The FTSE 100 declined on Monday as selling in US technology stocks extended into European markets, while investors assessed developments in the Middle East, political unrest in France and movements in commodity prices.
London’s benchmark index fell 0.63% as of 07:53 GMT, alongside declines in Germany’s DAX and France’s CAC 40.
Concerns about valuations in the artificial intelligence sector contributed to the broader market decline following losses in US technology shares.
Sterling also weakened against the US dollar, while oil prices fell and gold advanced.
FTSE 100 Declines Alongside European Indices
The FTSE 100 was trading 0.63% lower in early dealings on Monday.
Elsewhere in Europe, Germany’s DAX declined 0.77%, while France’s CAC 40 fell 1.21%.
The European market movements followed selling in US technology stocks amid investor reassessment of valuations associated with artificial intelligence.
French equities also faced a period of domestic political uncertainty as demonstrations over living costs, inflation and conditions in public schools continued.
Sterling traded at $1.3316 against the US dollar, representing a decline of 0.10%.
French Protests Add to Political Uncertainty
France experienced nationwide demonstrations and incidents of unrest linked to concerns about living costs, inflation and public education.
President Emmanuel Macron addressed the situation in a televised statement, acknowledging public dissatisfaction and attributing much of the violence to far-left activists.
Authorities reported at least 2,400 arrests associated with the unrest.
Iranian Foreign Minister Abbas Araghchi also commented on the demonstrations through social media, following remarks by Macron linking higher living costs to the war.
The developments brought additional attention to France’s political and economic conditions.
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 the spread, which measures the additional yield investors require to hold French sovereign debt relative to German government bonds.
Middle East Security Alerts and US Foreign Policy Developments
Geopolitical developments remained in focus following security advisories issued by US embassies in 12 Middle Eastern countries.
The embassies warned of potential threats to US interests overseas from Iran and groups supportive of Iran, advising American citizens to exercise additional caution.
Separately, Saudi Arabia’s Civil Defence authorities briefly issued a threat alert for Jizan before withdrawing it.
US President Donald Trump also commented on relations with Russia and Iran.
In a social media statement, Trump said he wanted to avoid undermining negotiations with Russia and referred to progress in discussions.
His comments followed an executive order signed on Friday cancelling planned Russia-related sanctions.
In a separate statement supporting Israeli Prime Minister Benjamin Netanyahu ahead of the October 27 election, Trump discussed US policy towards Iran and the ongoing military situation.
The statements formed part of the broader geopolitical developments being assessed by financial markets.
Oil Prices Decline While Gold Advances
Energy prices moved lower during Monday’s trading session.
Brent crude futures fell 2.4% to $109.34 a barrel, while US West Texas Intermediate crude declined 2% to $98.89 a barrel.
The movements came as investors monitored geopolitical developments and their potential implications for energy supplies.
Gold prices moved higher.
Gold futures increased 0.65% to $4,209.10 an ounce, while spot gold gained 0.54% to $4,187.98 an ounce.
The differing movements in oil and gold occurred against a backdrop of geopolitical uncertainty and changes in investor positioning.
GSK Reports Lung Cancer Trial Response Rates
GSK (LSE:GSK) reported results from an early-stage clinical trial of its experimental lung cancer treatment, risvutatug rezetecan.
The study involved patients whose cancer had returned following previous treatment.
GSK said the treatment achieved a response rate of 61% at the higher dose tested, compared with 32% at the lower dose.
The results relate to an early-stage clinical study, and further development and evaluation would be required before any potential regulatory approval.
Serica Energy Revises Production Forecast
Serica Energy (LSE:SQZ) reduced its 2026 production forecast to slightly below 40,000 barrels of oil equivalent per day.
The company attributed the revision to a further delay in restarting the Triton production vessel.
Serica now expects the vessel to resume operations around the end of November.
The revised timetable affects the expected contribution from production assets connected to the Triton facility.
The company continues to operate a portfolio of oil and gas interests across the UK Continental Shelf.
LondonMetric Reports Higher Rental Income
LondonMetric Property (LSE:LMP) reported that its property portfolio valuation remained broadly unchanged during the six months ended September 2026.
The company said rental income increased by more than 8% to approximately £240 million during the period.
The valuation performance came despite an increase in five-year interest rate swap rates, which can influence property financing costs and investment valuations.
LondonMetric’s update reflects rental income growth across its property portfolio during the first half of its financial year.
Gamma Communications Postpones Takeover Votes
Gamma Communications (LSE:GAMA) postponed shareholder meetings relating to its proposed acquisition by Epiris-backed Bradbury Bidco.
The transaction values Gamma shares at 1,120 pence each.
The company rescheduled the shareholder votes for November 2 after receiving proxy votes representing fewer than 40% of eligible shares.
The proposed acquisition remains subject to the required shareholder approvals and other applicable transaction conditions.
Markets Monitor Corporate Updates and Geopolitical Risks
UK and European equities traded lower on Monday as investors considered the effects of the US technology sell-off, developments in France and continuing geopolitical uncertainty.
The FTSE 100 declined 0.63%, while the DAX and CAC 40 also recorded losses.
In commodities, Brent crude fell to $109.34 a barrel, while gold futures rose to $4,209.10 an ounce.
Company developments in London included GSK’s clinical trial results, Serica Energy’s revised production forecast, LondonMetric’s rental income update and the postponement of Gamma Communications’ takeover votes.
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