The UK’s FTSE 100 has tumbled as a sell-off spreads across global markets, amid concerns about the stability of regional banks in the US.

Shares in big global banks like Barclays and Standard Chartered were down by more than 5% on Friday morning.

The FTSE 100 was falling by about 1.5%, while the FTSE 250 was down by more than 1.6%.

Other Europe indexes were falling, with Germany’s Dax down by more than 2% and France’s Cac 40 declining by around 0.8%.

US regional banking stocks had fallen sharply on Thursday after two lenders revealed issues with bad and fraudulent loans, triggering a sell-off across the wider market.

Zions Bancorp announced it was taking a 50 billion US dollar (£37 billion) charge on the discovery of two bad loans, while Western Alliance said it was handling a potentially fraudulent borrower.

Russ Mould, investment director for AJ Bell, said investors were “spooked” by the news and “possibly opting to have lower exposure in case a crisis is brewing” in the banking sector.

“There is no evidence of any issues with the London-listed core banking names, but investors often have a knee-jerk reaction when problems appear anywhere in the sector,” he explained.

“In addition to news related to US regional banks, also weighing on sentiment were signs of liquidity pressures in America.

“Banks tapped the Federal Reserve’s short-term lending facility for more than 15 billion US dollars (£11 billion) over the past two days, the largest amount borrowed over a two-day period since the Covid pandemic.”

Richard Hunter, head of markets at Interactive Investor, said: “Of themselves, the credit losses announced by two regional banks were limited and seem to be contained.

“While there are hopes that this could be an isolated incident, the episode brought back unwelcome memories of the Silicon Valley Bank collapse in 2023 and, with several regional banks yet to report, investors are on high alert.

“Indeed, despite there being no obvious read across to the large banks, the reports were enough to put the skids under the sector as a whole, with losses of around 3% more or less across the board.”

At the same time, gold prices shot up to a new all-time high as investors sought out the safe-haven asset amid the stock market turbulence.

Prices reached about 4,380 US dollars (£3,260) per ounce on Friday morning.

Silver prices soared to a record high on the Multi Commodity Exchange (MCX) on Friday as the December 2025 futures contract climbed to Rs 1,70,415 per kilogram. This marks an increase of Rs 1,977 or 1.18% for the day.The surge in silver prices has resulted in a remarkable 19.8% gain for the month of October, rising from a closing price of Rs 1,42,145 on September 30. This significant monthly increase highlights strong festive demand and growing industrial interest in the metal.The recent rally has sparked renewed interest in silver’s long-term potential, with analysts attributing the uptrend to solid underlying fundamentals. Mahendra Patil, Founder and Managing Partner at MP Financial Advisory Services LLP (MPFASL), noted that silver is experiencing “a phase of structural endurance rather than speculative exuberance”, as quoted by Economic Times.Patil pointed out that while silver has historically been volatile, its past performance offers valuable insights. The metal previously approached the $50 per ounce mark in 1980 and 2011, and with 2025 marking its third such approach, the focus is now on whether it can maintain sustained momentum.In 2025, silver prices surged from $29 to over $47 per ounce, reaching “its highest level in more than a decade.” MPFASL attributes this momentum to several factors, including “higher expectations from US rate cuts, sustained central-bank buying, and industrial restocking across solar and electronics supply chains.”Highlighting silver’s dual appeal, Patil said, “Silver is gaining ground as both a symbolic and practical substitute. Beyond its decorative appeal, the industrial demand linked to solar panels, electronics, and electric mobility provides fundamental support to prices, creating a dual-use demand base that gold lacks.”The rise in silver demand is not limited to global markets. In India, silver imports have increased significantly. “Silver imports have expanded, reflecting its growing relevance as an industrial and investment metal within the renewable-energy and electronics value chains,” MPFASL reported.Data from the firm also revealed that silver delivered an annualized return of 32.92% in the CY2023–CY2025 period, with a volatility of 24.66%, based on historical performance. The correlation between gold and silver during this period stood at 0.95, indicating closely linked price movements, although silver’s trajectory has increasingly been driven by industrial factors.

Outlook

Looking ahead, MPFASL suggests that silver may continue to benefit from its industrial underpinnings. “Silver exceeded expectations, crossing $47 per ounce on renewed industrial restocking in solar and electronics,” the report noted.Most projections indicate that silver is expected to remain in the $44–50 per ounce range through FY2026. While gold may experience consolidation, “silver amplified the momentum as the cyclical bellwether of a broader industrial revival.”As India enters the festive season and global industrial restocking continues, the metal’s trajectory will likely depend on sustained demand from the electronics and renewable sectors. MPFASL adds that silver’s ability to surpass the $50 per ounce mark may depend on whether it can “finally build sustained momentum and move toward the next big landmark, its metaphorical ‘century.'”For domestic traders, Rs 1,70,415 now serves as a key resistance level on MCX. With industrial and festive tailwinds in play, attention will remain on whether silver can build upon this rally or consolidate near its current highs.(Disclaimer: Recommendations and views on asset classes given by experts are their own. These opinions do not represent the views of The Times of India)

Last Updated:October 17, 2025, 12:52 IST

The Hindustan Coca-Cola Beverages IPO might occur next year if it goes ahead, according to Bloomberg citing people familiar with the matter.

Hindustan Coca-Cola Beverages IPO: Coca-Cola is considering launching a $1-billion IPO of its Indian bottling unit Hindustan Coca-Cola Beverages Pvt, Bloomberg has reported citing people familiar with the matter. It said the global giant has met with bankers in recent weeks to discuss the possible IPO of the local arm.

“It’s still early in the process and the company hasn’t hired bankers for the deal yet,” the report cited the people as saying.

The IPO might occur next year if it goes ahead, as per Bloomberg.

(The story will be updated)

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A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More

A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More

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