Lunchtime market roundup: FTSE 100 solidly higher despite tech plunge

London's FTSE 100 was on the up on Thursday, shaking off a slump in tech stocks which were hurt by discomfort over the debt needed to fund the artificial intelligence build-out.

The FTSE 100 index climbed 54.99 points, 0.5%, at 10,779.85. The FTSE 250 in London was down 51.01 points, 0.2%, at 24,309.76, and the AIM All-Share shed 3.04 points, 0.4%, at 764.87.

The Cboe UK 100 was up 0.4% at 1,069.99, the Cboe UK 250 rose 0.1% at 21,326.61, and the Cboe Small Companies was flat at 18,757.49.

In Paris, the CAC 40 was up 0.1%, while the DAX 40 in Frankfurt fell 0.5%. Semiconductor firm Infineon lost 8.0%, while Siemens Energy, which provides power solutions to data centres, shed 5.7%. The duo are among the largest names on Germany's large-cap benchmark.

The Dow Jones Industrial Average is called up 0.3% in New York, but the S&P 500 and Nasdaq Composite are set to decline 0.3% and 1.2%.

"The tech sell-off has continued with pace, exacerbated by US inflation data which increased expectations for US interest rate hikes this month," AJ Bell analyst Dan Coatsworth commented.

"Tech investors are getting uncomfortable with the amount of debt being used to fund the AI build-out. There is a growing fear that big names in the tech space are running too fast, and they're primed to trip up. Reports about Anthropic's third quarter revenue suggest it isn't growing as fast as expected, which added to fears that the AI euphoria might be hard to sustain."

While the equity market in London has fewer tech names than New York, there were pockets of firms hit by the decline in AI exuberance.

Polar Capital Technology Trust fell 5.5%, while Scottish Mortgage Investment Trust declined 3.0%. Both have a who's who of tech names in their portfolios.

Data centres consume hefty amounts of copper, so miners were hurt. Rio Tinto fell 4.0%.

Antofagasta suffered a steeper decline as a trading statement underwhelmed. The copper miner fell 7.0%.

Antofagasta said copper production in the third quarter of 2026 rose 7.0% to 151,900 tonnes, from 142,000 in the second quarter, 2.0% light of company compiled consensus of 155,000.

Sterling traded at USD1.3255 midday Thursday, up from USD1.3152 at the time of the London equities close on Wednesday. Against the euro, it fell to EUR1.1816 from EUR1.1826.

The euro bought USD1.1212, up from USD1.1121. Against the yen, the dollar faded to JPY157.79 from JPY158.86.

The UK economy again proved more resilient than expected in August, posting surprise growth as a rebound in manufacturing offset weakness across services and construction, according to data on Thursday, leading to optimism over prospects for the whole third-quarter.

August's minor growth, which defied forecasts of a decline, followed a more convincing stride made in July and means UK GDP is on track to top a Bank of England forecast for the quarter ended September 30. But it could give policymakers more confidence to enact a rate hike.

Gross domestic product rose 0.1% month-on-month in August, the Office for National Statistics said, beating expectations for a 0.1% decline. Growth slowed from 0.4% in July, while June's expansion was revised up to 0.4% from 0.3%.

Lloyds believes the August data could strengthen the case for a hike, though it still thinks it is mainly inflation that the BoE's Monetary Policy Committee is focused on.

"However, a Q3 GDP outturn potentially around 0.7% q/q, following solid growth in the first half of the year, would strengthen the case that the economy is better placed to absorb higher interest rates than policymakers had previously anticipated. That matters given the sizeable repricing in expectations for bank rate following the renewed inflation shock from higher energy prices. Stronger activity does not by itself necessitate tighter policy, particularly while the labour market remains softer, but it potentially reduces one of the constraints facing the MPC. In that sense, the latest GDP figures are likely to underpin rather than drive expectations for a further increase in bank rate," Lloyds said.

The yield on the US 10-year Treasury was quoted at 5.09% early Thursday afternoon UK time, narrowing markedly from 5.26% at the time of the London equities close on Wednesday. The yield on the US 30-year Treasury was at 5.43%, slimming from 5.57%.

Yields surged in the wake of data on Wednesday showing US consumer price inflation accelerated at a faster pace than expected last month. But the bond market calmed as the day progressed.

AJ Bell's Coatsworth suggested that nerves elsewhere in the market may have supported Treasury prices. Bond prices move inversely to yields.

"Market movements pointed to a sharp reduction in risk appetite. It was telling that US Treasury bond yields fell, suggesting that investors are moving into supposed lower-risk assets," Coatsworth commented.

The public should be prepared for a tough UK budget in two weeks' time which may not provide government departments with extra cash to cover pay rises for doctors and nurses, John Healey has indicated.

The UK chancellor said the British people recognised the difficult nature of public finances due to ongoing global turmoil, and expected government departments to "manage with the budgets we've got", as he attended the International Monetary Fund meeting in Bangkok, Thailand.

Speaking to the BBC from the IMF meeting, Healey was asked if the coming fiscal statement to the Commons would be a tough, or even an austere budget.

He replied: "Well, it's a tough time. People can people can see the global economic conflicts, they know the pressure it's putting on them, they understand it's putting pressure on the government."

A barrel of Brent fell to USD104.35 from USD105.67 at the time of the London equities close on Wednesday. Gold rose to USD4,153.23 from USD4,089.77, aided by narrowing yields.

In London, British Land shares rose 2.6%. It confirmed its annual guidance, as its new chief executive said the property investor has a "strong platform" for earnings growth and shareholder income.

British Land is a commercial property developer and landlord, focused on office campuses in London and retail parks.

British Land said it expects to report half-year profit growth. For the six months to September 30, it expects to post underlying profit of £166 million, a 7.1% rise from £155 million a year prior. Underlying earnings per share of 16.1 pence are expected, an increase of 4.5% from 15.4p.

British Land reiterated its view of a full-year financial 2027 underlying EPS of at least 30.5p, up 6%. It expects 3% to 6% EPS growth over the medium-term and estimated rental value growth of 3% to 5% per annum.

THG jumped 16%. The e-commerce firm, which owns the Myprotein brand, lifted its adjusted earnings before interest, tax, depreciation and amortisation guidance to £103 million, ahead of market consensus.

THG said third quarter revenue rose 0.9% on-year to £408.8 million and it expects growth to accelerate in the final quarter.

"Q4 is traditionally our busiest and most cash-generative quarter, and we enter this important trading period with confidence. With strong operational momentum, improving profitability and continued strategic progress across both divisions, we expect to deliver an acceleration in group revenue in Q4," Chief Executive Officer Matthew Moulding commented.

On AIM, Gana Media soared 20%. The owner of the Estadio Gana online sportsbook and casino in Mexico said third quarter gross gaming revenue surged to around USD2.0 million from USD140,000 in the second quarter.

It said Estadio Gana registrations hit 87,523, enough to "fill every seat" at Mexico's iconic Azteca football stadium, which hosted matches at the recent World Cup.

Registrations surged from 21,296 in the second quarter.

Gana Media said: "The shape of the quarter matters as much as its size. In Q2, Estadio Gana was acquiring players faster than it was converting them: one registration in twenty-five went on to deposit. By September, that had become one in four. The step-change reflects the group's investment in payments, onboarding and CRM throughout the summer, and it means the player base acquired around the World Cup is now monetising at a materially higher rate than the board had planned for at this stage."

Still to come on Thursday is the latest US initial jobless claims reading at 1330 BST.

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