Session report, Friday 18 September 2026. Figures as at 12:00 BST, ahead of the 16:30 close.
Highlights
- The FTSE 100 traded at 10,743 by midday on Friday, down 73 points or 0.7%, after Thursday’s 1.2% rally to 10,816.14.
- Despite Friday’s pullback, the index remains on course for its biggest weekly gain since late July.
- Banks were the heaviest drag, falling 0.7% as a group, with Lloyds down 1.2% and HSBC down 0.6%.
- Energy stocks lost 0.8% as oil fell for a third consecutive session on easing concerns over Saudi supply disruption.
- Telecoms were the sharpest sector decliner at 4.3%, dragged by Airtel Africa’s 8.8% slide.
- The FTSE 250 diverged, edging up 0.1% to 24,367 and heading for its strongest week since early August.
- The Bank of England held Bank Rate at 3.75% on Thursday in a split 6 to 3 vote, with three members favouring a 25 basis point increase.
- The BoE also paused gilt sales for six months and halted long dated gilt sales entirely, following a global bond rout.
London’s blue chip index gave back part of Thursday’s advance on Friday, but the shape of the week matters more than the shape of the day. The FTSE 100 had climbed to a more than one week high on the back of central bank decisions on both sides of the Atlantic, and Friday’s retreat looks more like profit taking into the weekend than a change of direction.
Where the Index Stood
The index opened at 10,815.79 against Thursday’s close of 10,816.14, essentially flat, then slipped through the morning. By 10:00 BST it was quoted at 10,742.88, down 73.26 points or 0.68%, according to London Stock Exchange data. Reuters recorded 10,751.57 at 09:53 GMT, a fall of 0.6%. By midday the index sat at 10,743, still down roughly 73 points.
The intraday low of 10,689.55 came well below the opening level, though the index had recovered some ground by lunchtime. Even at those levels, the weekly performance remained comfortably positive.
The divergence with the mid cap index is the detail worth noting. The FTSE 250 rose 14 points to 24,367, a gain of 0.1%, and was tracking its sharpest weekly rise since early August. When selling pressure is concentrated in the blue chips while mid caps hold firm, it usually points to index level profit taking in a handful of large sectors rather than broad risk aversion.
What Dragged the Index Lower
| Sector / Stock | Move | Driver |
|---|---|---|
| Telecoms | -4.3% | Steepest sector decline of the session |
| Airtel Africa | -8.8% | Report that Airtel Money is considering downsizing its London IPO |
| Energy | -0.8% | Third straight session of falling oil prices |
| Banks | -0.7% | Profit taking after Thursday’s rate driven rally |
| Lloyds Banking Group | -1.2% | Heaviest faller among the major lenders |
| HSBC Holdings | -0.6% | Weakness across the banking sector |
| Softcat (FTSE 250) | -2.8% | Agreed acquisition of US based GDT at $1.05bn enterprise value |
Banks gave back Thursday’s gains
Financials were the single biggest drag. Banks had rallied hard on Thursday after the Bank of England’s hawkish split, which raised the prospect of rates staying higher for longer and supporting net interest margins. Friday’s move partly reversed that, with Lloyds and HSBC both retreating.
Energy followed crude lower
Oil fell for a third consecutive session as concerns over Saudi supply disruption eased. That took the energy sector down 0.8%. For context on how the underlying benchmark has moved through the week, the Brent crude oil price page tracks the live level.
The falling oil price cuts both ways. It hurts the index directly through Shell and BP, which carry substantial weight, but it also eases the inflation outlook that has been troubling the Bank of England, which is broadly supportive for equities elsewhere.
Telecoms took the sharpest hit
Telecoms fell 4.3%, the worst performing sector of the session, driven largely by Airtel Africa’s 8.8% slide after a report that Airtel Money was considering downsizing its planned London listing.
The Central Bank Backdrop
This was a week defined by monetary policy, and the FTSE’s weekly gain owes more to Wednesday and Thursday than to anything company specific.
The Bank of England held but split
The Monetary Policy Committee kept Bank Rate at 3.75% on Thursday, but the vote was 6 to 3, with three members pushing for a 25 basis point increase. UK inflation stood at 3.1% in August, and Governor Andrew Bailey signalled that policy might need to tighten if price pressures prove persistent, citing energy price risks linked to Middle East tensions.
The gilt market intervention
Alongside the rate decision, the Bank paused UK government bond sales for six months and halted long dated gilt sales entirely. That followed a global bond rout earlier in the week. Long dated gilt yields fell sharply in response, and gilts steadied on Friday after the previous session’s rally.
This combination is unusual and worth understanding. The rate decision leaned hawkish while the gilt decision leaned supportive. For equities, the second mattered more in the immediate term, because falling long yields lift valuations.
The Fed added to the move
The US Federal Reserve raised rates by 25 basis points during the week and reinforced its commitment to fighting inflation. Counterintuitively, this sparked a rally across global markets on Thursday, as the clarity removed uncertainty that had been weighing on sentiment. Nasdaq 100 futures were up 0.5% on Friday at 29,887.25, keeping Wall Street on course for weekly gains as falling oil eased inflation concerns.
What to Watch Into the Close
Three things will determine where the index finishes. Oil prices and the situation around the Strait of Hormuz remain the dominant external variable. Whether banks stabilise or extend losses will decide how much of Thursday’s rally survives. And Friday afternoon flows often reflect positioning ahead of the weekend rather than conviction, which tends to exaggerate moves in either direction.
Summary Keys
- The FTSE 100 traded around 10,743 at midday Friday, down 0.7%, retreating from a more than one week high reached on Thursday.
- Thursday’s close of 10,816.14 followed a 1.2% rally driven by central bank decisions.
- Banks and energy were the principal drags, with telecoms posting the steepest sector fall at 4.3%.
- The FTSE 250 rose slightly, suggesting the selling was concentrated in large caps rather than market wide.
- Both indices remained on track for strong weekly gains, the FTSE 100’s best since late July.
- The Bank of England held at 3.75% with three dissenters favouring a hike, while pausing gilt sales for six months.
- The Federal Reserve raised US rates by 25 basis points, which supported rather than unsettled global markets.
Frequently Asked Questions
Did the FTSE 100 actually have a bad week?
No. Despite Friday’s decline, the index was heading for its biggest weekly gain since late July. Thursday’s 1.2% rally more than offset Friday’s retreat, and the FTSE 250 was on course for its strongest week since early August. A single down session within a strongly positive week is normal profit taking.
Why did banks fall if the Bank of England signalled rates might rise?
Banks rallied on Thursday precisely because higher for longer rates support lending margins. Friday’s fall was largely a reversal of that move rather than a new negative. Markets frequently overshoot on central bank days and consolidate the following session, particularly ahead of a weekend.
Why did falling oil prices hurt the index when cheaper energy is usually good news?
Because Shell and BP carry substantial weight in the FTSE 100, so falling crude drags the index directly through those constituents. The wider economic benefit of cheaper energy, namely lower inflation, shows up across the broader market and over a longer horizon. It does not offset the immediate mechanical hit to the index from its two largest energy names.
