22nd Oct 2026 12:04
(Alliance News) - Stock prices in Europe were on the decline on Thursday afternoon, on concerns surrounding artificial intelligence sector spending, while a lofty oil price meant inflation worries remained a theme.
The FTSE 100 index fell 46.78 points, 0.4%, at 10,706.10. The FTSE 250 slumped 200.92 points, 0.8%, at 24,238.86, and the AIM all-share fell 8.07 points, 1.1%, to 755.05.
The Cboe UK 100 traded down 0.4% at 1,062.94, the Cboe UK 250 was 0.8% lower at 21,342.28 and the Cboe small companies was also down 0.8% at 18,984.91.
In European equity markets on Thursday, the CAC 40 in Paris was down 1.3%, while the DAX 40 lost 0.9%.
"The FTSE 100 fell as the mood across global markets darkened on Thursday," AJ Bell analyst Russ Mould commented.
"However, it outperformed Asian and European counterparts thanks to a decent showing from its contingent of energy stocks and traditionally defensive names."
Shell and BP rose 1.1% and 1.2%, while British American Tobacco added 1.0%. But miners declined, on falling metal prices. Anglo American shed 3.7%, while Rio Tinto fell 3.0%.
Equities in New York are set to open lower, on AI nerves. The Dow Jones Industrial Average is called down 0.6%, the S&P 500 down 1.0% and the Nasdaq Composite 1.7% lower.
Shares in Meta Platforms initially burst higher in extended trade following the Facebook owner's earnings overnight. But they were down 0.8% in pre-market dealings on Thursday, however.
Chief Financial Officer Susan Li said that AI agent Muse's computing intensity means that expanding its user base will require significant investment and she expects total serving costs to rise.
A barrel of Brent surged to USD111.61 midday Thursday, from USD109.14 late Wednesday afternoon.
Iran's Revolutionary Guards on Thursday threatened to strike American bases across the Middle East if the US military continues to escort ships through the Strait of Hormuz.
"The US military must know that if this trend continues, the conflict will extend to its bases in the region," the Guards, the ideological arm of Iran's military, said in a statement on their Sepah News website.
"This is a serious warning," they added.
Sterling traded at USD1.3383 midday Thursday, down from USD1.3389 at the time of the London equities close on Wednesday. Against the euro, it faded to EUR1.1924 from EUR1.1930.
The euro fell to USD1.1218 from USD1.1225 at the time of the closing bell in London on Wednesday. Against the yen, the dollar faded to JPY156.85 from JPY158.05.
The yield on the 10-year US Treasury narrowed to 5.07% early Thursday, from 5.11% late Wednesday afternoon. The 30-year yield narrowed to 5.37% from 5.41%.
Gold traded at USD4,087.51 an ounce midday Thursday, down from USD4,139.04 at the time of the London equities close on Wednesday.
London Stock Exchange Group shares rose 5.2%. It lifted its annual guidance and confirmed a deal to acquire Octus for USD3.54 billion, "creating a leading proposition" in credit and private market data.
LSEG said gross profit improved 9.5% on-year to GBP2.21 billion in the quarter ended September 30 from GBP2.02 billion.
Total income including recoveries climbed 8.4% to GBP2.50 billion from GBP2.31 billion, a touch above company compiled consensus of GBP2.48 billion.
Excluding recoveries, total income climbed 8.5% to GBP2.41 billion on-year, and was 8.8% higher on an organic, constant currency basis, the FTSE 100 listing said. This was also slightly ahead of company compiled consensus of GBP2.39 billion.
Reflecting the strong trading, LSEG lifted its annual guidance, now seeing organic constant currency growth in total income excluding recoveries of at least 8.0%. It previously saw growth between 7.0% and 7.5%.
Sainsbury's fell 3.5%. The grocer's like-for-like sales excluding fuel climbed 1.9% year-on-year in the first half ended September 12.
In the second quarter alone, growth was 1.2%, shy of company-compiled consensus of 1.9%.
The firm's underlying operating profit guidance before the half-year results ranged from GBP975 million to GBP1.08 billion. This was equivalent to GBP965 million to GBP1.07 billion on a continuing operations basis, excluding Argos.
Sainsbury's has lifted the lower end of that range to GBP1.03 billion. It still expects to deliver free cash flow of more than GBP500 million.
Inchcape was the worst FTSE 250 performer, slumping 8.2%. The automotive distributor hailed a "resilient" third quarter performance, but it cut its guidance amid woes in Australia.
"Australia remains a challenge - our key brand has underperformed, with deteriorating competitiveness in a rapidly-evolving market. We are taking further decisive action there, alongside our existing restructuring activity. We are confident these actions will improve our business in Australia over time, but we expect the current challenges in that market to continue impacting our performance there," Chief Executive Duncan Tait said in a trading statement.
Inchcape now expects a lower operating margin for 2026 of around 5.5%, with adjusted earnings per share growth of some 10%. It had previously expected a margin of around 6% and EPS growth of more than 10%.
Essentra shares climbed 6.6%. The manufacturer of plastic-injection-moulded, vinyl-dip-moulded and metal components said revenue in the 13 weeks to September 26 jumped 15% at constant currency, on a working day adjusted basis.
Essentra now expects financial 2026 adjusted operating profit to be towards the upper end of market expectations. It puts the market forecast between GBP32.3 million and GBP34.3 million. In the prior financial year, adjusted operating profit amounted to GBP32.0 million.
By Eric Cunha, Alliance News news editor
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