20th Oct 2026 12:08
(Alliance News) - Stock prices in Europe were on the decline on Tuesday afternoon, after lingering artificial intelligence sector worries were exacerbated by an underwhelming equity market debut by a new Seoul listing, while eyes remain on France after a dramatic weekend of protests.
In London, the FTSE 100 index fell 60.13 points, 0.6%, at 10,704.56. The FTSE 250 fell 217.59 points, 0.9%, to 24,160.90, and the AIM all-share fell 7.19 points, 0.9%, to 761.31.
The Cboe UK 100 traded down 0.6% at 1,062.21, the Cboe UK 250 was 1.1% lower at 21,259.96, while the Cboe small companies was down 0.4% at 18,919.39.
In European equity markets on Tuesday, the CAC 40 in Paris was down 0.8%, while the DAX 40 in Frankfurt retreated 0.7%.
"Last night's tech recovery on Wall Street didn't carry over into Asian markets with AI-related names in the region facing renewed pressure on their share prices," AJ Bell analyst Russ Mould commented.
"Strikingly, stock in South Korean data centre builder Elice lost a third of its value on its first day of trading with concerns about the sustainability of AI spend ramping up. European markets endured a sluggish start against this volatile backdrop, with oil prices ticking back above USD110 per barrel, the highest level since May, as tensions around Ukraine and the Middle East continue to escalate."
Among the European stocks hit by the enduring AI nerves, chipmaker ASML lost 2.8% in Amsterdam, while semiconductor firm Infineon declined 3.0% in Frankfurt.
Tech investors Polar Capital Technology Trust and Scottish Mortgage fell 3.1% and 2.3% in London.
In New York, the Dow Jones Industrial Average is called up 0.2%, but the S&P 500 down 0.1% and the Nasdaq Composite 0.5% lower.
Sterling rose to USD1.3340 on Tuesday afternoon, from USD1.3316 at the time of the London equities close on Monday. Versus the euro, it climbed to EUR1.1893 from EUR1.1869. Sterling moved close to the EUR1.19 level, a threshold it has not traded at since May 2025.
The UK unemployment rate surprisingly declined in the three months to August, data on Tuesday showed.
The Office for National Statistics said the jobless rate fell to 4.7% in the three month period to August from 4.9% in the three month stretch to July. It had been expected to remain at 4.9%, according to market consensus cited by FXStreet.
According to the ONS, payrolled employees in the UK fell by 111,000 on-year in August but edged up by 1,000 on-month.
An early estimate for September showed payrolled employees were down by 66,000 annually, but up 13,000 on-month.
Over the three-month period, average total earnings growth was 3.7%, cooling from 3.9% in the three months to July, and below the consensus cited by FXStreet of 3.8%.
Excluding bonuses, earnings growth picked up to 3.7% in the three months to August from 3.6% in the period to July. Consensus had this wage inflation measure staying at 3.6%, according to FXStreet.
Looking at the private sector alone, a figure closely tracked by the Bank of England, total pay growth was 3.1% in the three-month period, easing from 3.3%. When stripping out bonuses, however, it accelerated to 3.0% from 2.9%.
Analysts at Barclays commented: "The totality of labour market data would continue to point to a state of slack, although the LFS data alone indicates that the labour market has stabilised and signs of improvement are growing if the August strength is repeated. The print confirms that wage growth remains contained. We think the release will give the MPC more confidence in its September meeting assessment that there has been some stabilisation in slack."
The euro fell to USD1.1211 midday Tuesday from USD1.1221 late Monday afternoon. Against the yen, the buck fell to JPY158.09 from JPY158.43.
"The euro remains hostage to France," SPI Asset Management analyst Stephen Innes commented.
"Europe remains the awkward side of the board. French fiscal stress keeps EUR/USD on OAT-watch."
The yield on the 10-year French obligation assimilable du tresor, or OAT, spiked to around 4.97% on Tuesday, more than 150 basis points above the comparable German government bond.
Gold was quoted at USD4,120.92 an ounce, down from USD4,144.06 at the time of the closing bell on the London Stock Exchange on Monday. Brent oil was quoted at USD111.49 a barrel, up from USD108.29. Brent hit its highest level since May.
In London, Bunzl shares rose 1.9%. It said it continues to expect 2026 to be a "foundation for future profit growth" as it reiterated full-year guidance after a "good performance" in the third quarter.
The London-based distribution and outsourcing company said revenue in the quarter grew by 3.1% at constant exchange rates and broadly the same at actual exchange rates.
Underlying revenue increased by 3.7%, supported by both inflation, including year-on-year product cost increases, and volume growth, which continues to be driven by a strong performance in the North America distribution business. Growth was slower than 4.4% posted in the second quarter of 2026 but faster than 2.0% in the first three months of the year.
Wickes climbed 3.5%. The home improvement retailer reported a "significantly improved" performance in its Retail business helping it deliver sales growth in its third quarter.
Wickes said revenue grew 4.5% to GBP439 million in the quarter ended September 26, or by 4.0% like-for-like.
"Our continued market share gains demonstrate the strength of our value-led proposition and our ability to outperform in a competitive market," said Chief Executive David Wood.
Genuit shares slumped 15%. The provider of sustainable water and climate products now expects underlying operating profit of approximately GBP84 million for 2026, below company-compiled analyst consensus of GBP91 million to GBP96 million and down from GBP94.4 million in 2025.
Genuit said revenue for the nine months to September 30 rose 3.5% to GBP464.5 million on a reported basis, but fell 4.3% on a like-for-like basis.
James Cropper shot up 11% as it said it expects annual earnings ahead of market expectations. The paper and packaging firm explained its first half topped expectations.
In a trading statement, it reported a "strong performance" during the half-year ended September 26. Trading was "ahead of the board's expectations, principally reflecting a much stronger than anticipated performance by the group's Paper & Packaging business from a combination of revenue growth and cost management".
It now expects annual adjusted earnings before interest, tax, depreciation and amortisation to be around 10% to 20% ahead of current market expectations of GBP9.4 million. That gives a range between GBP10.3 million and GBP11.3 million, James Cropper adds, ahead of the GBP8.9 million achieved in financial 2026.
By Eric Cunha, Alliance News news editor
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Cropper (J)Genuit GroupWickes Group P.BunzlScottish MortgagePolar Capital Technology Trust