FTSE 100 Swings Amid Geopolitical Tensions and Bond Market Sell-Off

By EC Assets · Published 5 October 2026

The FTSE 100 experienced mixed movements this week. London's main stock index saw declines linked to rising borrowing costs and geopolitical concerns, even as other European markets showed some gains. The index also retreated after a series of earlier advances. The FTSE 100 slumped amid a sell-off in the bond market. Britain's borrowing costs climbed to their highest level since 1998, contributing to the decline. The flagship stock index decreased by as much as 2% on Thursday, marking its worst performance. British stocks also fell on Friday due to a near-paralysed Strait of Hormuz. A threat from Trump to escalate against Iran further weighed on markets, despite August retail sales delivering a sharp beat on forecasts. In contrast, other European shares rose following a sell-off the previous week. French stocks, however, lagged behind their regional counterparts. The euro was impacted by France's debt burden. The FTSE 250 index, which tracks mid-cap companies, rose. Hochschild Mining gained after its first-half revenue jumped 62%. Investors are monitoring several key events. Nvidia earnings are under assessment, alongside US inflation data. Talks between Iran and Oman are also in focus for investors. This article is intended for informational purposes only. It does not constitute investment advice.