The FTSE 100 has been a good place for investors over the past two weeks, and although the index fell on Friday, it fared much better than overseas peers.
London’s leading index fell 0.6% on Friday, compared with a 0.8% drop in the German DAX and a 0.7% decline in France’s CAC.
The NASDAQ closed down 2.6% overnight, and the S&P 500 lost 1.2% amid accelerating selling of technology shares. The FTSE 100 opened marginally higher before investors started offloading positions as US futures edged lower.
“The FTSE 100 rapidly surrendered some modest early gains as global markets contend with concerns around surging oil prices and the sustainability of AI spending,” said AJ Bell head of financial analysis Danni Hewson.
“Oil is at five-month highs amid speculation there may be renewed US-Israeli strikes after next month’s US midterm elections.
“Escalating tensions in Ukraine and the prospect of increased energy demand as the northern hemisphere heads into the winter months are only adding to the upwards pressure on oil and gas prices.”
The main support for the FTSE 100 in recent weeks has come from higher oil prices, which have boosted oil majors BP and Shell. The same was true on Friday, with BP up 2.3% and Shell up 2%. Ithaca Energy was the FTSE 100 top riser, as it has been on many occasions over the past two weeks.
Ithaca Energy is the FTSE 100’s best-performing stock of 2026, taking the title from Computacenter in recent weeks. Ithaca Energy joined the FTSE 100 in September, while Computacenter was promoted in June.
After making a storming start to life in the FTSE 100, Computacenter has struggled amid the AI sell-off and was down in the dumps again on Friday, losing 4%.
Rolls-Royce was the FTSE 100’s biggest faller on Friday, crashing 6.4%. Games Workshop, Burberry, and Melrose were among the day’s other fallers.