FTSE 100 falls as oil prices and AI concerns weigh
Summarised from 2 outlets · Updated 23 Oct, 18:02 · Archive
The FTSE 100 ended Friday down 0.3% as rising oil prices and doubts about artificial intelligence spending kept investors away.
The FTSE 100 ended Friday down 34.67 points, or 0.3%, at 10,690.36, completing a week in which the index fell 1.8%. The FTSE 250 gained 0.1% while the AIM all-share lost 0.6%. European markets were mixed, with Paris down 0.4% and Frankfurt down 0.8%. In New York, the Dow Jones fell 0.8%, the S&P 500 was 0.1% lower, and the Nasdaq Composite rose 0.2%.
Two main factors drove the selling pressure. Oil prices rose sharply as Brent crude headed above 115 dollars per barrel on Friday, its highest level since early May, on supply concerns linked to Middle East conflict. Bank of America strategists warned of 'mounting signs of markets becoming increasingly unwilling to fund the AI infrastructure build-out', citing concerns about rising funding costs squeezing returns and competitive pressures potentially leading to disappointing returns on artificial intelligence investments, similar to previous large-scale spending cycles.
The Nasdaq had stabilised after tumbling 2.6% on Thursday, its worst day since July. Oil and gas prices rising this week have fuelled broader worries about higher inflation weighing on economic growth globally.
How it is being reported
- FTSE 100 slips as oil price hits five-month highOil and gas prices have risen strongly this week, adding to worries about high inflation weighing on economic growth around the world.Evening Standard · 23 Oct, 17:31
- FTSE 100 slips as oil price hits five-month highOil and gas prices have risen strongly this week, adding to worries about high inflation weighing on economic growth around the world.Independent Business · 23 Oct, 17:31
In this story: FTSE 100 · Bank of America · Paris · Frankfurt · New York · Middle East
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