The FTSE 100 tumbled on Friday after hawkish comments by Federal Reserve officials slashed hopes of a December rate cut and sparked a global equity rout.

London’s leading index was trading down 1.8% at the time of writing, tracking a 1.6% decline in the S&P 500 and a poor overnight session for Asia. The German DAX was down 1.7% with US futures pointing to further losses in US cash trade on the open.

“Investors could be forgiven for thinking that the end of the government shutdown would bring some calm,” said Chris Beauchamp, Chief Market Analyst at IG. 

“Now it looks like we’ve just gone back to fretting about high valuations in tech stocks and the possibility that the Fed will duck the December rate cut. Neither of these things is terminal for the long-term bull market, but stocks at record highs are not best-placed to react well in the short term.”

UK investors also had to contend with more political uncertainty, with reports suggesting Rachel Reeves is now considering scrapping an increase in income tax at the upcoming budget, throwing weeks of interest-rate positioning into the air.

The Labour government promised to provide stability and growth, but has done neither. Indeed, the ongoing malaise in the UK economy is almost entirely down to its policies.

The U-turn on income tax was supposedly down to revised OBR forecasts showing the Chancellor no longer required to take measures to boost HMRC’s intake.

Starmer and Reeves are also on the ropes politically, so there may be an element of trying to please the electorate in the move.

Nonetheless, the bond market’s displeasure was on display, with 10-year gilt yields jumping 10bps to 4.54%. 

It was a bloodbath for UK stocks on Friday. Almost every FTSE 100 stock was trading negatively at the time of writing.

Land Securities was among the top fallers after reporting that underlying profit had fallen and that valuations were under pressure.

“Land Securities’ update this morning claims positive momentum amid a challenging backdrop for UK property. The company has lifted guidance for net rental income growth to 4-5% for the full year, underpinned by strong tenant demand and successful asset management in its prime retail and London office portfolios.

“However, underlying profit fell, reflecting continued asset revaluations and sector volatility. While management’s focus on cost savings and portfolio repositioning is delivering results, market headwinds from high interest rates and cautious investor sentiment should not be overlooked.”

Land Securities shares were down 4% at the time of writing.

Banks were heavily hit, with Barclays losing around 4% and Lloyds losing 3.5%

Traders banked profits in Fresnillo and Endeavour as gold prices tanked on concerns about interest rates. Fresnillo gave up 5.8% and was the FTSE 100’s top faller at the time of writing.

MicroSalt shares jumped on Friday after the low-sodium salt producer significantly raised its revenue projections, driven by strong order momentum from key customers.

The natural salt manufacturer reported unaudited sales of $1.66 million for the 10 months ended 31 October 2025 and now expects to exceed its original full-year revenue target of $2.0 million.

MicroSalt shares were 10% higher at the time of writing.

Major customer breakthrough

The upgrade follows developments with one of the world’s largest food and beverage manufacturers. In addition to a general uptick in volumes, MicroSalt has received its first bulk purchase order for a new product line, to be delivered to a specific retailer within the client’s network.

MicroSalt was confident this would turn into repeat business and anticipates similar orders monthly going forward.

Volume projections for this single product indicate sales exceeding $5.0 million in 2026, expanding to $11.0 million in 2027. Rollout is expected to commence in the second quarter of 2026, with full deployment by mid-year.

MicroSalt’s upgrade to guidance follows its announcement of a strategic relationship with Daiya Foods, from which the company has received an initial $50,000 order, with projected 2026 volumes of approximately $500,000.

Based on current customer commitments and volume estimates, MicroSalt now projects 2026 sales of $7.0 million, rising to more than $15.0 million in 2027.

“Our success in 2025 stems from focused strategic efforts to build a long lived, sustainable organisation that not only delivers healthier foods, but that also delivers top line revenue and investor returns,” said Rick Guiney, CEO of MicroSalt.

“The projections for 2026, 2027 are based upon our existing volume commitments and as we scale, we expect enhanced efficiencies and additional product development to support continued success. 2025 serves as a foundational building block by providing impeccable reference sales that will solidify our position in the market going forward.”

Investors will await further insight on margins going forward, with higher revenues setting the company up to become cash generative in the near term.

The FTSE 100 was firmly in negative territory on Thursday as disappointing updates from 3i and Aviva outweighed positive news from precious metals miner Endeavour.

London’s leading index was down 0.6%at the time of writing.

“The FTSE 100 was held back in its latest attempt to make the 10,000 summit by some shares trading ex-dividend and some poorly received corporate updates,” said AJ Bell investment director Russ Mould.

“This outweighed the tailwind provided by a weaker pound, which flatters the overseas earnings which dominate the index, and saw the FTSE 100 dip slightly in early trading on Thursday. Sterling fell thanks to weaker than expected UK growth figures for September.

“An end to the government shutdown in the US was followed by gains for gold and silver which, in turn, boosted precious metals miners in London.”

Aviva’s result failed to inspire any confidence, and shares slipped 3%.

“Aviva shares dropped around 5% in early trading – a harsh reaction to what looks like a solid set of results. Management raised targets, accelerated timelines, and gave investors a clearer path to buybacks, all while showing good progress on integrating Direct Line,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

However, it was 3i Group that was the FTSE 100’s top faller after the private equity group released a disappointing update on its largest portfolio company.

“The fortunes of private equity investor 3i are heavily tied to Action, with the company continuing to increase its stake in the Dutch discount retail chain,” Russ Mould said

“This has largely been a good news story for the group as Action has achieved significant growth in recent years.

“However, today’s numbers were a little short of expectations. The company warning of an uncertain backdrop will raise concerns about the outlook for Action and its wider portfolio.”

Rolls-Royce issued a steady trading statement that pointed to further growth but didn’t do enough to spark an uptick in the stock which has done tremendously well over the past few years. Shares were slightly lower on Thursday.

Although the FTSE 100 painted a gloomy picture on an index level, there were some big individual winners on Thursday.

Endeavour Mining soared around 10% as the gold miner confirmed bumper increases in free cash flow as a result of the higher gold price. EBITDA rose 110% and the group reduced its overall net debt. 

Fresnillo shares rose 4% in sympathy.