The FTSE 100 was dragged lower on Monday as concerns about the US tech sector crept into European equities.

Wobbles started in Nvidia last week after the chipmaker tanked on Friday. This led to a lower close in US equities, sapping some of the enthusiasm for technology shares. Weakness continued on Monday, with Meta falling 3% as the SP 500 started the session in the red.

Although the US tech sector fundamentally has little to do with UK shares, the ‘magnificent 7’ has been a source of optimism for global equity traders. Cracks are starting to appear in the AI-inspired rally, and traders are reacting accordingly.

With a lack of UK-centric news to buoy markets, the Non-Farm Payrolls played on investors’ minds as questions around when the Federal Reserve would first cut rates dented sentiment.

“The UK index’s limited tech exposure may have spared it from losses given the weakness on Wall Street originated in that sector. Artificial intelligence star Nvidia was a notable underperformer as investors absorbed a mixed jobs report,” said AJ Bell investment director Russ Mould.

“The influential non-farm payrolls data was a real curate’s egg of a release. The headline number was higher than expected but revisions to previous data suggested the unemployment rate was at its highest in two years. Lower wage growth will have encouraged the idea rate cuts are on the way but the hints at a cooling economy suggest the landing may not be as soft as the market would have liked.”

Entain was the FTSE 100’s biggest faller, losing 3% and extending a losing streak, which has seen the betting company lose almost 30% of its value.

St James’s Place was also a heavy faller after several brokers lowered their price targets for the beleaguered wealth manager.

The best performers on Monday were shares that had suffered weakness over the past few weeks. Miners and Imperial Brands were stronger.

Housebuilders were among the top risers as bargain hunters stepped into weakness caused by Jeremy Hunt’s dull budget. Rightmove also joined the action.

Admiral was the FTSE 100’s top gainer after Berenberg raised its target to 2,973p from 2,961p. Admiral shares were 3% higher.

HSBC analysts rate crisis-hit wealth manager St James’s Place ‘Hold’ after the company cut its dividend and lowered its share buyback programme.

St James’s Place shares sank earlier this month following news the company would be setting aside £426m for potential client redress related to poor service and high fees.

The provisions accompanied a slashing of the dividend to the extent St James’s Place shareholders will receive less the half of the dividend than they did in the prior year.

HSBC addressed whether there were any further ‘big skeletons in the closet’ and concluded the biggest detractors are now known but suggested there are still questions around pricing, product mix and distribution channels.

Given the uncertain backdrop, HSBC lowered its price target to 550p from 740p and has a hold rating on the stock.

HSBC analysts Steven Haywood and Faizan Lakhani wrote in a note:

“We see near-term uncertainty for SJP given ongoing UK macro uncertainty and management’s comprehensive review of the business. Also, we believe there could be some negative sentiment from the potential under-servicing of clients in the past. SJP trades at 2.3x 2024e TNAV with a 17.3% 2026e RoTNAV, and 8.2x 2025e cash PE with a 3.7% 2024e DPS yield and 2.9% 2024e share buyback yield on top.”

Currys shares were lower on Monday after Elliott Advisors said they were withdrawing there interest in the electronics retailer.

Currys shares traded down by 7% on Monday.

In a statement released on Monday, Elliott said that “following multiple attempts to engage with Currys’ Board, all of which were rejected, it is not in an informed position to make an improved offer for Currys on the basis of the public information available to it. Elliott therefore confirms it does not intend to make an offer for Currys.”

Although Elliott Advisors has publicly said they are no longer pursuing Currys, there is still the chance the company will be taken over by another party. Currys shares are still substantially higher than where they were before Elliot’s interest was first reported suggesting some are still hopeful a deal will be done.

“The decision by Elliott Advisors to withdraw bid interest in Currys doesn’t mean the target is no longer in play. Chinese group JD has already expressed interest and Elliott’s recent approach may have put the electricals retailer on the radar of others,” said AJ Bell investment director Russ Mould.

“There is logic in wanting to own Currys. It is the last major UK-wide seller of electricals still with a physical store presence. There are still plenty of people who like to go into a shop to get advice or technical assistance, compare products in person, and be able to collect items without having to risk a courier losing or damaging their goods during transit.”

The interest in Currys comes after the company took major steps to streamline its business and boost profitability.

“The business has been through a significant restructuring programme and is starting to see some rays of light in terms of the recovery story,” Russ Mould said.

“Elliott says Currys’ management refused to engage which at that point would normally see a bidder go hostile in their attempt to succeed with a takeover. Instead, it has just walked away which suggests that its original approach was highly opportunistic in the hope Currys could be bought on the cheap. Elliott’s statement implied it wanted more information on the group before considering a higher price but it couldn’t get the necessary details.

“Investors like Elliott typically want to pay as low a price as possible with the intention of potentially breaking up the group or driving big changes to realise hidden value in the business.

GCM Resources shares were sharply higher on Monday morning after the company announced a funding agreement with PowerChina International.

GCM Resources has signed a $1 billion contract with PowerChina International for mine development works at the Phulbari Coal and Power Project in Bangladesh.

The contract covers design, construction and commissioning of mine infrastructure, overburden removal, dewatering, and mining of valuable industrial mineral co-products expected to generate early cashflow.

GCM Resources shares were 42% higher at the time of writing.

The four-year mine construction contract is a step towards eventual coal extraction to fuel power plants, with first coal exposure expected in two years. GCM and PowerChina plan additional contracts for coal mining operations to supply at least 6,600MW of power generation over 30 years.

The contract’s notice to proceed awaits government approvals and financial closure, with PowerChina committed to assisting project financing per a previous agreement. GCM has received expressions of interest to purchase Phulbari coal from independent power producers SS Power and Barisal Electric Power Company, representing 27% of Bangladesh’s current coal power market.

Bangladesh presently has 6,035MW of installed coal-fired capacity requiring around 16 million tonnes of coal annually, equivalent to Phulbari’s planned production. However, the government aims to increase coal power to 11,830MW, necessitating 36 million tonnes of coal per year.