of £45m to £50m.

In addition, AO said that it had hedging arrangements in place ahead of the recent geopolitical developments, covering approximately 80% of its forecast fuel usage and 100% of electricity usage, which cover the full 2027 financial year trading period.

Dan Coatsworth, head of markets at AJ Bell (AJB.L), said: “Four years since retreating from Germany with its tail between its legs, electricals retailer AO is firmly back in growth mode thanks to robust UK trading.

“Importantly, profits are growing ahead of sales which implies it is running a tight ship and coping with material cost pressures.”

Oil prices jumped on Friday morning, amid concerns over the US-Iran ceasefire. Brent crude futures (BZ=F) were up 1.5% to $97.38 a barrel at the time of writing, while West Texas Intermediate futures (CL=F) advanced 1.6% to $99.45.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “The ongoing closure of the Strait of Hormuz remains the key sticking point, with president Trump warning Iran against imposing transit fees on vessels moving through the crucial shipping lane – a concern that has also been echoed by the UAE.”

“Shipowners are still waiting for clearer guidance on access, leaving one of the world’s most important energy arteries largely closed to traffic,” he said. “Until it reopens, oil prices are unlikely to return to more stable levels, keeping inflation worries alive for investors.”

“Getting the waterway flowing again will be a clear priority for the White House, which, despite some strongly worded social media posts, doesn’t seem to have the leverage needed to force a full reopening,” Britzman added.

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