FTSE 100 Ends Down Amid New York Tech Slump
Stock prices in London closed lower on Thursday, with the FTSE 100 index falling into negative territory after a downbeat start to trading in New York. The focus now shifts to a crucial US inflation reading scheduled for Friday.
The FTSE 100 index closed down 69.67 points, or 0.7%, at 10,402.44. It had spent much of the day in positive territory before declining as the afternoon progressed.
The FTSE 250 ended down 111.55 points, or 0.5%, at 23,304.99, while the AIM all-share index closed down 4.13 points, or 0.5%, at 811.16.
Global Market Movements
In New York, stocks were lower, with technology shares bearing the brunt of the declines. The Dow Jones Industrial Average was down 0.8%, the S&P 500 index lost 1.1%, and the Nasdaq Composite shed 1.6%.
The yield on the US 10-year Treasury narrowed to 4.12% from 4.17%, and the yield on the US 30-year Treasury narrowed to 4.76% from 4.81%.
New US unemployment insurance claims fell to 227,000 in the week ending February 7, a decline of 5,000 from the previous week's revised figure of 232,000, according to data from the US Department of Labour. This exceeded market consensus expectations of 222,000 initial jobless claims.
Inflation and Economic Outlook
Attention now turns to the upcoming inflation release, said Naga analyst Frank Walbaum. Headline and core prices are expected to rise 0.3% on the month. An upside surprise would likely push yields higher and strengthen the dollar by dampening Federal Reserve interest rate easing bets. Conversely, if figures come in line with expectations, the currency could remain confined to consolidation, particularly as investors remain attentive to leadership dynamics at the Fed and what they may imply for the policy outlook in 2026.
Meanwhile, in the UK, the economy eked out modest growth at the end of 2025. According to the Office for National Statistics, real GDP rose 0.1% in the fourth quarter from the third, matching the prior quarter's expansion but below the FXStreet-cited consensus of 0.2% growth.
For 2025 as a whole, the economy grew 1.3%, up from 1.1% in 2024. However, back in November on the day of the UK Government budget release, the Office for Budget Responsibility had expected UK GDP growth of 1.5% for 2025.
Currency and European Equities
The pound was quoted at 1.3628 dollars at the time of the London equities close on Thursday, lower compared with 1.3640 dollars on Wednesday. The euro stood at 1.1869 dollars, higher against 1.1861 dollars. Against the yen, the dollar was trading at 152.56 yen, down sharply from 154.23 yen.
In European equities on Thursday, the CAC 40 in Paris closed up 0.3%, while the DAX 40 in Frankfurt closed flat.
Notable Stock Performances
On the FTSE 100, Schroders was the best-performing stock, jumping 30% after the fund manager agreed to an all-cash takeover by a subsidiary of Nuveen. The deal values Schroders at up to £9.9 billion, or 612 pence per share.
Separately, Schroders reported 2025 results, with assets under management rising 6% to £823.7 billion and statutory pre-tax profit increasing 21% to £673.8 million.
Admiral rose 3.4%. The Cardiff-based insurer is buying commercial motor insurer Flock in a deal which values the latter's equity at £80 million. This acquisition aligns with the group's commitment to continuously evolve and futureproof its motor proposition and broaden its product offering, Admiral said. It plans to close the deal in the second quarter and expects the purchase to reduce its solvency ratio by less than 10 points, leaving its financial position well in excess of target levels.
On AIM, Sancus Lending surged 11% after increasing its existing credit facility with Pollen Street Capital to £300 million and extending its maturity to no earlier than February 11 2031. The property-backed lender said the extension reflects strong recent operational and financial performance and continued confidence from its funding partner.
TPXimpact jumped 16%, after announcing a £39 million, four-year contract with the UK's Department for Environment, Food and Rural Affairs under its Digital, Data & Technology capability as a service model. TPXimpact said it was awarded the deal following a competitive tender process, strengthening its existing role as an incumbent provider within the department.
Commodities and Energy
Brent oil was quoted at 68.08 dollars a barrel at the time of the London equities close on Thursday, down from 69.82 dollars late on Wednesday. Oil prices have experienced volatility today, as markets react to geopolitical uncertainty and inventory data, said Tickmill's Joseph Dahrieh. The unresolved tensions between the United States and Iran remain the primary focus. The absence of any firm decisions following diplomatic talks has kept the geopolitical risk premium alive, supporting prices.
He further noted that the market faces headwinds from the bearish data... US crude stockpiles surged by 8.5 million barrels last week, a figure that exceeded expectations of a much smaller increase and confirmed earlier API data hinting at a build-up.
Hurt by the fall in the oil price, Shell lost 0.9% and BP fell 1.0%. Moving in lockstep with gold, meanwhile, miner Fresnillo gave back 4.1%. Gold was quoted lower at 4,932.33 dollars an ounce against 5,055.15 dollars.
Biggest Risers and Fallers
The biggest risers on the FTSE 100 were:
- Schroders, up 135.00p at 592.00p
- DCC, up 190.00p at 5,190.00p
- Relx, up 74.65p at 2,087.65p
- Admiral, up 94.00p at 2,824.00p
- BT, up 6.20p at 210.20p
The biggest fallers on the FTSE 100 were:
- Prudential, down 86.31p at 1,075.19p
- Rentokil, down 24.95p at 447.35p
- Standard Chartered, down 84.50p at 1,730.00p
- Fresnillo, down 160.00p at 3,768.00p
- Endeavour, down 150.00p at 4,426.00p
Upcoming Events
On Friday's economic calendar, the US has its latest consumer price index reading. On Friday's UK corporate calendar, there are full-year results from NatWest.
