18th Nov 2025 12:02
(Alliance News) - Stock prices in Europe suffered on Tuesday as tech nerves from New York continued to weigh on equity market enthusiasm across the globe.
The FTSE 100 index slumped 117.66 points, 1.2%, to sit at 9,557.77 around midday Tuesday. The blue-chip index recently had the 10,000 mark in sight, but looks set for a fourth successive daily decline.
The FTSE 250 was down 226.16 points, 1.0%, at 21,461.74, and the AIM All-Share was 8.58 points lower, 1.2%, at 735.87.
The Cboe UK 100 was down 1.3% at 953.91, the Cboe UK 250 was down 1.1% at 18,539.27, and the Cboe Small Companies was 0.7% lower at 17,559.91.
The CAC 40 in Paris was down 1.3%, while the DAX 40 in Frankfurt fell 1.2%.
"The tech-focused selloff seen in the US has evidently resulted in global contagion, but it has become notable that this has started to spread throughout other parts of the market landscape," Scope Markets analyst Joshua Mahony commented.
"In Europe, the relatively minimal tech weighting means that much of the weakness comes amid concerns around a potential global selloff in the event of a tech revaluation rather than questionable pricing in those markets per se. This means that the relatively boring and traditional construct of the FTSE should ensure its outperformance in the eventual moment that the AI bubble pops."
The pound fell to USD1.3143 early Tuesday afternoon, from USD1.3169 at the time of the London equities close on Monday. The euro was down at USD1.1586 against USD1.1598. Against the yen, the dollar rose to JPY155.40 from JPY155.12.
Japan has warned its citizens in China to be careful of their surroundings and to avoid big crowds amid a diplomatic row over Prime Minister Sanae Takaichi's comments on Taiwan. The escalating spat has already seen Beijing advise Chinese citizens to avoid travelling to Japan.
"Pay attention to your surroundings and avoid as much as possible squares where large crowds gather or places that are likely to be identified as being used by many Japanese people," the Japanese embassy in China said in a statement on its website dated Monday.
In New York, the Dow Jones Industrial Average is called down 0.5%, the S&P 500 0.3% lower and the Nasdaq Composite down 0.4%.
The yield on the 10-year US Treasury narrowed to 4.11% from 4.13% at the time of the London equities close on Monday. The 30-year yield eased to 4.72% from 4.73%.
Nvidia shares are down 1.0% in pre-market dealings, on the eve of its quarterly earnings.
XTB analyst Kathleen Brooks commented: "Nvidia results are not just any earnings report, they are treated like a macro event. How it performs will have an impact on US and global financial markets. Also, if its stock price falters, then it could threaten the entire AI trade.
"One company's results cannot save the AI trade, but it will be interesting to see how the market reacts to another monster earnings report from Nvidia. In three out of the last five quarterly earnings reports, the stock price has fallen, even though earnings surprised on the upside."
In London, tech nerves hit shares in Scottish Mortgage Investment Trust, down 1.8% and Allianz Technology Trust, 1.9% lower. The duo are invested in a who's who of major tech sector names, Nvidia among them.
ICG shot up 5.5%, the best large-cap performer. It said European asset manager Amundi will take a near 10% stake in the firm. ICO also reported better-than-expected half-year results.
Deutsche Bank analysts commented: "Whilst there are no financial targets outlined, we would view this as ICG having gained access to a potentially very valuable option, through the fund-raising potential in a largely new channel, whilst needing to commit limited incremental resource/investment. We think it also signals ICG's ambition to be a genuine global top tier player in the industry over the long term."
Crest Nicholson shares plunged 9.9%. It warned annual profit could land below guidance, as the housing market grapples with UK government budget uncertainty. The housebuilder said adjusted pretax profit for the year ended October 31 is expected to be at "the low end of, or marginally below" a guidance range of GBP28 million to GBP38 million. It is an outcome that reflects a "housing market that has remained subdued through the summer, and the continued uncertainty surrounding government tax policy ahead of the forthcoming budget".
"While near-term market conditions are expected to remain challenging, our enhanced operating discipline, improved balance sheet and clear strategic direction provide a robust platform to navigate the current environment and deliver long-term, sustainable growth," Crest Nicholson added.
FirstGroup slumped 13%. It reported increased first half profit boosted by acquisitions, but cautioned the loss of the South Western Railway national rail contract will lead to "marginally" lower revenue in First Rail.
FirstGroup said pretax profit rose 8.5% to GBP76.3 million in the 26 weeks to September 27 from a restated GBP70.3 million the year prior.
FirstGroup anticipates First Rail's adjusted revenue and adjusted operating profit will be "marginally lower" in financial 2026 year-on-year, with lower fees following the transfer of SWR to public ownership.
A barrel of Brent fell to USD64.22 early Tuesday afternoon, from USD64.46 late Monday afternoon. Gold fell to USD4,042.07 an ounce from USD4,071.30 late Monday afternoon.
By Eric Cunha, Alliance News news editor
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