London open: Stocks edge down amid AI bubble fears; M&S results in focus

(Sharecast News) - London stocks fell in early trade on Wednesday amid AI bubble fears, but losses were contained as the top-flight index does not have significant exposure to the tech sector.

At 0830 GMT, the FTSE 100 was down 0.2% at 9,699.28.

Emma Wall, chief investment strategist at Hargreaves Lansdown, said: "Halloween may be over, but markets are feeling spooked over AI stock valuations fears. Overnight, the S&P 500 fell 1.18% and the Nasdaq pulled back 1.84%, as Wall Street giants including Morgan Stanley and Goldman Sachs warned that AI stocks were in bubble territory.

"The negative momentum rippled through Asian markets in the early hours this morning, with Bloomberg estimating a total of $500 billion wiped off semi-conductor stock valuations globally."

Wall said the concerns are valid.

"While a number of AI firms have benefits from strong revenue and profit growth, this has been a narrow and extreme rally," she said. "Earlier this year, following both the DeepSeek disruption in January and the tariff tantrum in April, returns seemed to be more broad-based, with the equal weighted S&P 500 outperforming the market cap for periods. But this did not last, and once again high growth, tech biased, AI focused businesses have delivered much of the aggregate S&P 500 returns over the past six months.

"Investors should use this opportunity to crystallise impressive gains and diversify their portfolios to include a range of sectors, geographies and asset classes - adding resilience to portfolios."

In equity markets, Marks & Spencer fell as it posted a 55.4% drop in first-half adjusted pre-tax profit as it took a hit from a recent cyber attack.

In the 26 weeks to 27 September, adjusted pre-tax profit declined to �184.1m from �413.1m in the same period a year earlier.

The retailer pointed to a �101.6m charge in relation to the incident, with further charges of around �34m expected in the second half of the year, taking total costs to about �136m.

JD Wetherspoon and TP Icap also lost ground after trading updates.

On the upside, online rail ticketing platform Trainline surged as it lifted earning and sales targets after reporting a 14% jump in half-year profits.

The company, which sells tickets for journeys in the UK and Europe, said it now expects adjusted EBITDA growth of between 10% and 13%, up from original guidance of 6% to 9%. Net ticket sales are forecast to rise by 6% to 9%.

Barratt Redrow also gained as the housebuilder called on the government to take action to support demand ahead of the Autumn Budget later this month, following a slight slowdown in trading momentum over the start of the new financial year.

The company said it remains on track to hit its home completions targets this year, but net private reservation rates have eased slightly since the start of July due to challenging conditions and increased uncertainty ahead of the Budget.

Engineering firm Weir Group slumped as it reiterated its full-year guidance despite "elevated levels of uncertainty" related to critical metals disputes and further tariffs between the US and China.

Market Movers

FTSE 100 (UKX) 9,699.28 -0.16%

FTSE 250 (MCX) 21,986.89 -0.04%

techMARK (TASX) 5,567.42 -0.30%

FTSE 100 - Risers

Coca-Cola Europacific Partners (DI) (CCEP) 6,830.00p 2.25%

Barratt Redrow (BTRW) 377.80p 1.50%

Relx plc (REL) 3,420.00p 1.27%

InterContinental Hotels Group (IHG) 9,410.00p 1.07%

Land Securities Group (LAND) 632.00p 0.72%

Coca-Cola HBC AG (CDI) (CCH) 3,482.00p 0.58%

Hikma Pharmaceuticals (HIK) 1,773.00p 0.57%

BT Group (BT.A) 180.85p 0.50%

Unilever (ULVR) 4,655.00p 0.50%

M&G (MNG) 271.70p 0.48%

FTSE 100 - Fallers

Weir Group (WEIR) 2,756.00p -4.31%

Burberry Group (BRBY) 1,137.50p -2.65%

Marks & Spencer Group (MKS) 375.00p -2.47%

Smurfit Westrock (DI) (SWR) 2,767.00p -1.77%

Associated British Foods (ABF) 2,176.00p -1.63%

Scottish Mortgage Inv Trust (SMT) 1,134.50p -1.60%

BP (BP.) 447.90p -1.16%

Fresnillo (FRES) 2,150.00p -1.01%

DCC (CDI) (DCC) 4,834.00p -0.94%

Alliance Witan (ALW) 1,278.00p -0.93%

FTSE 250 - Risers

Trainline (TRN) 276.00p 8.49%

Bluefield Solar Income Fund Limited (BSIF) 76.00p 5.26%

Lancashire Holdings Limited (LRE) 674.00p 4.33%

Ceres Power Holdings (CWR) 321.00p 2.62%

Pagegroup (PAGE) 237.40p 2.33%

Drax Group (DRX) 725.00p 1.83%

SDCL Efficiency Income Trust (SEIT) 62.00p 1.81%

Pollen Street Group Limited (POLN) 900.00p 1.58%

Bakkavor Group (BAKK) 222.50p 1.14%

Bellway (BWY) 2,676.00p 0.83%

FTSE 250 - Fallers

TP Icap Group (TCAP) 255.00p -2.67%

Oxford Nanopore Technologies (ONT) 133.20p -2.27%

Wetherspoon (J.D.) (JDW) 627.00p -2.26%

Frasers Group (FRAS) 669.50p -2.12%

Playtech (PTEC) 242.50p -2.02%

Domino's Pizza Group (DOM) 183.40p -1.93%

PayPoint (PAY) 655.00p -1.80%

Polar Capital Technology Trust (PCT) 464.00p -1.80%

Allianz Technology Trust (ATT) 527.00p -1.68%

Baillie Gifford Japan Trust (BGFD) 918.00p -1.61%