Highlights
- FTSE 100 called down around 1%
- Nasdaq plunges 5.5% into correction territory
- Nikkei sinks more than 6% as Asian tech stocks tumble
FTSE poised to retreat
London stocks are heading for a sharply weaker start on Friday as a brutal sell-off in artificial intelligence and semiconductor stocks on Wall Street spread across Asian markets.
FTSE faces heavy opening losses
IG was indicating the FTSE 100 around 10,675 shortly before 7.30am GMT, pointing to a decline of roughly 1% when trading begins.
The blue-chip index closed Thursday down 47 points, or 0.4%, at 10,783 after surrendering an early rally that had taken it as high as 10,948.
Thursday’s reversal followed the Bank of England’s decision to raise Bank Rate by 25 basis points to 4%, with policymakers warning that persistent energy costs could push UK inflation towards 5% next year.
The global equity sell-off is likely to dominate Friday’s opening, particularly technology-linked investment trusts and companies exposed to the AI infrastructure boom.
Wall Street suffers steepest fall since April 2025
US stocks suffered their biggest rout in more than a year as investors rapidly reduced exposure to AI and data-centre stocks.
The Nasdaq Composite plunged 5.5% to 24,315 and entered correction territory, while the S&P 500 dropped 4.4% to 7,354 and the Dow Jones fell 1,833 points, or 3.4%, to 51,523.
Nvidia dropped more than 9% and AMD plunged 17% as investors questioned stretched valuations and the outlook for spending on AI infrastructure following the US midterm elections.
Asian markets extend technology rout
The selling swept through Asia on Friday, with technology-heavy markets suffering the largest declines.
Japan’s Nikkei was down around 6.4% near 57,147, while South Korea’s KOSPI dropped more than 6% after an earlier fall was severe enough to trigger a circuit breaker.
Hong Kong’s Hang Seng fell around 1.4% to 24,452 and the Shanghai Composite slipped 1.2% to around 3,645.
Australia proved comparatively resilient, with the ASX 200 closing 0.5% lower at 9,021.
Oil rebounds as geopolitical risks return
Oil prices climbed sharply as concerns about disruption to Middle East supplies returned following renewed tanker incidents around the Strait of Hormuz.
Brent crude was trading around US$99 a barrel after rebounding almost 5% during the previous session.
Gold eased towards US$4,050 an ounce despite the equity sell-off, while sterling traded around US$1.343 and Bitcoin fell towards US$75,700 as investors reduced exposure to risk assets.
IAG leads UK corporate diary
International Consolidated Airlines Group will be closely watched after reporting third-quarter operating profit of €1.73 billion, down 16%, as higher fuel costs offset stronger revenue.
The British Airways owner reported an operating margin of 17.7%, compared with 22% a year earlier.
Wheaton Precious Metals also reported quarterly revenue of US$772 million, up 62%, alongside record year-to-date revenue, earnings and operating cash flow.
With global markets firmly in risk-off mode, the opening focus will be on how far London’s relatively low technology weighting can cushion the FTSE 100 from the sharp declines seen in the US and Asia.
Asian markets tumble
Asian markets were sharply lower on Friday as a brutal technology sell-off on Wall Street spread across the region, with Japan and South Korea bearing the brunt as investors reassessed the outlook for artificial intelligence spending and regulation.
Wall Street rout sets the tone
The sell-off followed Wall Street’s worst session in months, where the S&P 500 dropped 4.4% to 7,353.73, the Dow Jones lost 1,833 points, or 3.4%, to 51,523.06 and the Nasdaq Composite plunged 5.5% to 24,315.00.
AI-related stocks led the losses as concerns mounted over stretched valuations, borrowing costs and the possibility that tighter regulation could slow the construction of data centres, with Nvidia down 9.3% and Advanced Micro Devices falling 17.3%.
Japan and South Korea lead losses
Japan’s Nikkei 225 was down about 5.9% at 57,455 in late Tokyo trading after falling more than 7% earlier in the session, with technology and semiconductor-linked stocks under heavy pressure.
South Korea’s KOSPI was around 5,099, down about 5.3%, after an early plunge of more than 8% triggered a 20-minute circuit breaker.
Samsung Electronics and SK Hynix were among the biggest casualties as investors cut exposure to memory-chip and AI-linked stocks.
Taiwan’s technology-heavy market was also sharply weaker, down around 4% after falling as much as 9% during the session.
ASX gives back part of Thursday surge
Australia’s S&P/ASX 200 closed 0.5% lower at 9,020.80, giving back part of Thursday’s 2.6% rally as weakness in technology and mining stocks outweighed gains among consumer shares.
The comparatively modest decline left the Australian market outperforming most of its North Asian peers despite the sharp reversal on Wall Street.
Hong Kong and China retreat
Hong Kong’s Hang Seng Index was down around 0.5% at 24,683 in late-morning trading, with technology stocks among the main laggards after Thursday’s strong rally.
Mainland China also weakened, with the Shanghai Composite down around 1.1% near 3,648 as broader risk aversion spread through the region.
Oil rebounds, Australian dollar weakens
Oil prices moved higher after their recent volatility, with Brent crude around US$99.28 a barrel and West Texas Intermediate near US$91.21, while gold eased to around US$4,069 an ounce.
The Australian dollar weakened around 0.5% to US$0.6896, while the US dollar traded around ¥157.85 against the yen as investors continued to reduce risk exposure heading into the weekend.
