- FTSE 100 falls 53 points to 9,682
- Rightmove sinks as much as 21%
- UK house prices hit a record
- Wall Street lower as shutdown drags on
4.53pm: FTSE fizzles
The FTSE 100 closed out another losing session this week, down 53 points at 9,682, as investor sentiment was weighed down by valuation and US government shutdown concerns.
What began as AI valuation jitters has turned into a broader selloff amid a lack of US economic data due to the shutdown, IG chief market analyst Chris Beauchamp said.
“Today should have been payrolls day, but for the second month in a row traders have been without this monthly update, leaving them increasingly in the dark,” Beauchamp said.
“The government shutdown shows no sign of ending either; since it is estimated to be costing the US economy $15 billion a week, this is turning from an irritation into a major concern.”
3.42pm: Rough week for Nvidia
Nvidia shares are down more than 10% this week, amid lingering concerns about the company’s China positioning and AI bubble chatter.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said that for those clinging to hopes of a rebound, this week feels like a moment of acceptance.
“Yet even without China, Nvidia’s growth story remains compelling – CEO Jensen Huang recently flagged $500 billion in orders already booked for 2025–26,” Britzman said. “That kind of demand and backlog speaks to the scale of AI infrastructure buildout, which shows no signs of slowing despite the background noise.”
3.11pm: Wall Street lower, Tesla fallout
Wall Street is off to another negative start to Friday, with the Nasdaq leading the declines.
The tech-heavy index fell about 1% in early trading to 22,828, while the S&P 500 slipped 0.5% to 6,684. The Dow Jones edged down 0.2% to 46,809, and the Russell 2000 was off 1.1% at 2,391.
Investors are weighing the fallout from Tesla’s annual general meeting yesterday, where shareholders approved Elon Musk’s $1 trillion pay package. Morningstar’s Lindsey Stewart noted that the 75% approval rate underscores Musk’s continued importance to the company, though some governance questions remain.
“Very few Tesla shareholders’ minds have been changed regarding how pivotal Musk is to Tesla’s future performance,” Stewart said, while noting upcoming filings may reveal more about board elections and shareholder rights.
Tesla shares fell around 3.2% on Friday morning.
2.12pm: US shutdown drags on
The longest shutdown in US government history has entered day 38, with the Senate set to vote on an updated funding bill amid concerns about staffing shortages among air traffic controllers and transport security officers.
Starting Friday, the Federal Aviation Administration has mandated a phased reduction in flights at 40 major US airports in response to the staffing challenges.
“The government shutdown drags on, with the risk now growing that air travel operations could be disrupted if the impasse extends further,” Scope Markets Joshua Mahony said.
On Thursday, US stocks were led lower by a pullback in mega-cap tech, with semiconductors particularly under pressure. “Reports that Michael Burry has built short positions in names like Nvidia and Palantir have added to discussions around stretched valuations and whether the tech rally may be nearing a cyclical peak,” Mahony said.
“Yet, futures point to a more positive tone today, and with earnings continuing to support the AI narrative and corporate profitability holding firm, many will question whether this week’s weakness represents a dip-buying opportunity rather than the start of a broader reversal.”
He concluded: “The bull trend may not be over yet, even if concerns of an eventual bubble remain in focus.”
12.50: Wall Street futures in the red
US stocks have been called lower on Friday after private-sector jobs data rattled investors in the absence of government data due to the ongoing shutdown.
Ahead of the open, Nasdaq futures are down 0.4%, with those for the S&P 500 and the Dow Jones indicating a 0.2% to 0.3% decline.
Meanwhile, the FTSE 100 has extended its losses, now down 76 points, or 0.8% at 9,659.53, while Frankfurt's DAX is 0.9% lower and the Paris CAC 40 is 0.5% weaker.
In Asia, Tokyo's Nikkei closed 1.2% down, Hong Kong's Hang Seng fell 0.9% and Shanghai's ended 0.3% in the red. Mumbai's BSE Sensex declined 0.1% and the ASX 200 in Sydney dropped 0.7%
12.31pm: Risk appetite running out
The FTSE is continuing to fall, down around 0.8%, similar to declines for the German DAX, while the Euro Stoxx 50 is down 0.7%.
US futures are down too, with the Nasdaq 0.55% lower, the S&P 500 down 0.4% and the Dow Jones dipping 0.3%.
"Risk appetite continued to weaken", says market analyst Fawad Razaqzada at Stonex, with European stocks and US futures resuming their slide after a brief bout of dip-buying faded – the sort of price action we have been accustomed to all week really."
He notes that some analysts say this year’s AI-led rally has finally come to a halt, while others suggest markets needed to cool down anyway from record highs, while he sees the prolonged US government shutdown as "finally weighing on risk appetite".
Further evidence of a cooling US labour market is unsettling investors and prompting a shift towards defensive positioning.
While private US jobs data has been mixed, money markets are now pricing in a higher likelihood of a Federal Reserve rate cut in December, Razaqzada says equities are "not sharing that optimism this time... The message is clear really – rate cut hopes alone aren’t enough when reality sets in. Frankly, the market needed this dose of realism. After months of AI-driven euphoria, traders are being reminded that fundamentals still matter."
US Treasury yields are down, he adds, while gold held steady amid the risk-off tone, continuing to tread water around the $4000 level, while Bitcoin tested waters just below $100K as it headed for its worst week since March.
"But will the dip buyers emerge and save the day? The Nasdaq 100 forecast could be hit if support at 25K doesn’t hold today."
11.56am: Pluses and minuses of ITV's possible deal
Confirmatio from ITV that it is in talks with Sky about the possible sale of its broadcast arm sent the shares surging and reignited speculation about a long-awaited break-up of the group.
Analysts said offloading the slower-growth Media & Entertainment division could create substantial value for shareholders, but warned of likely regulatory hurdles.
UBS analyst Adam Berlin, who has a 'sell' rating on the stock, said such a deal “could potentially create material value for ITV shareholders”.
"But there are reasons to be cautious," said Berlin, noting that no formal bid has been received and that “regulatory approval” would likely be needed, given Comcast’s ownership of Sky.
11.17am: Rightmove losses lessening as analysts see plus points
Rightmove's equity losses have been pared back to 12% from 27% at their worst earlier, as the property platform pledged to spend £60 million over three years on AI.
Several analysts applauded the company’s ambition despite warning of short-term profit pressure.
Jessica Pok at Peel Hunt said: "We believe today’s investment announcement positions the business to stay ahead of the curve by enhancing its proposition and unlocking future monetisation potential."
Jefferies’ Giles Thorne described it as a "complex" update for the shares.
"The tone of today's update is Rightmove seizing the moment to sculpt its role in the AI-era of property advertising in the UK. For the market, however, the focus will instead be on the incoming pressure on FY26 EBIT expectations and how / why the business can reverse the negative operating leverage from FY27 onwards.
"And in the back of everyone's mind will be whether the board's decision to reject the REA approach at close to 800p this time last year was the right one."
10:45am: Small caps in the news
Scancell Holdings PLC (AIM:SCLP, OTC:SCNLF)'s experimental melanoma therapy is showing some impressive early promise. Fresh trial data revealed 78% of patients on its iSCIB1+ treatment remained disease-free at 11 months – well ahead of the 46% rate for standard treatments. The DNA-based immunotherapy appears to pack a punch without nasty side effects, and Scancell's now eyeing bigger trials for 2026 whilst chatting with regulators and partners. Read more
Savannah Resources PLC (AIM:SAV, ETR:SAV, OTC:SAVNF) shares popped 5% to 3.68p after bagging an oversubscribed £9.2m fundraise to turbocharge its Barroso lithium project in Portugal. The cash – with more coming from a retail offer – will fund the acquisition of the project's juiciest deposit and push development forward. CEO Emanuel Proença reckons the strong demand shows "improving sentiment" toward lithium, with Savannah now sitting on roughly £20m total cash. Read more
CAP-XX (AIM:CPX) shares tumbled 17% to 0.27p despite actually posting decent progress – revenue up 7.6% and losses slashed by 40%. The drop likely reflects profit-taking after a 48% run this year, plus some nerves about its A$3.96m cash pile. The supercapacitor maker's seen bookings jump 25% since June and reckons it's closing in on cash flow break-even as efficiencies kick in. Read more
Tissue Regenix Group PLC (AIM:TRX) is working to secure fresh funding this month after its new leadership team uncovered cash flow challenges during a financial review. The medical devices firm – whose shares are currently suspended – is in active talks with major shareholders about raising £5m through convertible loan notes, and has received "clear indications of support" for the proposal. The company needs the capital injection by the month-end to continue operations. Read more
9.40am: Mixed morning for Europe's markets
London's FTSE 100 has extended its slide, dragged lower by hefty drops in Rightmove and IAG. The blue-chip index is now down 44 points at 9,692.18 – off nearly 0.5%.
Across the Channel, it's a mixed picture. Frankfurt's DAX has slipped 4 points, while Paris's CAC 40 is clinging to a 0.1% gain. The Euro STOXX 50 is barely in the red, down less than 0.1%.
9am: More morning movers
ITV PLC (LSE:ITV) rocketed 18% to 80p after confirming it's in "preliminary talks" with Sky about flogging its broadcast TV business – including streaming service ITVX – for £1.6 billion. There's no guarantee a deal will happen, but the whispers are getting louder. ITV's been the subject of takeover speculation for ages, with everyone from CVC to French broadcasters circling. The timing's interesting: Liberty Global just dumped half its stake, and ITV's tightening its belt with £35m of cost cuts amid softer ad demand. Read more
International Consolidated Airlines Group SA (LSE:IAG) dipped 8.6% despite delivering a decent quarter, with operating profit up 2% to €2.05bn – bang in line with forecasts. Revenue came in slightly softer than expected at €9.33bn, and passenger revenue per seat fell 2.4%. Still, CEO Luis Gallego insists the British Airways owner is "on track" for another year of growth, has nearly wrapped up its €1bn buyback, and promises news on "further shareholder returns" in February. Travel demand's holding up nicely, apparently. Read more
Xeros Technology Group PLC (AIM:XSG) tumbled 21% to 1.78p after unveiling plans to raise up to £6m through a heavily discounted share placing at 1.75p – a chunky 22% below Thursday's close. The Sheffield-based green tech firm, which develops eco-friendly clothing technologies, is pulling in £3m initially, with another £3m to follow from retail and other investors. CEO Neil Austin says the cash will fund at least 12 months of operations and help "accelerate global adoption" of its laundry and filtration tech. Read more
Trellus Health PLC (AIM:TRLS) shares slid 9% to 0.5p – capping a brutal 73% six-month slide – as a shiny new clinical trials contract couldn't mask the elephant in the room: cash is running out. The digital health firm landed a 12-month deal with a major research organisation for its TrialSet platform, but CEO Dr Marla Dubinsky admitted it won't extend the runway beyond early December. The company's scrambling for an equity raise to keep the lights on. Read more
Coats Group PLC (LSE:COA) edged up 1.4% to 80.3p after the thread and footwear materials maker said it's still on track for the year, despite customer orders staying cautious. Revenue dipped 1% at constant currency, but margins held steady thanks to tight cost controls. Cash generation's looking strong, and the recent OrthoLite acquisition is performing well. Broker Peel Hunt reckons the shares are a bargain at just 10x earnings, slapping on a 125p price target and a 'buy' rating. Read more
8.35am: Right move for Rightmove?
More on that 21% plunge in Rightmove's share price at the open.
In its update, it also announced it's ramping up AI and tech investment, which will crimp near-term profit growth. The property portal's splashing an extra £12m next year, guiding for just 3-5% profit growth in 2026 as it builds what CEO Johan Svanstrom calls "an even stronger platform."
Margins should recover from 2027 onwards, but analysts reckon it's a 7-10% cut to consensus earnings expectations.
8.15am: Footsie loses its footing
The FTSE 100 fell 12 points at the open and extended its losses in the first 15 minutes of trade to 9,715.55, a loss of 20 points.
Rightmove PLC (LSE:RMV) is top of the loser board this morning, down 21%, despite reaffirming its 2025 guidance in a trading and investor update this morning. More on that shortly.
British Airways owner International Consolidated Airlines Group SA (LSE:IAG) is down 6.7% after reporting quarterly revenues and profits marginally lower than expected but keeping its outlook for the full year unchanged. Auto Trader Group PLC (LSE:AUTO) has shed 1.5%.
Among the gainers, Hikma Pharmaceuticals PLC (LSE:HIK, OTC:HKMPF) rose 1.2%, recovering some of yesterday's losses after the generic drug manufacturer lowered medium-term guidance for its injectables division.
Barclays PLC (LSE:BARC) is up 0.9%, with NatWest Group PLC (LSE:NWG) close behind with a 0.8% gain.
8am: Jobs, what jobs?
More on those US jobs numbers now.
Deutsche Bank's Jim Reid notes that, under normal circumstances, markets would be laser-focused on today's US payrolls report. But with the ongoing government shutdown keeping the official data off the calendar, traders have been overreacting to second-tier employment figures that would usually just whet the appetite for the main event.
Wednesday brought a sharp bond sell-off after solid ADP employment and ISM services data beat expectations. But that move completely unwound yesterday following weak jobs data, with the 10-year Treasury yield plunging -7.6bps – its steepest daily drop since the US-China trade escalation on 10 October.
The bond market rout spilled over into equities, hammering the Dow, S&P 500 and Nasdaq.
"Investors were rattled by the Challenger, Gray & Christmas report showing October job cuts surging +175.3% year-on-year to 153,074 – the highest October figure since 2003," Reid explained. Revelio Labs' payroll estimate fell -9.1k, driven largely by -22.2k government job losses – a stark contrast to Wednesday's upbeat numbers.
7.35am: UK house prices hit record despite market jitters
Good news if you own a home, not so much if you're trying to buy one. UK house prices jumped +0.6% in October – the biggest monthly rise since January – pushing the average home to a record £299,862, according to Halifax.
Annual growth perked up to +1.9%, and mortgage approvals hit their highest level this year, suggesting buyers aren't being put off by uncertainty.
Northern Ireland's leading the charge with +8.0% annual growth, whilst London's treading water with a tiny -0.3% dip. The capital's average property will still set you back a cool £542,273 though!
7.15am: FTSE likely to open lower
The FTSE 100 is tipped to edge lower at the open as risk-off sentiment builds due to economic uncertainty on both sides of the Atlantic.
Spreadbetters have London's blue-chip declining by 7 points, building on yesterday's 41-point loss after the Bank of England held interest rates steady despite sluggish growth in the economy.
In the US, a Challenger report showed companies announcing the biggest job cuts in October since 2003. With the government shutdown now the longest on record, the market is relying on private-sector data for a view of the health of the economy.
"The lack of US data and the ongoing government shutdown is making investors nervous," commented IG's chief market analyst, Chris Beauchamp. "Financial markets find themselves groping around in the dark."
The Dow Jones fell 0.8%, the S&P 500 dropped 1.1% and the tech-heavy Nasdaq saw a sharper decline of 1.9%.
"The news isn’t great, fundamentally speaking — human jobs are being replaced by machines, just as they were back in 2003 when the internet wave hit," said Swissquote senior analyst Ipek Ozkardeskaya. "But the strong job-cuts figure revived hopes of a December Fed rate cut. The probability of a December rate cut recovered to 67%."
In Asia this morning, Tokyo's Nikkei is down 1.2%, Hong Kong's Hang Seng has shed 1% and Shanghai's SSE Composite Is 0.2% lower. In Mumbai, the BSE Sensex is 0.2% weaker and Sydney's ASX 200 has lost 0.7%.