FTSE 100 declined 0.2% to 9675.43, marking a third consecutive session of losses as investors remain cautious ahead of the November 26 UK Budget. The drop comes after a sharp selloff on Friday. This was triggered by Chancellor Rachel Reeves’s U-turn on income-tax plans and has left sentiment unstable across sectors.
IG futures indicate a steeper 1.3% drop at Tuesday’s opening, reflecting the markets’ overnight weakness in the US and Asia, where the Nikkei fell over 3%.
Broader risk appetite remains fragile. A three-day Wall Street losing run, the worst since April, has pushed the S&P 500 below its 50-day moving average for the first time in 139 sessions. Analysts said one cannot rule out a deeper correction, with NVIDIA’s earnings and a delayed US jobs report adding to uncertainty.
Major heavyweight stocks in the FTSE fell into negative territory. HSBC, Rolls-Royce, and RELX were each down about 1%, while Barclays shed 0.65% and Lloyds fell 0.72%. The defense major BAE Systems was seen easing 0.1%, indicating that caution persisted in rate-sensitive and globally-exposed counters.
The index components that also fell include Diageo, Standard Chartered, Glencore, Experian, and London Stock Exchange Group. Participants attribute the weakness to a mix of global tech woes, falling commodities, and domestic anxieties around the fiscal roadmap.
A few stocks provided relief to traders. WPP jumped 11% to become the day’s biggest winner. Reports emerged that Dutch communications group Havas had expressed high-level interest in a possible deal. The stock is down more than 60% this year, battered by client pullbacks and AI-driven disruptions, making Monday’s spurt a rare bright spot.
British American Tobacco added 2.14%, AstraZeneca increased 0.44%, BP improved 0.61% and GlaxoSmithKline gained 0.87%, providing some defensive support to the index.
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Global risk-off mood deepened as Bitcoin slid below $90,000, wiping out its 2025 gain and roiling crypto-linked investor sentiment. In the UK, inflation concerns, a weak housing market, and feared tax hikes pre-Budget have led to wealthy families restructuring their holdings.
This is being done in anticipation of tighter rules. Investors prepare for more turbulence into year-end, with key economic releases due this week, including a crucial UK inflation print.