London close: Rightmove, IAG lead stocks lower amid macro concerns

London stocks fell for the second day on Friday, retreating further from Wednesday's record highs, as concerns about the US economy and potential tax hikes in the UK eroded market sentiment.

The FTSE 100 finished the day 0.6% lower at 9,675.71, led by heavy falls from blue chips Rightmove and IAG. The index is now sitting around 1% below Wednesday's all-time closing high of 9,777.08.

Increasing speculation that Rachel Reeves will break a manifesto pledge to raise income taxes in this month's Autumn Budget dampened the mood in London. According to The Times, the UK chancellor has told the Office for Budget Responsibility that income tax hikes are among several "major measures" planned for the Budget.

"Though we've already seen Chancellor Reeves' suggestions of a 'difficult budget', we expect to see more communications signalling her intentions," said analysts at TD Securities in a preview report on the week ahead.

However, they added: "Significant departures from expectations will need early, detailed airing to cushion the public and avoid market surprises. While we can't rule out tax hikes, we suspect the worst has been aired, so could be some dialling back in fears."

Meanwhile, Wall Street indices started the day firmly in negative territory as ongoing concerns about a potential AI bubble weighed on investors' minds, with valuations of many blue chip tech giants widely seen as "stretched".

While the US government shutdown – the longest on record – moves into its sixth week, the data blackout has continued, with the absence of non-farm payrolls on Friday. However, the non-governmental University of Michigan survey showed that US consumer confidence slumped more than expected in November, edging towards a record low.

In UK economic data, the latest figures from Halifax showed the biggest increase in house prices in October since the start of the year. Prices rose by 0.6% last month, reversing a 0.3% decline in September and comfortably ahead of forecasts for a 0.1% rise.

Rightmove and IAG drop 12%

Rightmove tumbled as the property portal said investments, mainly in AI, would lead to underlying operating growth slowing to 3% to 5% in 2026.

British Airways and Iberia owner IAG also fell sharply as it posted weaker-than-expected third-quarter operating profit and revenues and highlighted "some softness" in the North American market, despite saying that demand for travel "remains strong".

On the upside, FTSE 250 constituent ITV surged 17% as it confirmed it was in preliminary discussions regarding a possible sale of its broadcasting business to Sky for an enterprise value of £1.6bn.

Meanwhile, Hikma Pharmaceuticals was the top gainer on the top-tier index, having fallen sharply on Thursday after it downgraded medium-term guidance for its injectables unit.

Market Movers

FTSE 100 (UKX) 9,675.71 -0.62%
FTSE 250 (MCX) 21,773.39 -0.60%
techMARK (TASX) 5,461.42 -0.35%

FTSE 100 - Risers

Hikma Pharmaceuticals (HIK) 1,590.00p 4.47%
Coca-Cola Europacific Partners (DI) (CCEP) 6,950.00p 3.58%
WPP (WPP) 279.60p 3.44%
Diageo (DGE) 1,726.50p 2.77%
InterContinental Hotels Group (IHG) 9,738.00p 2.31%
Smith & Nephew (SN.) 1,266.50p 1.97%
Flutter Entertainment (DI) (FLTR) 16,670.00p 1.96%
Hiscox Limited (DI) (HSX) 1,374.00p 1.48%
Vodafone Group (VOD) 88.36p 1.38%
Coca-Cola HBC AG (CDI) (CCH) 3,558.00p 1.25%

FTSE 100 - Fallers

Rightmove (RMV) 573.60p -12.48%
International Consolidated Airlines Group SA (CDI) (IAG) 366.20p -11.57%
Auto Trader Group (AUTO) 751.20p -5.94%
Metlen Energy & Metals (MTLN) 41.20p -5.61%
Relx plc (REL) 3,194.00p -3.68%
Experian (EXPN) 3,405.00p -3.16%
IMI (IMI) 2,416.00p -3.05%
London Stock Exchange Group (LSEG) 9,270.00p -2.19%
Ashtead Group (AHT) 4,686.00p -2.17%
CRH (CDI) (CRH) 8,540.00p -2.11%

FTSE 250 - Risers

ITV (ITV) 78.95p 16.62%
Oxford Nanopore Technologies (ONT) 141.60p 5.91%
JTC (JTC) 1,354.00p 4.80%
Playtech (PTEC) 239.50p 2.79%
Anglo-Eastern Plantations (AEP) 1,310.00p 2.75%
Johnson Service Group (JSG) 135.40p 1.80%
Ithaca Energy (ITH) 230.00p 1.77%
Victrex plc (VCT) 629.00p 1.62%
Syncona Limited NPV (SYNC) 100.40p 1.41%
Empiric Student Property (ESP) 78.90p 1.28%

FTSE 250 - Fallers

Baltic Classifieds Group (BCG) 264.00p -8.17%
Me Group International (MEGP) 175.00p -7.70%
Ceres Power Holdings (CWR) 354.80p -5.89%
Trainline (TRN) 258.60p -3.94%
THG (THG) 43.10p -3.84%
Trustpilot Group (TRST) 183.80p -3.57%
Dr. Martens (DOCS) 83.85p -3.45%
Keller Group (KLR) 1,468.00p -3.42%
Allianz Technology Trust (ATT) 508.00p -3.05%
Bluefield Solar Income Fund Limited (BSIF) 73.00p -2.93%