London stocks slide as miners and defence heavyweights drag the FTSE 100 into the red

10 October 2025

Branding is seen inside the LSEG (London Stock Exchange Group) headquarters in Paternoster Square, London, Britain, April 25, 2025. REUTERS/Toby Melville/File Photo

London’s FTSE 100 index closed sharply lower on October 10, falling about 0.9% to 9,427.47 points after U.S. President Donald Trump signaled plans to sharply raise tariffs on Chinese goods a move that rattled global markets in the final trading minutes. The sell-off erased much of the week’s prior gains, leaving the FTSE 100 down 0.67% for the week.

The drop was led by steep weakness in resource and industrial names, especially miners and defence stocks, which amplified pressure across the broader market. Precious-metal mining shares retreated after rallying earlier in the week, and falling oil prices dented energy plays, among the index’s largest weights. Aerospace and defence names also underperformed, with Rolls-Royce, BAE Systems, and Melrose all logging declines.

Trump’s tariff threats on Chinese imports and a potential cancellation of a meeting with President Xi Jinping over rare earths jolted investors, who viewed the rhetoric as escalation in the U.S. China trade standoff. The turmoil in commodity markets added to the gloom: oil and gas shares were among the worst performers, while miners of gold and industrial metals faltered.

Among individual names, Ibstock plunged after warning that its annual profits would fall below expectations, sliding roughly 4%. Meanwhile, Drift in the mining and resource sectors was broad: the recent run in base metals was reversed, and investors booked profits.

Despite the grim day, some segments showed resilience. Utilities and consumer staples pared losses, as their more defensive character offered a degree of shelter from the broader sell-off. Yet the losses in heavyweights overwhelmed those gains, tipping the index into negative territory.

This mood shift reflects the risk sensitivity underpinning markets at the moment. Bullish sentiment earlier in the week was stoked by optimism over central bank policies and hopes of easing trade tensions. But Trump’s renewed tariff warnings, particularly when deployed late in the session, touched a nerve.

Analysts suggest that the FTSE's exposure to cyclical sectors especially commodities, energy, and defence is making the index vulnerable in a more volatile global context. With weaker data flows due to the U.S. government shutdown, investors are more susceptible to pivots in policy rhetoric and global risk cues.

Yet there is some conditional optimism: base metal miners and utilities were still poised for weekly gains heading into Friday’s session, meaning if markets stabilize the FTSE may hold modest weekly upside. But that is a fragile position in the face of renewed macro headwinds and geopolitical uncertainty.

In sum, October 10 delivered a stark reminder of how quickly sentiment can swing. A week that saw the FTSE 100 reach highs is capped by sharp reversals, with miners and defence names serving as the fulcrum of downside. The week ahead may depend on clarity from Washington, commodity price stabilisation, or signs of capital rotation back into value or defensive sectors.