FX.co ★ FTSE 100 Trades at 1-Month Low

The FTSE 100 index declined by 0.6% to reach a one-month low and is on track for a 2.5% weekly decrease, marking its most significant drop since April. This downtrend comes as concerns about a potential AI-driven market bubble impact UK and European stocks. Within this market context, cyclical and risk-sensitive sectors saw notable declines: Rolls-Royce and Babcock each fell by approximately 3–3.5%, BAE Systems decreased by 1.6%, while BP and Shell dipped by 1.4% and 1.1%, respectively. Additionally, key mining companies reported losses ranging from 1.2% to 4%. The banking sector was similarly affected, with stocks like Standard Chartered, Barclays, Lloyds, and HSBC falling between 1.1% and 2.3%. UK banks have been among the major contributors to the market's downward trend this week, and energy stocks have been pressured by weaker Brent crude prices. Babcock reported first-half revenue aligning with forecasts and maintained its outlook, with targets for an 8% margin by 2026 and exceeding 9% in the long term, supported by robust demand in the defense and nuclear sectors. Despite the overall downturn, the FTSE fared slightly better compared to continental markets, buoyed by strong performance in defensive stocks. Companies like Unilever and RELX increased by about 1%, while Diageo rose by 1.5%, as investors gravitated towards reliable earnings.