23rd Oct 2026 12:19
(Alliance News) - Blue-chip stock prices in Europe were lower Friday afternoon, with a soaring oil price on continued Middle East nerves, and enduring artificial intelligence spend concern keeping optimism at bay at the end of the week.
The FTSE 100 index fell 60.41 points, 0.6%, at 10,664.62. It has lost 2.0% so far this week.
The FTSE 250, however, climbed 33.95 points, 0.1%, at 24,245.66, but the AIM all-share fell 2.27 points, 0.3%, to 748.66.
The Cboe UK 100 traded down 0.5% at 1,059.19, the Cboe UK 250 was up 0.1% at 21,318.21, while the Cboe small companies was down 0.2% at 18,980.35.
In mainland European equity markets on Friday, the CAC 40 in Paris was down 0.7%, while the DAX 40 shed 0.9%.
Stocks in New York are set for a tepid open. The Dow Jones Industrial Average is called down 0.6%, the S&P 500 0.2% lower and the Nasdaq Composite flat. The Nasdaq Composite plunged 2.6% on Thursday.
SPI Asset Management analyst Stephen Innes noted that AI worry has given bond prices some support.
"The AI trade has developed a peculiar habit of solving one problem by creating another. When technology stocks rally, investors begin contemplating another enormous wave of infrastructure spending, corporate borrowing and competition for capital, which hardly makes life easier for the Treasury market. But when those same stocks sell off, anticipated capital expenditure begins looking less certain, prospective debt issuance becomes less intimidating and bond yields suddenly find a reason to decline," the analyst said.
"It is a fascinating reversal of the relationship that has helped define the investment boom."
The yield on the US 10-year Treasury was quoted at 4.99%, narrowing from 5.02% late Thursday afternoon UK time. The yield on the US 30-year Treasury was quoted at 5.30%, narrowing from 5.33%.
Sterling traded at USD1.3379 on Friday afternoon, up from USD1.3365 at the time of the London equities close on Thursday. Against the euro, it rose to EUR1.1940 from EUR1.1933.
The UK private sector grew at a faster pace than expected in October, a preliminary survey reading showed Friday.
Supported by the fastest rise in new work in over two years, the S&P Global flash composite purchasing managers' index rose to 53.1 points in October, from the previous month's 52.0 in September. It was the best composite PMI reading in eight months.
Now above the 50-point neutral mark, the reading suggests UK private sector growth has picked up. The flash composite PMI topped the FXStreet-cited forecast of 51.8.
A US flash PMI reading is released at 1445 BST. The University of Michigan's latest consumer sentiment tracker follows at 1500.
The euro was steady at USD1.1200 against USD1.1201. Against the yen, the dollar fell to JPY156.76 from JPY157.20.
Brent surged to USD114.40 a barrel midday Friday, from USD111.18 late Thursday afternoon. Brent traded around its highest level since early May.
Seven oil tankers caught fire or were damaged in the Strait of Hormuz after being hit by Iran or striking naval mines, Tehran said on Thursday, according to the Associated Press.
Focus this week has been on domestic output. The UK green lit drilling at Jackdaw earlier this week, with a decision on Rosebank on the horizon.
UK Prime Minister Andy Burnham on Friday said the decision on the Rosebank oil field will be "done properly" when asked about the potential for an approval to be overturned by the courts.
Asked about the possibility of courts overturning a Rosebank approval, the prime minister said on Friday: "Well, that's a decision that will be taken in due course.
"What we have done this week is taken great care over the decision about Jackdaw because it wasn't done properly in the past, and that led to the decision being struck down. What people can be certain about is things will be done properly going forward," Burnham said.
"And in relation to Jackdaw, people will question: Was that the right decision? It is going to be a bridge to a renewable future? The funds that it will release will be able to go into building out that clean energy system that the country needs, which is a further part of our national resilience going forward."
Ithaca Energy, which owns a minority chunk of Rosebank, traded 2.9% higher on Friday afternoon, supported by the lofty oil price.
Elsewhere in London, Burberry shares fell 2.8%, after results from luxury goods peer Kering spooked the market. Kering plunged 13% in Paris.
The luxury goods company and owner of the Gucci fashion house said revenue in the third quarter is largely flat on-year at EUR3.35 billion, but weakened 1% on a comparable basis. Gucci alone saw a 4% reported sales fall, a 6% decline on a comparable basis.
"The recovery of Gucci remains our defining priority," Kering CEO Luca de Meo said.
Smith & Nephew, came close to combining with Johnson & Johnson's DePuy Synthes orthopaedics unit, but discussions fell apart over a leadership disagreement, the Financial Times reported on Friday.
Shares in medical technology company Smith & Nephew were 1.7% higher.
Citing people familiar with the matter, the FT said the talks were at an advanced stage.
However, several weeks ago they "collapsed at the last minute" after Watford, England-based medical technology firm S&N refused to allow former chief executive Namal Nawana to lead the combined business. The company instead favoured current CEO Deepak Nath, the FT's sources said.
Johnson & Johnson was down 0.6% in pre-market trade in New York.
Boohoo Group rose 4.0%. Debenhams owner boohoo group reported its first statutory pretax profit in five years, as its "turnaround continues at pace".
The fashion retailer said pretax profit in the six months to August 31 amounted to GBP28.3 million, swinging from a GBP17.9 million loss a year prior. Profit was supported by a GBP40.6 million non-cash credit from the sublease of a US distribution centre.
"The turnaround continues at pace. The group has returned to GMV growth, gross margins are expanding and returns rates lowering," Chief Executive Officer Dan Finley said. "This is the first time the group has delivered positive profit before tax since August 2021. I am pleased to report that net debt is expected to be negligible at year-end. This is significantly ahead of our original guidance provided at the start of the year. I see material opportunities ahead and we are fully focused on maximising them."
Revenue fell 3.0% to GBP409.6 million from GBP422.4 million.
"Under CEO Dan Finley, the company's fortunes have been transformed. Much of this has been built around the Debenhams online marketplace, with its Boohoo and PrettyLittleThing brands only just starting to return to growth. Finley has pursued a strategy of selling third-party products on its platform. These sales are higher margin than its traditional fast fashion activities where it handled the manufacturing and logistics itself. The consumer backdrop remains unhelpful, but Debenhams' improved financials and healthy balance sheet mean it is better placed to withstand any drop off in demand," AJ Bell analyst Russ Mould commented.
Gold was quoted at USD4,022.20 an ounce, fading from USD4,054.71. Gold fell to an intraday low of USD3,986.71, its weakest level since July.
XS.com analyst Rania Gule commented: "Gold prices are entering a critical phase as trading approaches the USD4,000-per-ounce mark, with energy-driven inflation, expectations for US monetary policy, and US dollar movements increasingly shaping market sentiment. Notably, gold, traditionally viewed as a safe-haven asset during periods of uncertainty, has failed to benefit meaningfully from the equity sell-off and declining US Treasury yields. Instead, the precious metal has come under renewed selling pressure.
"In my view, this price action reflects a shift in market priorities. Investors are no longer assessing geopolitical risks and financial-market volatility in isolation; they are increasingly focused on the inflationary consequences of these developments and their potential implications for Federal Reserve policy. At this stage, the most influential factor shaping the gold price outlook is the rise in oil prices and the associated risk of renewed inflationary pressures."
By Eric Cunha, Alliance News news editor
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