Lunchtime market roundup: Stocks lower amid global tech sell-off

Stock prices in Europe were mostly lower at Friday midday as a global sell-off in technology stocks continued amid concerns that the Democrats' electoral victory in the US could lead to tighter regulation on artificial intelligence investment, while investors await US nonfarm payrolls data to be out shortly.

The FTSE 100 index was down 242.58 points, 2.3%, at 10,542.10. The FTSE 250 was down 306.93 points, 1.2%, at 24,395.77, and the AIM All-Share was down 5.56 points, 0.7%, at 751.53.

The Cboe UK 100 was down 2.2% at 1,046.16, the Cboe UK 250 was down 1.3% at 21,559.51, and the Cboe Small Companies was down 0.6% at 18,571.59.

In European equities on Friday, the CAC 40 in Paris was down 1.8%, while the DAX 40 in Frankfurt fell 2.3%.

The initial relief rally following the US midterm elections quickly gave way to a sharp global sell-off as investors assessed the potential implications of the Democrats gaining control of both chambers of Congress, particularly for the technology sector.

Technology shares came under heavy pressure amid concerns that the election results could accelerate political opposition to artificial intelligence investment and the rapid expansion of data centres.

The sell-off followed a steep decline on Wall Street on Thursday, when the technology-heavy Nasdaq Composite plunged 5.5%, its worst performance since April 2025, when US President Donald Trump announced sweeping global tariffs.

The losses spread across Asian markets, with stocks in Tokyo and Seoul ending the week down around 6.0%.

Opposition to data centre developments has grown among US voters across the political spectrum, with several successful midterm candidates pledging to restrict or slow new projects.

The election results added to existing concerns about the hundreds of billions of dollars invested in artificial intelligence infrastructure, particularly uncertainty over when companies would generate sufficient returns to justify the spending.

A recent increase in borrowing costs has also raised questions about the financial sustainability of large-scale AI investment, adding to pressure on technology stocks and broader equity markets.

Meanwhile, eurozone retail sales declined by more than expected in September, although the previous month's figures were revised higher, according to data from Eurostat.

Seasonally adjusted retail trade volume fell 0.7% month-on-month in September, reversing a 0.4% increase in August and significantly worse than the FXStreet-cited consensus forecast for a 0.1% decline.

August's increase was revised upwards from an initially reported 0.1% rise.

The decline was driven primarily by weaker sales of non-food products excluding automotive fuel, which fell 1.2% in September following a 0.6% increase in August.

By contrast, sales of automotive fuel in specialised stores rose 1.0%, reversing a 0.8% decline in August.

The pound was quoted at USD1.3399 at midday Friday, lower than USD1.3473 at the London equities close on Thursday. Against the euro, sterling fell to EUR1.1989 from EUR1.2001 a day earlier.

The euro declined to USD1.1178 from USD1.1228 late Thursday. Against the yen, the dollar rose to JPY158.05 from JPY157.84.

In the FTSE 100, International Consolidated Airlines Group was among the few gainers, rising 1.0% after highlighting resilient demand despite reporting a third-quarter profit shortfall.

The British Airways, Iberia and Aer Lingus owner said operating profit fell 16% to EUR1.73 billion in the three months ended September 30 from EUR2.05 billion a year earlier, below the company-compiled consensus of EUR1.81 billion.

IAG attributed the decline to lower capacity, one-off disruption events and higher jet fuel prices, which offset strong pricing.

Nevertheless, the airline group maintained its full-year outlook, saying it remained on track to meet market expectations.

Scottish Mortgage Investment Trust edged up 0.9% after reporting that it had outperformed its benchmark index and reduced its exposure to SpaceX.

At the other end of the blue-chip index, telecommunications stocks were among the biggest losers, with BT Group and Airtel Africa both down 4.6%.

In the FTSE 250, TBC Bank Group climbed 6.7% after reporting higher quarterly earnings.

Man Group dropped 6.7% after Deutsche Bank Research lowered its price target for the investment manager to 355 pence from 365p, while maintaining its 'hold' rating.

Hikma Pharmaceuticals declined 4.1% after Deutsche Bank Research cut its price target to 2,000p.

Among smaller companies, Naked Wines jumped 14% after announcing a tender offer.

At the other end of the market, Feedback plunged 19% after warning that its cash runway remained tight and that a wide range of outcomes remained possible.

Lords Group Trading fell 17% after cautioning that a recovery in demand was likely to take longer than previously anticipated.

Billington Holdings dropped 16% after warning that its 2026 underlying pretax profit would fall significantly below market expectations.

The structural steel and construction safety solutions group expects underlying pretax profit of between £4.0 million and £5.5 million, compared with market expectations of £8.3 million.

The company cited higher-than-expected costs on a project in northern England, weaker performance on an industrial project and client-led delays to a significant bridge contract.

Stocks in New York were called mixed, with the Dow Jones Industrial Average set to open down 0.9%, while the S&P 500 was called up 0.3% and the technology-heavy Nasdaq Composite up 1.3%.

The yield on the US 10-year Treasury was quoted at 4.83% at midday Friday, narrowing from 4.84% on Thursday. The yield on the US 30-year Treasury was unchanged at 5.25%.

Brent oil was trading at USD98.66 a barrel at midday Friday, higher than USD97.34 late Thursday.

Gold was quoted at USD4,069.53 an ounce at midday Friday, lower than USD4,116.08 on Thursday.

Still to come on Friday's economic calendar, the US releases its October nonfarm payrolls report and unemployment rate, followed by the University of Michigan consumer sentiment index.

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