FTSE 100 today: Stocks slump as global tech rout deepens

The FTSE 100 fell 1.5% as an AI-investment-driven global tech selloff spread to Europe; the S&P 500 lost 4.4%, the Nasdaq 5.5%, and Japan’s Nikkei and South Korea’s KOSPI each fell 6%. Risk sentiment was also pressured by escalating Iran-related tensions, while the Bank of England raised its rate to 4% and UK house prices declined 0.6% in October. UK company updates were mixed to weak, including IAG’s third-quarter operating profit missing consensus and outlook cautions from MJ Gleeson and Rightmove.

Analysis

The key transmission is not simply risk-off: tighter UK mortgage finance is colliding with a demand pause in housing, while a delayed support scheme may shift purchases between reporting periods rather than create durable demand. That leaves MJ Gleeson (GLE) exposed to sales cancellations and an uncertain second-half recovery; Rightmove (RMV) is more insulated operationally, but fewer transactions and weaker new-build advertising can still constrain monetization. RMV’s narrowed 2026 growth outlook is a warning against treating its marketplace model as a near-term housing hedge.

For International Consolidated Airlines Group (IAG), weaker capacity and Middle East disruption can constrain revenue, while lower crude offers a partial cost offset. The offset is imperfect: route lengthening, insurance and schedule disruption can absorb fuel savings, and strong forward bookings do not erase the reported operating-profit miss.

Over days, broad de-risking and retail selling can overwhelm company fundamentals; payroll data and any reversal in rates expectations are near-term volatility catalysts. Over 1–3 months, mortgage approvals, UK rate pricing and company trading updates matter more than a one-day index move. Over 6–18 months, the test is whether housing demand recovers after the scheme launch and whether IAG restores capacity without sacrificing yields.

Contrarian angle: a falling oil price alongside escalating Gulf risk is not reliable evidence that supply risk has disappeared; it may reflect demand concerns or positioning. Conversely, the housing news does not establish a structural collapse. Valuation, current prices and positioning are unavailable, so avoid claiming either equity is cheap or stretched.

Key Decisions for Investors

• Avoid chasing the initial selloff in GLE or IAG; broad flow pressure may persist for days, and the article provides no price levels or valuation data to define an attractive outright entry.
• Watch a conditional relative-value setup: favor RMV over GLE only after price action stabilizes and mortgage approvals/new-build activity stop deteriorating. Falsify it if RMV cuts revenue guidance further or GLE demonstrates a durable sales recovery without elevated cancellations.
• Keep IAG exposure cautious rather than treating lower crude as a standalone buy signal. Reassess on route disruption, fuel costs and operating-profit guidance; a sustained easing in Gulf disruption alongside capacity restoration would weaken the downside case.
• Track UK rate expectations, mortgage approvals, payroll data and Brent as near-term catalysts. A renewed energy spike could lift inflation and rates, worsening the housing channel while simultaneously eroding IAG’s fuel-cost relief.