The FTSE 100 touched fresh intraday record highs on Thursday before easing back as London’s defensive attributes attracted investors amid a US tech sell-off.
London’s leading index was trading down 0.3% at the time of writing after hitting an intraday record of 9,301 earlier in the session.
The FTSE 100’s more defensive-oriented stocks were among the leaders that helped keep losses contained on Thursday, with BAE Systems, Fresnillo and Whitbread having a solid session.
Much of the downside for the FTSE 100 on Thursday was a result of stocks trading ex-dividend. Legal & General and Imperial Brands were among those losing the right to upcoming dividends.
For years, the absence of major technology firms has meant the FTSE 100 lagged global peers such as the S&P 500, but 2025 has seen a significant outperformance of the FTSE 100 due to its weighting to sectors such as defence, pharma, and utilities.
This was again the case this week, with the FTSE 100 touching fresh highs as US stocks faltered after the release of Federal Reserve minutes.
“It’s not too often that the FTSE 100’s lack of technology exposure is a virtue but it has been this week,” says AJ Bell investment analyst Dan Coatsworth.
“Amid selling in Europe and the US, the UK’s flagship index tested new highs above 9,300. Old world economy stocks like banks, energy companies and insurers have been to the fore – with their generous dividends in demand with investors.
“In the US overnight, tech names trimmed heavier losses seen earlier in the trading session.”
Although names such as Babcock, BAE and Weir helped provide support for the index, losses for Mondi, Legal and General, and Coca Cola HBC weighed.
All eyes will now be on Jackson Hole and the Fed Chair for further hints on the trajectory of interest rates.