London’s benchmark index fell 0.63% in early Monday trading as a broad sell-off in US technology stocks spread into European equity markets.
Germany’s DAX declined 0.77% and France’s CAC 40 dropped 1.21%, reflecting widespread pressure across the continent’s major indices.
Investor concerns about artificial intelligence valuations drove much of the selling pressure, extending losses that began in US technology shares during the prior session.
Sterling weakened against the US dollar, trading at $1.3316, a decline of 0.10%, adding further uncertainty for London-listed equities.
France faced additional pressure from nationwide demonstrations linked to concerns about living costs, inflation and conditions in public schools.
President Emmanuel Macron addressed the unrest in a televised statement, acknowledging public dissatisfaction and attributing much of the violence to far-left activists.
Authorities reported at least 2,400 arrests connected to the demonstrations, while Iranian Foreign Minister Abbas Araghchi also commented on the protests through social media.
ING analyst Francesco Pesole placed the spread between French 10-year government bonds and equivalent German Bunds at approximately 135 to 140 basis points.
Pesole questioned whether the protests alone would result in a sustained widening of that spread, which measures the additional yield investors demand to hold French sovereign debt.
US embassies in 12 Middle Eastern countries issued security advisories warning of potential threats to US interests from Iran and Iran-aligned groups, advising American citizens to exercise additional caution.
Saudi Arabia’s Civil Defence authorities briefly issued a threat alert for Jizan before withdrawing it, adding a further layer of uncertainty to the region’s security picture.
President Donald Trump commented on relations with Russia and Iran through social media, saying he wanted to avoid undermining negotiations with Russia and referring to progress in discussions.
His remarks followed an executive order signed on Friday cancelling planned Russia-related sanctions, a development that contributed to shifting investor sentiment.
Trump also issued a statement supporting Israeli Prime Minister Benjamin Netanyahu ahead of the October 27 election, addressing US policy towards Iran and the ongoing military situation.
In commodities, Brent crude futures fell 2.4% to $109.34 a barrel, while US West Texas Intermediate crude declined 2% to $98.89 a barrel.
Gold moved in the opposite direction, with futures rising 0.65% to $4,209.10 an ounce and spot gold gaining 0.54% to $4,187.98 an ounce.
GSK (LSE:GSK) reported results from an early-stage clinical trial of its experimental lung cancer treatment, risvutatug rezetecan, showing a response rate of 61% at the higher dose and 32% at the lower dose.
Serica Energy (LSE:SQZ) cut its 2026 production forecast to slightly below 40,000 barrels of oil equivalent per day, citing a further delay in restarting the Triton production vessel until around the end of November.
LondonMetric Property (LSE:LMP) reported rental income growth of more than 8% to approximately £240 million for the six months ended September 2026, with its portfolio valuation remaining broadly unchanged.
Gamma Communications (LSE:GAMA) postponed shareholder votes on its proposed acquisition by Epiris-backed Bradbury Bidco, which values Gamma shares at 1,120 pence each, after fewer than 40% of eligible proxy votes were received, rescheduling the meetings for November 2.