FTSE 100 falls as volatility spikes

​​​FTSE 100 outperforms amid broad market weakness

​The FTSE 100 opened around 1%  lower but demonstrated relative resilience compared to continental European indices. The index is on track for a fourth consecutive session of losses.

​Defensive heavyweights helped limit the decline, with AstraZeneca, Imperial Brands and Intermediate Capital Group numbering among the few gainers. The index's sector composition provided a cushion against broader selling pressure.

​The FTSE 250 fell in line with the large-cap index as weakness remained broad-based. UK gilts tracked European bonds lower while the British pound held steady above 1.31 against the US dollar.

​European equities slide on multiple concerns

​European markets fell to one-week lows as risk appetite deteriorated sharply. Tech-valuation worries intensified after recent strong gains left the sector looking stretched.

​The STOXX Europe 600 declined as miners, banks and industrials led the retreat. Fading hopes of near-term Federal Reserve (Fed) rate cuts removed a key support for risk assets.

​Markets had priced in more aggressive easing than policymakers currently signal. The reassessment of rate-cut expectations weighed heavily on growth-sensitive sectors.

​Traders are now awaiting Nvidia's results and the delayed US jobs report for fresh direction. These data points will be crucial in determining whether the current weakness extends further.

​Volatility surges as investor nerves mount

​The VIX volatility index pushed back above 23, marking a significant jump in investor nervousness. The spike signals mounting concerns about near-term market direction as equities continue their retreat.

​Comparisons are emerging with previous bouts of turbulence seen in October. The current rise in volatility comes amid growing uncertainty over monetary policy and corporate valuations.

​The elevated VIX reading suggests investors are positioning more defensively. 

​Heightened volatility creates both risks and opportunities for active traders. Those who can navigate choppy markets effectively may find attractive entry points.

​Precious metals slide despite risk-off mood

​Gold, silver and platinum all declined sharply despite broader risk-off moves across markets. The retreat caught many traders off guard given the typical safe haven status of precious metals.

​The weakness in gold trading pulled London-listed mining stocks lower. Fresnillo and Endeavour Mining were among the worst performers on the FTSE 100 as precious metal prices slid.

​The disconnect between falling metal prices and rising risk aversion suggests profit-taking may be the primary driver. Gold had rallied strongly in recent months, creating room for a technical correction.

​Silver trading also came under pressure as the broader precious metals complex weakened. Traders will be watching whether this represents a temporary pause or signals a deeper shift in market dynamics.

​Safe haven assets show mixed performance

​Traditional safe haven assets displayed divergent behaviour during the latest bout of market weakness. The Japanese yen and Swiss franc both strengthened as investors sought refuge from equity market turbulence.

​US Treasuries also attracted buying interest, with yields declining as bond prices rose. This flight to quality contrasted sharply with the weakness seen in precious metals.

​The mixed performance across different safe havens highlights how the current pullback appears concentrated in commodities. Currency and bond markets continue to function as expected during risk-off periods.

​Corporate updates reflect cautious outlook

​FirstGroup issued slightly lower guidance for fiscal year 2026 (FY26), adding to caution around UK-focused stocks. The transport operator's revised forecasts reflected ongoing operational challenges.

​Great Portland Estates highlighted ongoing uncertainty related to fiscal policy changes. The commercial property group's comments underscored concerns among UK-listed firms about the Budget impact.

​Diploma exceeded expectations in its latest update, providing a rare bright spot. The technical products supplier's resilient performance stood out against a backdrop of weaker corporate news.

​Bodycote​ reported modest organic growth as industrial demand showed signs of stabilisation. The engineering services firm's update suggested some sectors are weathering economic headwinds better than others.

​Wealth planning and crypto pressures emerge

​Ultra-wealthy UK families have been restructuring assets ahead of Budget announcements. Concerns over potential tax rises have prompted defensive positioning among high-net-worth investors.

​The asset reallocations reflect broader uncertainty about the fiscal policy direction. Wealth advisers report increased activity as clients seek to protect their portfolios.

​Bitcoin briefly dropped below $90,000.00, erasing year-to-date gains and weighing on digital-asset sentiment. The crypto selloff added to the risk-off atmosphere across markets.