Key facts
- FTSE 100 fell 0.5% to 10,699.33 points.
- FTSE 250 slipped 0.9%.
- Brent crude futures rose over 3% to more than $112 a barrel.
- Barclays missed third-quarter profit estimates and plans to cut 5,000 jobs.
- Rentokil Initial reported higher third-quarter organic revenue growth and a $200 million buyback plan.
- London Stock Exchange Group raised its 2026 revenue outlook and agreed to acquire Octus for $3.54 billion.
London's FTSE 100 index fell to a one-week low on October 22, weighed down by significant declines in major banks and dampening risk appetite due to rising oil prices. The blue-chip FTSE 100 index was down 0.5% to 10,699.33 points by 10:06 GMT, while the mid-cap FTSE 250 index slipped 0.9%, marking its largest one-day decline since October 1.
Energy stocks were the biggest gainers as Brent crude futures jumped more than 3% to over $112 a barrel. Conversely, banks were the primary drags, trading near June lows. Barclays experienced a marginal dip after missing third-quarter profit expectations and announcing plans to cut approximately 5,000 jobs. Precious metal and industrial metal miners also saw significant percentage declines as gold and copper prices fell.
Elevated oil prices have fueled inflation concerns, prompting major central banks to consider interest rate hikes. British inflation rose more than expected last month, reinforcing expectations of a Bank of England rate increase in November. Investors are closely monitoring corporate earnings for insights into the impact of geopolitical uncertainty and higher borrowing costs.
In corporate news, Rentokil Initial led the FTSE 100 with an 8.2% increase following higher third-quarter organic revenue growth and a $200 million buyback plan. Sainsbury's shares dropped 3.7% due to a slowdown in second-quarter sales growth. IHG, owner of Crowne Plaza, slipped 3.1% as rising interest rates and the Iran conflict overshadowed its quarterly room revenue beat. London Stock Exchange Group gained 4.3% after increasing its 2026 revenue outlook and agreeing to acquire financial data firm Octus for about $3.54 billion.