- FTSE 100 down 42 points to 9,717
- Mixed performances in Europe, Asia
- US markets open strong
- Amazon soars following Q3 earnings beat
4.51pm: FTSE 100 snaps winning streak
Amid elevated volatility, the FTSE 100 pulled back from record highs to close 42 points lower at 9,717.
“The FTSE 100 is set for its first daily loss in ten sessions, bringing to a close a remarkable burst of bullish momentum for the index,” IG chief market analyst Chris Beauchamp wrote.
“All good things have to come to an end, as gold bulls will testify, but the latest record high and its lower valuation has helped to keep the index on investors’ radar, especially when bubble fears are rampant on Wall Street.”
3.57pm: Caution prevails
The FTSE 100 was on track to close down 0.5% as investors turned cautious heading into the weekend.
Sentiment has cooled from only a week ago when they were “brimming with confidence,” according to Capital.com senior market analyst Daniela Hathorn.
“Global markets have turned cautious this week as the Federal Reserve tempered expectations for aggressive rate cuts and investors reassessed the lofty valuations driving Big Tech higher,” Hathorn wrote. “Powell’s comments made clear that a December cut is not guaranteed, emphasizing the need for optionality as the Fed navigates mixed signals in the US economy.”
Earnings have added “another layer of volatility,” with a mixed bag from tech giants Microsoft, Alphabet, Meta, Apple and Amazon.
“Still, the results underscore a broader challenge — expectations are sky-high. Any earnings miss or guidance downgrade now triggers an outsized reaction,” Hathorn noted. “This has revived debate over whether the current AI-driven boom represents a genuine industrial transformation or shades of speculative excess.”
3.06pm: London IPOs begin to flow
Shares in the London Stock Exchange's newest arrivals have been given a mostly warm welcome this week as the trickle of flotations has turned into a relative torrent, with three new arrivals this week.
Friday saw Princes Group PLC (LSE:PRN) and Cindrigo Holdings Ltd (LSE:CINH) make their debuts after raising £200 million and £2 million respectively in their initial public offers.
Their London debuts follow the listing of Shawbrook Group PLC (LSE:SHAW) a day earlier, after finding demand for almost £400 million in existing and new shares.
Before this month, just 13 new companies had floated in London this year, raising £208 million between them, compared to the £600 million raised this week.
This handful of successful IPOs, especially if accompanied by an active after-market in the shares, "would be a welcome boost for London," said Russ Mould, investment director at investment platform AJ Bell.
"Successful floats could tempt other companies to test the waters in London, especially as the FTSE 100 index’s run of all-time highs suggests sentiment is more favourable towards UK-listed assets, and it may be easier to find willing buyers at valuations that are sufficient to satisfy would-be sellers. After all, mood tends to follow price,” Mould said.
2:09pm: Wall Street higher
Across the Atlantic, US stocks opened higher on Friday, led by a surge in tech shares after upbeat earnings from Amazon and Apple lifted investor sentiment.
The Dow Jones rose 71 points, or 0.2%, to 47,593, while the S&P 500 gained 0.5% and the Nasdaq jumped 1%, buoyed by a broad rebound in big tech. The Russell 2000 was little changed.
Amazon shares soared about 12% after the company’s third-quarter results handily beat forecasts, driven by a 20% jump in revenue from its cloud unit, Amazon Web Services, signaling renewed enterprise demand. Apple stock also climbed after stronger-than-expected earnings and upbeat guidance for the holiday quarter.
"Strong earnings from Amazon and Apple reignited investor confidence, injecting fresh energy into the global market rally after a brief pause," Tickmill Group's Patrick Munnelly said.
Elsewhere, Netflix shares were on the rise after announcing a 10-for-1 stock split, a move that could pave the way for its potential inclusion in the Dow.
1.44pm: Barclays projects rate cut next week
Barclays analysts expect the Bank of England to vote 5-4 in favour of a 25 basis point rate cut to 3.75% at its meeting next week.
"Back in September, the committee was weighing up the balance of risks on both sides of its inflation outlook. We think the data since then, as well as signals of future fiscal policy changes, will have shifted that balance, leaving the committee more confident that disinflation is underway,” the firm wrote in a note.
The bank highlighted that money markets may be underestimating the likelihood of a reduction in borrowing costs. Traders currently assign just a 27% probability of a cut from the current 4%.
Barclays said the decision remains finely balanced, with “equally valid arguments” for keeping rates on hold.
Other major banks have also flagged the potential for easing. Goldman Sachs reiterated its forecast for lower borrowing costs, while Deutsche Bank described the MPC vote as a “very close call.”
12.55pm: Eurozone inflation eases
Eurozone inflation slowed in October, with consumer prices rising 2.1% year-on-year, down from 2.2% in September, according to Eurostat’s early estimate.
Food, alcohol and tobacco inflation fell from 3% to 2.5%, while energy prices dropped 1% versus -0.4% in September. Non-energy industrial goods rose 0.6%, down from 0.8%.
Services inflation, the highest category, edged up to 3.4% from 3.2%, still below the UK’s 4.7% rate in September.
The data highlight a calmer pricing environment across continental Europe compared with the UK and US, even as central bankers remain cautious about cutting interest rates.
The European Central Bank (ECB) held rates steady yesterday, despite the softer inflation backdrop.
Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics, believes only a washout in November can deliver an ECB rate cut now.
“We still see little in these data to convincingly tip the scale in favor of an additional rate cut in December, or in the first quarter, for that matter,” Vistesen wrote.
The firm expects headline inflation to tick higher to 2.2% in November and December, with core pressures sustained, pointing to a fourth-quarter outturn above the ECB’s September forecasts.
Combined with stronger-than-expected third-quarter GDP growth, this makes additional cuts unlikely unless the November data surprise to the downside.
11.46am: FTSE movers
Media and leisure stocks are leading the fallers on the FTSE as we approach midday.
WPP is continuing its decline from earlier in the week, down another 4.4%, as analysts dug into its recent update.
UBS cut its price target to 280p from 360p and kept its 'sell' rating, warning that organic growth would remain negative for at least the next four quarters. Deutsche Bank took a more forgiving line, with analyst Steve Liechti calling the updated guidance “sensible caution” ahead of a full strategy review under the new chief executive early next year.
Auto Trader is also down 3.75%.
Hotel owners Whitbread and InterContinental Hotels are next, down 2.2% and 1.8%.
One of the risers is Fresnillo PLC (LSE:FRES), which announced a £724 million all-cash deal to buy Canada’s Probe Gold.
Expanding its horizons further north, the Mexico based group will pay C$3.65 a share, a 24% premium to Probe’s 30-day average price on the Toronto exchange.
Broker Peel Hunt noted that the announcement "provides no economics" on the development of Novador.
"However, in our view, management is seeking to address concerns around the lack of material growth within the portfolio and may also be signalling challenges in advancing the group’s existing exploration and development projects.
11am: Mixed end to the week for global markets
Wall Street futures are pointing to a stronger open, but for other global markets, it's a mixed picture as the week and October draw to a close.
The FTSE 100 is now 49 points, or 0.5% lower at 9,711.1, while Frankfurt's Dax has fallen 0.4% and the Paris CAC 40 is 0.2% off the pace.
Tokyo's Nikkei 225 bucked the trend in Asia, closing over 2% higher, while the Hang Seng in Hong Kong fell 1.4% and Shanghai's SSE Composite ended 0.8% lower. The BSE Sensex in Mumbai fell 0.6% and Sydney's ASX 200 retraced earlier losses to end just a few points down.
"European markets are on the back foot in early trade, with the FTSE 100 leading the declines as we close out a week that has seen major volatility from a plethora of key announcements," commented Scope Markets' Joshua Mahony. "Coming off the back of yesterday’s ECB rate pause, this morning saw the latest inflation release dominate as core CPI rose unexpectedly to 2.4%.
"US futures point towards a strong close to the week, with blockbuster earnings from Amazon (+12%) providing a welcome boost. Despite many overlooking Amazon as a core AI play, they posted huge numbers related to their artificial intelligence investments associated with the AWS cloud business," Mahony added.
9.30am: Small caps in the spotlight
Cindrigo Holdings Ltd (LSE:CINH) made its London Stock Exchange debut after raising £2.06 million at 12p a share, valuing it at just over £40 million. The clean energy developer plans to restart its Finnish waste-to-energy plant this year and advance geothermal projects in Germany, aiming to build long-term, sustainable power assets across Europe. Watch more
Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) has kicked off construction at its Galactica-Pegasus helium project in Colorado, a big step toward first production by December 2025. Working with partner Blue Star Helium, the company is building pads, pipelines, and access roads—keeping everything on track for helium output next year and CO₂ sales in 2026. Read more
Tertiary Minerals PLC (AIM:TYM, OTC:TTIRF) is set to kick off a new 1,000-metre drilling round at its Mushima North project in Zambia, following last year’s high-grade silver and copper hits. With permits ready and equipment moving in, the company aims to expand the deposit and keep momentum before the rainy season halts exploration. Read more
Ariana Resources PLC (AIM:AAU, ASX:AA2) kicked off exploration at its Zimbabwean Dokwe gold project and launched its second Turkish mine, Tavşan, after a busy quarter and an A$11 million Australian IPO. With new rigs on site and production starting in Türkiye, the company is set for growth, aiming for development decisions in 2026. Read more
Solvonis Therapeutics PLC (LSE:SVNS) has tidied up its structure, consolidating IP under an Irish holding company and setting up R&D hubs in the UK, Ireland, and the US. The sale of a legacy subsidiary, winding down dormant entities, and new share issues streamline operations, leaving the biotech ready to focus on CNS drug development. Read more
9am: FTSE extends losses
The FTSE 100 has fallen further, despite indications of a strong opening on Wall Street when trading gets underway this afternoon.
The London market is currently 28 points down at 9,731.78, a loss of 0.3%.
On the continent, Frankfurt's DAX is 0.4% weaker as the morning progresses, while the Paris CAC 40 has shed 0.2%.
US futures markets are currently pointing to a 1.2% surge for the Nasdaq at the open, with Amazon expected to jump more than 12% following its quarterly earnings report yesterday. S&P 500 futures indicate a 0.7% rise, with the Dow Jones lagging with just a 0.1% gain.
8.15am: Footsie falls at the open
The FTSE 100 opened lower, as predicted, declining 17 points to 9,743.07 in the first 15 minutes of Friday trading.
WPP PLC (LSE:WPP) led the decliners, down 1.6%, after the advertising giant reported weak third-quarter results on Thursday. J Sainsbury PLC (LSE:SBRY), Standard Chartered PLC (LSE:STAN) and Burberry Group PLC (LSE:BRBY) added further downward pressure on the blue-chip index.
On the upside, Fresnillo PLC (LSE:FRES) jumped 1.9%, while Haleon PLC (LSE:HLN, NYSE:HLN) rose 1.6% to add to yesterday's gains.
"The mixed market mood from overseas weighed on the FTSE100 at the open, although the premier index remains close to record highs," commented interactive investor's Richard Hunter.
"WPP failed to find any friends with another share price decline following yesterday’s sharp sell-off, while Standard Chartered, HSBC and Burberry felt some pressure on the weak Chinese economic outlook."
7.45am: House prices edge higher in October
Nationwide reports UK house prices rose to £272,226 in October, up 0.3% from September and 2.4% year-on-year. Not exactly fireworks, but the building society says the market is holding up surprisingly well.
Despite hefty mortgage rates and wobbly consumer confidence, buyers are still out there—mortgage approvals match pre-pandemic levels. Chief economist Robert Gardner suggests affordability could improve if wages keep outpacing house prices and borrowing costs ease.
In other news, Nationwide's research reveals that kitchen and bathroom renovations remain homeowners' go-to projects, while adding a loft conversion with a bedroom and bathroom could boost your property's value by up to 24%.
7.15am: FTSE likely to open lower
The FTSE 100 is expected to end October on the back foot after notching up a new record close on Thursday, with overnight losses on Wall Street likely to weigh on sentiment.
London's blue-chip benchmark has been called 22 points lower on the futures market after it made a late comeback to close 3 points higher at 9,760, assisted by gains for Standard Chartered PLC (LSE:STAN) and Haleon PLC (LSE:HLN, NYSE:HLN) and a weaker pound.
In the US, tech shares led the retreat as investors digested the implications of the US-China trade truce and navigated a mixed batch of earnings from the tech giants.
The Nasdaq fell 1.6%, the Dow Jones slipped 0.2%, and the S&P 500 fell 1%.
After the bell, Apple beat forecasts on strong iPhone sales and upbeat holiday guidance, while Amazon delivered its fastest AWS growth since 2022.
"Overall, Big Tech wrapped up the earnings season on solid footing despite mixed price reactions — largely a Fed-driven sentiment issue rather than a fundamental one," commented Deutsche Bank's Jim Reid. "Nasdaq futures are higher this morning, buoyed by Amazon’s 13% post-earnings jump — the biggest among the 'Magnificent Seven' this week."
Asian markets are mixed, with Tokyo's Nikkei rising sharply, while Hong Kong's Hang Seng and the Shanghai composite are both weaker. Mumbai's BSE Sensex and the ASX 200 in Sydney are also down.