FTSE 100 Live: Index Falls 0.8% as Banking and Mining Stocks Decline Amid Economic Uncertainty and Oil Surge

UK stock market opened lower as economic concerns and rising oil prices had a negative impact on investor sentiment. FTSE 100 index declined 79.21 points to 10,225.94. It reflects larger concerns about slowing economic growth.

FTSE 250 index which represents mid-cap companies with stronger domestic exposure also dropped 0.8% or 177.76 points to 21,990.98. This signals weakness across the wider UK equity market.

Banking and Mining Stocks Lead the Decline

Financial and commodity-linked stocks declined and dragged the index. Banking shares came under pressure as investors reacted to signs of a slowing economy.

Barclays fell by £6.3 to £382 while Lloyds Banking Group slipped £1.1 to £94.3 and extended recent losses in the sector.

Mining companies also faced selling pressure amid volatility in commodity markets. Fresnillo dropped 3.42% to £3,506 and Rio Tinto declined 1.33% to £6,754. Anglo American also traded lower.

Spirax Group also declined 1.74% to £7,050 and Intertek Group backed 2.58% to £3,784.

Energy giant BP gained 1.46% to £536.90 on the upside while Shell advanced 0.93% to £3,359.

Among others Admiral Group jumped 0.56% to £3,236. Centrica gained 0.39% to £207.60 and GSK rose 0.10% to £2,033.

UK Economy Shows Weakness

Economic data released by the Office for National Statistics (ONS) showed that UK economy recorded 0% in January. It surely disappoints economists who had expected a 0.2% expansion.

The services sector which is more than 80% of UK GDP showed no growth during the month. Meanwhile industrial production declined by 0.1% while construction activity grew slightly by 0.2%.

Over the three months leading to January the UK economy expanded by 0.2% suggesting only modest momentum entering 2026.

Economists say the data highlights structural weaknesses in the UK economy and raises concerns about future growth.

Oil Prices Surge Above $100

Brent crude oil has climbed above $100 per barrel. The surge follows escalating geopolitical tensions in the Middle East and disruptions to shipping in the Strait of Hormuz. This is one of the world’s most critical oil transportation routes.

The region handles roughly 20% of global oil supply and made any disruption highly significant for global markets.

Higher energy costs could reduce household spending power and increase inflationary pressures complicating policy decisions for the Bank of England.

Also Read: Stock Market Today: Sensex Down 963 Points, Nifty Hits 23,305; Rupee at Record Low as Oil Tops $100

Global Markets React to Energy Shock

The rise in oil prices has affected global equity markets. In the United States Dow Jones Industrial Average fell 1.6%, while S&P 500 declined 1.5% and Nasdaq Composite dropped 1.8%.

Asian markets also showed weakness with Japan’s Nikkei 225 falling more than 1%.