FTSE Hits Seven-Week Low as Brent Surges
FTSE Finish Line 10-9-2026: FTSE Hits Seven-Week Low as Brent Surges
The FTSE 100 leaked lower on Thursday to touch a seven-week low, weighed down by heavy selling in mining stocks and a sharp drop in Associated British Foods. Market sentiment deteriorated further as Brent crude surged past $105 a barrel following warnings from Iran that it was prepared for a more intense conflict, compounding fears over energy-driven inflation and persistent monetary tightening.
Mining heavyweights were the biggest losers, with Antofagasta and Anglo American down 4.7% to over 5%, while Endeavour Mining, Glencore, and Rio Tinto fell between 2.4% and 3.5%, and Fresnillo was down 1.1%. Associated British Foods proved to be among the biggest index laggards, tanking 9% to nearly 11% despite raising adjusted earnings guidance and announcing a Sheffield-based automated home delivery launch for Primark. The sell-off was driven by weaker-than-expected Primark sales, plans to demerge the fashion retailer by December 2027, and a negative outlook from its Sugar division. Broad-based losses extended across M&G, Computacenter, Airtel Africa, Melrose Industries, Halma, Croda International, IMI, 3i Group, HSBC Holdings, Marks & Spencer, Centrica, Polar Capital Technology Trust, and electricals retailer Currys, which fell 1.3% even after backing its full-year view with a 7% rise in 17-week like-for-like sales.
Energy majors offered defensive insulation against the broader slump, with BP gaining 1% to 2% and Shell rising 1.8% as elevated crude prices bolstered the sector. Compass Group surged over 2%, leading additional upside across Whitbread, Hiscox, IAG, ICG, Entain, JD Sports Fashion, Imperial Brands, St. James's Place, Smith & Nephew, Metlen Energy & Metals, and Howden Joinery Group, which advanced between 0.7% and 1.3%.
In central banking and macro developments, the European Central Bank raised interest rates by 25 basis points in line with market expectations, while upgrading its inflation forecasts and warning that price growth will likely remain above its 2% target for an extended period. Domestically, the RICS UK Residential Market Survey showed the house price balance improving to a five-month high of -28% in August from -29% in July, indicating signs of stabilisation. However, RICS cautioned that property prices are still expected to slide over the next three months before stabilising over a 12-month horizon, with risks pinned on elevated interest rates and potential tax hikes in October's upcoming budget.
Finish Line: U.K. equities succumbed to macro and stock-specific pressure as crude oil surging above $105 and a major slump in AB Foods drove the index to multi-week lows. While energy majors and select consumer names provided partial support, mining weakness and persistent rate-hike signals from European central bankers kept buyers on the sidelines.
TECHNICAL & TRADE VIEW – FTSE100
Daily VWAP Bearish
Weekly VWAP Bearish
Above 10700 Target 11150
Below 10400 Target 9500
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!