By Islam El-Sakka
London's FTSE 100 closed marginally higher on Friday while major US indices tumbled as concerns over artificial intelligence spending triggered a sharp sell-off in technology stocks.
European Markets
The FTSE 100 added 7.71 points, or 0.1%, to finish at 10,729.78. The FTSE 250 dropped 0.9% to 24,453.36 and the AIM all-share fell 1.4% to 753.08. For the week, the FTSE 100 gained 0.4%, the FTSE 250 rose 0.9% and the AIM all-share climbed 0.9%. In continental Europe, Paris's CAC 40 ended flat while Frankfurt's DAX 40 declined 0.9%, weighed down by Siemens Energy, Infineon Technologies and Hochtief, all with significant data centre exposure. Schneider Electric also fell in Paris.
US Tech Sell-Off
Wall Street saw steep losses, with the Dow Jones Industrial Average down 0.8%, the S&P 500 down 1.6% and the Nasdaq Composite plunging 2.7%. Analysts described an "AI reality check" after Alphabet plunged 12% on Thursday, Amazon fell 1.6% and Intel slumped 30% on Friday following earnings that unnerved investors. SPI Asset Management's Stephen Innes said the AI boom was "beginning to eat its own tail" as spending drives up costs.
Currency and Commodities
Sterling rose to $1.3396 and €1.1996, surpassing the €1.20 threshold for the first time since April 2025. The euro was little changed at $1.1163. The dollar fell to 157.50 yen. Brent crude climbed to $117.61 a barrel, its highest since April, amid Middle East and Russia-Ukraine tensions. Gold dropped to $3,898.22 an ounce, its weakest level in over a year. US Treasury yields eased, with the 10-year at 4.94% and the 30-year at 5.31%.
Notable Stock Movers
NatWest was the FTSE 100's worst performer, falling 8.8% after guidance on net interest margin spooked investors. Chief financial officer Katie Murray said margins would remain broadly stable through 2027. The bank reported third-quarter operating pretax profit up 1.9% to £2.23 billion. AstraZeneca rose 7% after pretax profit jumped 22% to $3.96 billion and revenue grew 6.7% to $16.21 billion. Mobico surged 12% after backing a £308 million cash takeover by Leita Mobility, a subsidiary of Spain's Autobuses de Leon. Polar Capital Technology Trust and Computacenter each fell 6% due to their exposure to US tech stocks.
Crypto Incident
Binance said it was working to resolve a "complex attack" affecting around $6.3 billion in funds, with investigations uncovering additional breach points. Coinbase shares fell 12% in New York.
