Britain’s FTSE 100 was set to record its most significant decline in more than seven months, alongside a weekly drop on Friday, as concerns over artificial intelligence, prompted by shifts in the US political environment, triggered a worldwide selloff.
The blue-chip FTSE 100 index fell 2.2% to 10,540.78 points by 1143, on track for its worst session since mid-March, while the midcap FTSE 250 slipped 1.2%.
- The Democrats’ capture of the US House and Senate earlier this week has raised apprehensions regarding AI regulation, a deceleration in data-centre construction, and hyperscalers becoming more fiscally conservative.
- The S&P 500 and the Nasdaq marked their sharpest one-day falls since April 2025 on Thursday.
- The jitters spilt over to global markets, with Europe’s STOXX 600 down 1%.
- Most sectors in London experienced a decline, with the exception of precious metal miners, which saw an increase of 1.2%.
- Traditionally defensive sectors such as pharma and personal care, along with drug and groceries, also slid around 3.5% each after two sessions of gains.
- “When $2.5 trillion of value is lost from one of the major US stock market indices in a day, it’s understandable that investors are feeling on edge,” said Dan Coatsworth.
- Oil prices declined on Friday, exerting downward pressure on energy stocks, which fell by 2.5%.
- In a separate statement, Lloyds reported that British house prices experienced their most rapid annual decline in October, driven by elevated mortgage costs that have negatively impacted demand.
- Man Group opens new tab bottomed the FTSE 250 with a 6.5% drop after Kuwait’s public pension fund on Thursday won a lawsuit against the asset manager.
- Georgia’s TBC Bank opens new tab topped the midcap index with a 6.1% jump after its third-quarter net profit rose.
