The FTSE 100 experienced a significant decline, falling 0.6% to a one-month low and is on track for its worst weekly performance since April, with a 2.5% drop. Renewed concerns about an AI-driven market bubble impacting UK and European equities, coupled with weakness in cyclicals and risk-sensitive stocks, drove the downward trend.
- The FTSE 100 fell 0.6% to a one-month low.
- The index is heading for a 2.5% weekly drop, its worst since April.
- Rolls-Royce and Babcock declined around 3–3.5%.
- BAE Systems fell 1.6%.
- BP and Shell dropped 1.4% and 1.1%, respectively.
- Major miners lost 1.2–4%.
- Banks, including Standard Chartered, Barclays, Lloyds, and HSBC, were down 1.1–2.3%.
- Babcock reaffirmed its targets for an 8% margin in 2026 and over 9% longer-term.
- Unilever and RELX gained about 1%.
- Diageo rose 1.5%.
The overall market sentiment is bearish, with several sectors experiencing notable losses. Risk-sensitive stocks and cyclicals are particularly vulnerable, signaling potential concerns about future economic growth and market stability. However, defensive stocks showed resilience, outperforming the broader market, suggesting investors are seeking safer havens during this period of uncertainty.