FTSE 100 Closes Higher After Turbulent Week
The FTSE 100 Index concluded a volatile and record-breaking week on a positive note on Friday, recovering some of the significant losses from the previous day. The index closed up 60.53 points, or 0.6%, at 10,369.74. Over the entire week, the FTSE 100 posted a solid gain of 1.4%, demonstrating resilience amid market fluctuations.
Mixed Performance Across Indices
In London, the FTSE 250 also saw gains, ending up 104.54 points, or 0.5%, at 23,207.89, while the AIM All-Share advanced 3.90 points, or 0.5%, to 806.80. However, for the week, the FTSE 250 declined by 0.2%, and the AIM All-Share fell by 1.5%, highlighting a divergent performance among UK market segments.
AI Disruption Fears Hit Data and Software Stocks
Despite the overall market gains, data providers and software stocks in London faced further losses during the turbulent week. This decline was driven by growing fears of AI-driven disruption, even as US technology stocks rallied after a slump on Thursday. Goldman Sachs attributed this trend to a sharp global rotation out of software and related sectors, sparked by announcements from US AI firm Anthropic and increased AI capacity.
On the FTSE 100, notable decliners included Relx, which fell 4.6%, Experian down 4.7%, Sage Group dipping 3.1%, and London Stock Exchange easing 1.1%. JPMorgan analyst Daniel Kerven attempted to reassure investors about Relx, stating it is a data and analytics company rather than a software business vulnerable to AI, emphasizing its role in providing trusted information for decision-making.
European and US Market Movements
In European equities, the CAC 40 in Paris closed up 0.4%, and the DAX 40 in Frankfurt advanced 0.9%. Stellantis, however, plummeted 25% after revealing preliminary second-half figures showing a deep net loss, driven by charges related to scaling back its electric vehicle push and other strategic shifts.
In New York, stocks rallied strongly, with the Dow Jones Industrial Average soaring 1.8%, and the S&P 500 and Nasdaq Composite both jumping 1.4%. Amazon was an exception, plunging 8.0% due to disappointing first-quarter guidance and plans for a significant increase in capital expenditure, with CEO Andy Jassy outlining a 200 billion dollar investment plan for 2026.
Currency and Commodity Updates
The pound was quoted higher at 1.3612 dollars at the London equities close, compared with 1.3536 dollars on Thursday. The euro stood at 1.1814 dollars, up from 1.1791 dollars. Against the yen, the dollar traded slightly higher at 157.04 yen. Gold prices rose to 4,946.87 dollars an ounce, and Brent oil increased to 68.47 dollars a barrel.
Key Stock Movements and Outlook
On the FTSE 100, the biggest risers included Burberry Group, International Consolidated Airlines, Fresnillo, Barclays, and Airtel Africa. The biggest fallers were Metlen Energy & Metals, Experian, Relx, Sage Group, and Compass Group. Metlen Energy & Metals sank 20% after revising down its full-year earnings expectations due to challenges in its projects business.
Looking ahead, next week's global economic calendar features delayed US nonfarm payrolls and inflation figures, along with a UK GDP reading. The UK corporate calendar includes full-year results from Plus500 and Porvair on Monday.
