Key facts
- The FTSE 100 fell 2.2% to 10,540.78 points by 1143 GMT, on track for its worst session since mid-March.
- The midcap FTSE 250 slipped 1.2% as most London sectors declined.
- Precious metal miners rose 1.2%, the exception, while pharma and personal care, drug and groceries each slid around 3.5%.
- Energy stocks fell 2.5% as oil prices slipped on Friday.
- Man Group dropped 6.5% after Kuwait's public pension fund won a lawsuit against the asset manager on Thursday.
- TBC Bank rose 6.1% after its third-quarter net profit increased.
The FTSE 100 fell 2.2% to 10,540.78 points by 1143 GMT on Friday, on track for its worst session since mid-March and a weekly decline, Reuters reported. The midcap FTSE 250 slipped 1.2%.
The move followed the S&P 500 and Nasdaq marking their sharpest one-day falls since April 2025 on Thursday, after the Democrats' capture of the US House and Senate earlier in the week sparked concerns about AI regulation, a slowdown in data-centre construction and hyperscalers tightening their purse strings. The jitters spilled over to global markets, with Europe's STOXX 600 down 1%.
Most sectors in London slid, barring precious metal miners, which rose 1.2%. Traditionally defensive sectors such as pharma and personal care, drug and groceries also slid around 3.5% each after two sessions of gains. Oil prices slipped on Friday, weighing on energy stocks, down 2.5%.
Dan Coatsworth, head of markets at AJ Bell, said: "When $2.5 trillion of value is lost from one of the major US stock market indices in a day, it's understandable that investors are feeling on edge."
Separately, Lloyds said British house prices fell at the fastest annual pace in a year in October, as higher mortgage costs weighed on demand. Man Group bottomed the FTSE 250 with a 6.5% drop after Kuwait's public pension fund on Thursday won a lawsuit against the asset manager. Georgia's TBC Bank topped the midcap index with a 6.1% jump after its third-quarter net profit rose.