Business
Stocks tumble amid US banking fears
The FTSE 100 closed down sharply on Friday, although well above early lows, as investors weighed Thursday’s hefty falls on Wall Street sparked by fears surrounding US regional banks.
The FTSE 100 index closed down 81.52 points, 0.9%, at 9,354.57. It had earlier traded as low as 9,276.91.
The FTSE 250 ended 208.40 points lower, 1.0%, at 21,782.96 while the AIM All-Share shed 17.24 points, 2.2%, to 772.65.
For the week, the FTSE 100 was down 0.8%, the FTSE 250 was 0.1% lower, and the AIM-All Share declined 1.7%.
Wall Street took a tumble on Thursday and shares of regional banks took a hit after Zions Bancorp and Western Alliance said they had been victims of fraud on loans to funds that invest in distressed commercial mortgages.
Zions Bancorp said it would take a 50 million-dollar (£37 million) charge related to a loan issued by its California Bank & Trust division, while Western Alliance said it had begun legal proceedings over a bad loan.
“While everyone has been watching the tech sector for signs of a bubble, it’s the banking sector that’s the root cause of a minor market sell-off today,” said Russ Mould, investment director at AJ Bell.
Mr Mould noted “pockets” of the US banking sector including regional banks have given the market cause for concern.
“This includes Zions flagging an unexpected loss on two loans and Western Alliance alleging a borrower had committed fraud,” he added.
But he said the pullback in UK-listed banks will be “sentiment-driven”.
“Investors have been spooked and moved to trim positions in the sector, possibly opting to have lower exposure in case a crisis is brewing. 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 added.
Barclays shed 5.7%, while Standard Chartered fell 3.5% and HSBC 2.5%. Lloyds Banking Group and NatWest ended down 2.4% and 2.9% respectively.
ICG, which has exposure private credit and asset backed finance fell 5.5%.
Stocks in New York were lower at the time of the London close. The Dow Jones Industrial Average was down 0.1%, the S&P 500 was 0.3% lower, while the Nasdaq Composite declined 0.6%.
Shares in Zions rallied 2.5% while Western Alliance firmed 0.9% at the time of the London equity market close, although both were well below opening highs.
Gold miners were also prominent fallers in London as the price of the yellow metal retreated from record highs.
Gold traded at 4,242.28 dollars an ounce on Friday, down from 4,270.73 dollars on Thursday.
The latest volatility saw Fresnillo fall 11% and Endeavour Mining drop 5.5%.
The pound was quoted lower at 1.3398 dollars at the time of the London equity market close on Friday, compared with 1.3429 dollars on Thursday.
The euro stood at 1.1664 dollars, lower compared with 1.1671 dollars. Against the yen, the dollar was trading at 150.31 yen, lower compared with 150.83 yen.
The yield on the US 10-year Treasury was quoted at 4.00%, trimmed from 4.03% on Thursday. The yield on the US 30-year Treasury stood at 4.60%, narrowed from 4.62% on Thursday.
In European equities on Friday, the CAC 40 in Paris closed ended 0.2% lower, while the DAX 40 in Frankfurt slid 1.7%.
Bucking the weaker trend in London, Pearson rose 2.3% as it said it remains on track to meet 2025 market expectations after reporting a pick-up in sales growth during the third quarter, driven by growth of its Virtual Learning segment.
The London-based educational materials publisher said underlying group sales rose 4% year-on-year in the third quarter, taking growth for the first nine months of 2025 to 2%. Pearson said it expects stronger sales growth in the fourth quarter due to “known business unit dynamics”.
Chief executive Omar Abbosh said Pearson is “well positioned for the opportunities that lie ahead”.
Smiths Group climbed 1.7% after announcing the sale of Smiths Interconnect to Molex Electronic Technologies Holdings, part of Wichita, Kansas-based Koch Industries, at an enterprise value of £1.3 billion.
The London-based engineering group said the sale price for its electronic connectors business represents 15.1 times headline earnings before interest, tax, depreciation and amortisation of £86.1 million for financial year 2025, which ended July 31.
Analysts at Jefferies said it is a “good price” and “marks a significant milestone in the group’s strategy of unlocking value across its portfolio of businesses”.
Despite Friday’s falls, Morgan Stanley said it is positive on UK equities from a European equity strategy perspective.
“Our call is less about UK macro, and more UK equities’ rising level of attractive, bottom-up drivers, growing interest from investors from relatively low levels this year, and the added benefit of the market’s low beta,” the bank said.
Morgan Stanley said investor interest in the UK is on the rise from relatively low levels, while even some of the “more challenged” portions of the UK equities market (discretionary, rate sensitive) are beginning to face relief as expectations start to pick-up that the November 26 budget will be “less bad than feared” for equities and rates markets.
“UK equities are low beta, underowned, and awash with idiosyncratic drivers,” the broker added.
Brent oil traded at 60.03 dollars a barrel, down from 61.70 dollars late on Thursday.
The biggest risers on the FTSE 100 were Pearson, up 25.5 pence at 1,119.5p, Haleon, up 6.7p at 351.8p, Reckitt Benckiser, up 106.0p at 5,910.0p, Coca-Cola HBC, up 62.0p at 3,556.0p and Smiths Group, up 40.0p at 2,406.0p.
The biggest fallers on the FTSE 100 were Fresnillo, down 276.0p at 2,352.0p, Barclays, down 21.45p at 357.8p, ICG, down 113.0p at 1,929.0p, Endeavour Mining, down 194.0p at 3,356.0p, and Antofagasta, down 124.0p at 2,663.0p.
Monday’s global economic diary sees retail sales and industrial production in China.
Later in the week inflation reports are due in the US, UK, Japan and Canada.
Next week’s UK corporate calendar sees third quarter results from lenders Barclays, Lloyds Banking Group and NatWest plus consumer goods groups Unilever and Reckitt Benckiser.
Contributed by Alliance News.
Scottish Greens will “call out the lies of big polluters”, co-leader Gillian Mackay said as she branded plans to develop the Rosebank oil field as “pure climate vandalism”.
Ms Mackay spoke out as demonstrators opposed to drilling the site gathered in London on Saturday.
Plans to develop the North Sea field – which is estimated to contain up to 300 million barrels of oil – have been submitted again by owners Equinor.
However, Ms Mackay told the Scottish Green Party conference in Edinburgh: “We have to be the party that calls out the lies of big polluters.”
Ms Mackay, who was elected co-leader with fellow MSP Ross Greer in August, told her fellow Scottish Greens: “Drilling for new oil and gas in fields like Rosebank will do nothing to lower energy bills or protect our planet.
“It is pure climate vandalism and we have to stop Rosebank.”
Development of the oil field, which lies 80 miles west of Shetland, had been approved by the Conservative government in 2023 but that decision was challenged in the courts in the wake of a Supreme Court ruling which said the emissions created from burning fossil fuels should be considered when granting permission for new drilling sites.
Her comments came as Zack Polanski, leader of the Green Party of England and Wales, insisted the UK is “one of the most nature depleted countries in the world”.
Addressing protesters in London, Mr Polanski said: “The very least this Government need to do is to stop making things worse.”
Ms Mackay also used her conference speech to hit out at the UK Government over the closure of Scotland’s only oil refinery in Grangemouth.
Hundreds of jobs were lost after owners Petroineos closed the refinery earlier this year, with Ms Mackay, who grew up in the area saying: “I’m sick of governments and corporations using tags like ‘just transition’ as a cheap slogan.
“What happened in Grangemouth is not a just transition.
“Our communities don’t need empty words, words don’t pay the bills, or put food on the table.
“They need real plans to provide real jobs and real opportunities.”
Ms Mackay insisted: “That site could have been saved. Labour promised to save it – they promised £200 million – and the message from the workers is clear: show us the money.”
She said that the Grangemouth plant “could have been nationalised”, adding: “We cannot leave the future of our communities in the hands of billionaires who are all too happy to abandon us when the money dries up.”
With the Scottish Greens having set the target of overtaking Labour in May’s Holyrood ballot, Ms Mackay said her party was “on the verge of a historic election” with the “chance to elect more green voices than ever before”.
She also told how the birth of her first child, Callan, in June meant she had “never felt more committed to building a greener Scotland”.
She joked that she was speaking at Saturday’s conference “in relatively one piece, without too much baby dribble on me” as she said the Green model, with two co-leaders at the helm, had allowed her to take on the challenge.
“In other parties there would have been a whole load of barriers to a new mum being elected to a leadership role,” Ms Mackay said.
“It is only because of our co-leadership model and the support of ordinary members, I have been afforded this opportunity.”
She continued: “The support I have had says something about our party and the values we stand for.
“When I think about the country I want us to be, it is one where we support each other, one where we lift each other up and one where we do things differently.”
New Delhi: Zoho’s Chief Scientist and Co-founder Sridhar Vembu on Saturday agreed with former IMF Chief Economist Gita Gopinath, regarding the huge economic bubble in the US stock market.
Vembu said that a systemic event like the global financial crisis of 2008-9 cannot be ruled out.
Zoho’s founder responded on social media platform X to Gopinath’s warning saying, “I agree with Dr Gita Gopinath. The US stock market is in a clear and massive bubble. The degree of leverage in the system means that we cannot rule out a systemic event like the global financial crisis of 2008.”
Vembu also warned that the gold price trend is indicative of a systemic financial risk.
“Gold is also flashing a big warning signal. I don’t think of gold as an investment, I think of it as insurance against systemic financial risk. Ultimately finance is all about trust and when debt levels reach this high, trust breaks down. I am sure AI will work hard to repay all the debt in the system,” his X post read.
His post tagged Gopinath’s warning which said that global exposure “to US equities is at record levels.”
“A stock market correction would have more severe and global consequences as compared to what followed the dot-com crash. The tariff wars and lack of fiscal space compounds the problem,” Gopinath said.
She urged for higher growth and returns across more countries and regions instead of a focus on the US, adding that the underlying problem is not “unbalanced trade” but “unbalanced growth”.
Earlier in the month, Gopinath said that US President Donald Trump’s tariff proposals acted as a tax on US consumers, raised inflation, and had no benefit to the American economy.
Last Updated:
SIP (Systematic Investment Plan), TIP (Term Insurance Plan), and HIP (Health Insurance Plan) together create a balanced mix of growth, protection, and security.
Experts suggest maintaining an emergency fund covering 3-6 months of expenses.
In today’s fast-paced and stressful world, achieving financial stability early in life is crucial. Experts say that by the age of 30, everyone should aim to have a strong foundation in three key areas – SIP (Systematic Investment Plan), TIP (Term Insurance Plan), and HIP (Health Insurance Plan). Together, these create a balanced mix of growth, protection, and security.
Rakesh Bhandari, director at Nirmal Bang, said, “This should be done carefully and very smartly so that your retirement life is spent in the right way.”
In Your 30s? Build Your ‘SIP-TIP-HIP’ Foundation
Your 30s are the decade when most major financial goals, such as buying a home, planning for children’s education, and preparing for retirement, begin to take shape. Setting up this three-pillar framework early helps you grow wealth, safeguard income, and protect against rising health costs without unnecessary complexity.
1. SIP: Systematic Investment Plan for Long-Term Growth
A SIP helps you invest regularly in equity mutual funds, enabling rupee-cost averaging and the power of compounding over time.
Why it matters: Long-term investments in Indian large-cap equities (like the Nifty 50 TRI) have historically delivered double-digit annualised returns. Multiple rolling-return studies (1992-2024) show that the longer you stay invested, the lower your chances of negative returns. While past performance is not a guarantee, time in the market, not timing the market, has consistently worked in investors’ favour.
Smart move: “Start small but stay consistent. Increase your SIP amount by 5-10% every year in line with salary hikes. This ‘step-up SIP’ strategy can significantly boost your corpus compared to a flat SIP,” said Bhandari.
Action cue: Pick an amount you can sustain even during market downturns and automate the investment for discipline.
2. TIP: Term Insurance Plan for Income Protection
A Term Insurance Plan (TIP) ensures your family’s financial stability if something unexpected happens to you.
Why start in your 30s: Premiums are lowest when you’re young and healthy. You can also lock in a long coverage period that spans your peak earning years.
How much cover: A general rule is to have coverage worth 10-15 times your annual income, adjusted for loans and future goals. Online insurance calculators can help fine-tune the number.
What it does: Provides a safety net so your family’s lifestyle, education, and long-term financial goals stay intact even in your absence.
Action cue: “Opt for a pure term plan, avoid investment-linked policies. Choose adequate coverage and a tenure that extends beyond your working life and your children’s education years,” Bhandari added.
3. HIP: Health Insurance Plan for Rising Medical Costs
Health insurance is your shield against medical inflation, which continues to rise sharply in India.
The reality: Government data shows health inflation averaging around 4-5% annually, while industry studies suggest actual medical cost inflation is often in the low to mid-teens. With nearly 46-47% of health expenses still paid out-of-pocket, a single hospitalisation can derail your savings.
What to buy: A family floater plan with adequate sum insured, restoration benefits, day-care coverage, and a no-claim bonus. As your income grows, enhance protection with a super top-up plan.
Action cue: “Buy early. You’ll pay lower premiums, complete waiting periods sooner, and stay protected as lifestyle-related health risks rise,” Bhandari said.
How the Trio Works Together
- SIP builds wealth for long-term goals.
- TIP safeguards those goals if your income stops unexpectedly.
- HIP prevents medical emergencies from eating into your investments.
Together, they create a balanced and resilient personal finance system.
Simple Hygiene Rules
Maintain an emergency fund covering 3-6 months of expenses.
Review your cover amounts annually, especially after salary hikes, new loans, or life changes.
Automate SIPs and insurance premiums so your protection never lapses.
Disclaimer:Disclaimer: The views and investment tips shared in this article are for general information purposes only. Readers are advised to consult a certified financial advisor before making any investment decisions.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
October 18, 2025, 16:14 IST
Read More
Lakers start Vincent for LeBron in opener preview
The Coziest I’ve Been Was While Testing Gifts for the Cold Person in Your Life
Developing Rosebank oil field ‘pure climate vandalism’, Scottish Green insists
-
Tech1 week agoApple Took Down ICE-Tracking Apps. Their Developers Aren’t Giving Up
-
Sports1 week agoKamala Harris hosts WNBA player to discuss alleged conversation with league commissioner
-
Tech1 week agoMen Are Betting on WNBA Players’ Menstrual Cycles
-
Business1 week agoConsumer caution ahead of Budget drives drop in footfall – BRC
-
Business1 week ago‘Need very badly’: Donald Trump announces Arctic cutters deal with Finland; US to buy 11 Icebreakers – The Times of India
-
Tech1 week agoSize doesn’t matter: Just a small number of malicious files can corrupt LLMs of any size
-
Entertainment1 week agoPrince Albert of Monaco leads the Monaco Explorations in the Aegean Sea
-
Business1 week agoDelta says premium travel is set to overtake coach cabin sales next year