FTSE 100 falls as WPP crashes and tech jitters spread

​​​WPP plunges to financial crisis lows

​WPP shares crashed as much as 13% to their lowest level since 2008 after the advertising giant slashed full-year guidance and launched a strategic review. The company is grappling with client cutbacks and industry disruption from artificial intelligence (AI), raising fresh questions about its ability to navigate a rapidly changing media landscape.

​Analysts at Barclays warned that WPP's rock-bottom valuation – already one of the steepest discounts in the FTSE 100 – is "not enough" to offset mounting growth and margin risks. The company's struggles highlight broader challenges facing traditional advertising firms as AI tools reshape creative workflows and clients rein in marketing budgets.

​The strategic review will examine all aspects of WPP's operations, with investors bracing for potential restructuring costs. The company has been trying to simplify its sprawling business model for years, but progress has been frustratingly slow.

​With the shares trading at multi-year lows, some contrarian investors may see value emerging. However, the near-term outlook remains clouded by structural headwinds that show no signs of abating.

​Shell slips despite strong results and buyback

​Shell edged 0.3% lower despite delivering solid third-quarter (Q3) earnings and announcing a $3.5 billion buyback plan, as falling oil prices overshadowed the positive news. Brent crude oil retreated toward $64.00 a barrel, with energy stocks struggling to shake off broader concerns about demand weakness.

​The disconnect between Shell's strong operational performance and its share price underscores the market's fixation on the direction of oil prices. Despite robust profits and generous shareholder returns, the stock has struggled to gain traction this year.

​Investors remain cautious about the longer-term outlook for oil demand, particularly as China's economic recovery continues to disappoint. Shell's integrated model provides some insulation from crude price swings, but it cannot fully escape the sector's cyclical nature.

​The company's commitment to returning cash to shareholders remains intact, with the latest buyback programme reinforcing its capital allocation priorities. However, until oil prices find firmer footing, energy stocks are likely to remain under pressure.

​Standard Chartered and Haleon buck the downward trend

Standard Chartered gained ground after raising its outlook following better-than-expected quarterly profit, lifted by record wealth management income and solid global banking performance. The bank has benefited from higher interest rates and strong momentum in its Asian markets, where it generates the bulk of its revenue.

​The improved guidance suggests management is growing more confident about the operating environment, despite lingering concerns about commercial real estate exposure in China. Standard Chartered's diversified business model has proven resilient, with wealth management emerging as a key growth driver.

Haleon also delivered a positive update, with revenue beating forecasts thanks to strength in oral health products and robust regional growth in EMEA and Latin America. The consumer healthcare firm has carved out a solid position in over-the-counter medicines and personal care.

​Shawbrook IPO provides boost for London listings

​Specialist lender Shawbrook priced its London float at 370 pence per share, valuing the company at around £1.9 billion in a welcome boost for the city's listings market. The initial public offering (IPO) comes at a time when London has been losing ground to rival financial centres, making any successful flotation a positive signal.

​Shawbrook operates in niche lending markets including buy-to-let mortgages and asset finance, areas where it has built strong market positions. The company's focus on underserved segments has allowed it to generate attractive returns even in a challenging rate environment.

​The pricing suggests investors remain willing to back well-positioned financial services businesses, despite broader concerns about the UK economy. Shawbrook's IPO could encourage other companies to test the London market in the coming months.

​Vodafone expands cloud capabilities with German acquisition

​Vodafone announced plans to acquire Germany-based Skaylink for €175 million to strengthen its European digital and security services offering. The deal reflects the telecoms group's push to diversify revenue streams beyond traditional mobile and broadband services.

​Cloud and enterprise services represent a key growth opportunity for Vodafone as businesses accelerate digital transformation. Skaylink brings expertise in managed services and cybersecurity, areas where demand is growing rapidly across corporate customers.

​The acquisition fits Vodafone's strategy of building out higher-margin enterprise capabilities to offset pressure in consumer markets. Germany represents a crucial market for the group, and the Skaylink deal should enhance its competitive position.

​Investors will be watching to see how effectively Vodafone can integrate the acquisition and cross-sell services to its existing customer base. M&A execution will be critical to achieving the strategic benefits management has outlined.

​Gilts and political backdrop

​UK gilt yields rose about four basis points following the Federal Reserve's (Fed) rate cut and cautious guidance on future policy moves. The modest increase reflects market uncertainty about the pace of monetary easing on both sides of the Atlantic.

​Political attention in the UK turned to a licensing issue involving Chancellor Rachel Reeves, though the matter appears unlikely to have significant market implications. Gilt markets remain more focused on inflation data and Bank of England (BoE) policy signals.

​The rise in yields comes as investors recalibrate expectations for rate cuts in 2025. While inflation has moderated significantly, central banks are emphasising a cautious approach to further easing.

​European markets await ECB decision

​The broader European picture remained cautious ahead of the ECB's rate decision, with investors weighing mixed corporate earnings and limited details on the new Trump-Xi trade deal. The lack of concrete information about trade negotiations has left markets in a holding pattern.

​Technology earnings from the US have delivered mixed signals, with some companies flagging concern about AI-related spending while others remain bullish. This uncertainty has filtered through to European tech stocks and broader indices.

​The ECB is widely expected to cut rates, but the pace of future easing remains unclear. Eurozone growth has disappointed, but inflation remains sticky in certain areas, complicating the policy outlook.

​For traders looking to navigate these crosscurrents, understanding how to trade online across multiple asset classes can help identify opportunities as market conditions shift. European equities face a challenging backdrop, but selective opportunities continue to emerge.