LONDON: London’s FTSE 100 fell on Friday, as a sell-off on Wall Street fuelled by AI angst spoiled the mood across European markets.
The blue-chip FTSE 100 dipped 0.6 percent, retreating from gains of as much as 0.6 percent. The mid-cap FTSE 250 index edged up 0.1 percent, also pulling back from early highs.
Both indexes recorded a second consecutive week of declines.
US stocks tumbled as chipmaker Broadcom’s latest results added to concerns about a potential AI bubble, dampening optimism stoked by the Federal Reserve’s less hawkish signals on the path of interest rates in 2026.
British stocks were earlier buoyed by a surge in precious metal miners on the back of a rally in gold and silver prices.
The FTSE 350 index of precious metal miners jumped 5 percent to a record high before cutting gains. It closed up just 0.8 percent.
Attention now turns to the Bank of England monetary policy meeting next week, with markets pricing in a 90 percent chance of a 25 basis points rate cut following signs of a cooling labour market and inflation.
Data on Friday showed Britain’s economy shrank unexpectedly in the three months to October, losing momentum in the fraught run-up to finance minister Rachel Reeves’ budget, further supporting expectations for a rate cut.
Among stocks, InterContinental Hotels Group rose 2 percent after Jefferies upgraded the Holiday Inn owner to “buy” from “hold”.
WH Smith fell 2.1 percent after the travel retailer delayed the publication of its preliminary annual results for the second time.