UK stocks slip as banks drag, earnings in focus

London's FTSE 100 index fell to its lowest level in a week, slipping 0.5% to 10,699.33 points, as heavyweight banks and rising oil prices dampened risk appetite. The mid-cap FTSE 250 index also declined 0.9%, setting for its biggest one-day slide since October 1. Oil prices surged more than 3%, reaching over US$112 a barrel, while energy stocks surged.

Banks, however, were the primary reason for the decline, trading close to their June lows. Barclays dipped marginally after missing estimates for third-quarter profit and announcing plans to cut around 5,000 jobs. Precious metal miners and industrial metal miners suffered the highest percentage losses, down over 3% each as gold and copper prices slipped over 1%.

Elevated oil prices have sparked concerns about inflation, leading major central banks to raise interest rates. British inflation rose more than anticipated last month, reinforcing the need for a November rate hike by the Bank of England. Corporate earnings will continue to be a key focus for investors as they seek insights into the impact of geopolitical uncertainty and higher borrowing costs on various economies.

Among the blue-chip stocks, Rentokil Initial led the FTSE 100 with an 8.2% gain after reporting higher Q3 organic revenue growth and a US$200 million share buyback plan. Sainsbury's, Britain's second-largest supermarket group, saw its shares fall 3.7% after second-quarter sales growth slowed. Crowne Plaza owner slipped 3.1% as rising interest rates and the fallout from the Iran conflict overshadowed its quarterly room revenue beat.

The London Stock Exchange Group gained 4.3% following an increased 2026 revenue outlook and the acquisition of financial data firm Octus for approximately US$3.54 billion.