FTSE 100 edges up, FTSE 250 falls as tech stocks tumble

London's FTSE 100 index finished trading on Friday with a modest gain of 7.71 points, reaching 10,729.78, a 0.1% increase. This occurred as markets in New York experienced significant drops in technology stocks. The FTSE 250 index, however, ended the day lower, down 220.80 points or 0.9%, closing at 24,453.36. The AIM all-share index also declined by 10.37 points, or 1.4%, to 753.08.

Global Market Influences

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Concerns over artificial intelligence sector spending led to substantial losses in US tech stocks. This sentiment contributed to a broader market downturn across the Atlantic. The Dow Jones Industrial Average was down 0.8%, the S&P 500 fell 1.6%, and the Nasdaq Composite plunged 2.7% around the time of the London market close. European markets also showed weakness, with Frankfurt's DAX 40 falling 0.9%, while Paris's CAC 40 ended flat. Companies with significant exposure to data centres, such as Siemens Energy and Infineon Technologies in Germany, and Schneider Electric in Paris, were among those affected.

AJ Bell analyst Dan Coatsworth commented on the shift in investor sentiment towards technology shares. "For years, investors have treated tech as the golden ticket to wealth creation, and for a long time they have been richly rewarded," Mr Coatsworth said. "That enthusiasm is now evaporating, and some investors are racing for the exit." He added that "current price action implies tech investors want to jump off the treadmill rather than slow it down."

Company Financial Results

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In London, NatWest was the largest faller on the FTSE 100, shedding 8.8%. The bank reported its third-quarter results, showing an operating pretax profit rise of 1.9% to £2.23 billion, exceeding analyst consensus. This was achieved despite higher impairments and a slight miss on net interest income, with lower-than-expected costs offsetting these factors. NatWest chief financial officer Katie Murray stated that current expectations for balance sheet growth suggest the net interest margin will remain "broadly stable through 2027."

Pharmaceutical company AstraZeneca reported a 22% increase in its third-quarter pretax profit, reaching 3.96 billion dollars, up from 3.24 billion dollars a year earlier. Revenue also saw a rise of 6.7% to 16.21 billion dollars. The company maintained its full-year guidance for revenue growth and core earnings per share.

Mobico Takeover Offer

Shares in Mobico, the owner of National Express, climbed by 12% following a £308 million takeover proposal from Leita Mobility, a subsidiary of Spain's Autobuses de Leon. Under the proposed terms, Mobico shareholders would receive 46 pence per share. This offer represents a 55% premium to the transport operator's closing share price of 29.7p on October 20, the final trading day before an offer period commenced. The acquisition values Mobico at an enterprise value, including debt, of £2.32 billion.

Currency and Commodity Markets

The pound was trading at 1.3396 dollars late on Friday afternoon, a slight increase from 1.3369 dollars at the previous day's London equities close. Sterling also strengthened against the euro, rising to 1.1996 euros from 1.1977 euros. Earlier in the day, the pound had surpassed the 1.20 euros mark for the first time since April 2025. Brent crude oil was trading at 117.61 dollars a barrel, higher than the previous day's close, influenced by ongoing conflicts in the Middle East and Ukraine. Gold prices fell, with the precious metal quoted at 3,898.22 dollars an ounce, its lowest level in over a year.

The cryptocurrency market experienced a sell-off, with the platform Binance reporting it was working to resolve a "complex attack" that affected approximately 6.3 billion dollars in funds. Coinbase, another cryptocurrency trading platform, saw its shares fall by 12% in New York.