UK stocks fall, with concerns over additional energy price hikes

"Asian markets traded lower overnight, extending the tech-led weakness seen in the US after the Nasdaq led losses into the close. Sentiment was further pressured by China's latest trade data, which showed a 1.1% drop in exports for October, raising questions over the strength of underlying demand. This follows recent signs of front-loading shipments ahead of new US tariffs, suggesting that what had appeared to be resilient momentum may have been temporary."

"Meanwhile, geopolitical and trade tensions continue to weigh on the outlook despite the recent US-China trade agreement. The US administration's move to block Nvidia's B30A chip sales overseas highlights the continued strategic friction in advanced computing, while China's tightening control over rare earth mining licenses underscores a reversion away from the era of freely open exports of these key materials."

"In Europe, the FTSE 100 opened softer, trailing broader regional indices. Domestic data pointed to resilience in the UK housing market, with Halifax reporting that prices hit a new record high in October despite speculation that Labour's upcoming autumn budget may hit affordability for UK workers. However, the inflation picture remains mixed, with recent cooling of CPI data under pressure as UK energy bills look set to rise again in April."

Asian markets fell as tech-led losses from the US extended into the Asian session, with the Nasdaq dragging sentiment. China's October exports declined 1.1%, prompting concerns about underlying demand after signs of front-loading ahead of new US tariffs. Geopolitical tensions persisted as the US blocked Nvidia's B30A chip sales overseas and China tightened rare earth mining licenses. In Europe, the FTSE 100 opened softer while UK house prices reached a record high in October despite affordability concerns. Inflation data remain mixed and corporate results, including a fall in IAG profits, weighed on sentiment. US mega-cap tech and semiconductors underperformed, and short positions in some tech names added to valuation worries, though futures showed a firmer tone.

Read at London Business News | Londonlovesbusiness.com