Wall Street Sell-off, Card Factory Shares Plunge

Following losses of over 1% in the S&P 500 on Friday, Asian equities traded heavily on Monday as China’s property sector after state-backed developer China Vanke failed to secure approval to extend a bond payment, sending its shares sharply lower. The MSCI Asia-Pacific ex-Japan dropped 1.2% and South Korea’s KOSPI slid as much as 2.7% on signs that risk appetite has softened into year-end. European futures were modestly firmer, with FTSE, DAX and pan-European contracts up around 0.3–0.4%.

Equities

The FTSE 100 closed lower on Friday, ending the session down 0.6% after giving up earlier gains as a weaker mood from Wall Street spread across European markets late in the day. The index finished the week in negative territory for a second consecutive time. The FTSE 250 edged up 0.1% by the close, although it too retreated from stronger levels seen earlier in the session.

Among UK-listed companies, precious metal miners initially provided support after gold and silver prices rose earlier on Friday. The FTSE 350 precious metals index briefly touched a record high before paring gains to end the day 0.8% higher. Outside the mining sector, InterContinental Hotels Group closed 2% higher after Jefferies upgraded the Holiday Inn owner to “buy”, pointing to improved trading momentum and valuation support. Harbour Energy rose 3.3% by the close after announcing an agreement to acquire the subsidiaries of Waldorf Energy Partners and Waldorf Production for $170 million, expanding its upstream portfolio.

Card Factory shares plunged 27.4% on Friday after the retailer warned that annual profits would fall, citing weaker-than-expected UK store sales and subdued high street footfall heading into the festive period. WH Smith ended the session 2.1% lower after delaying the release of its preliminary annual results for a second time, adding to uncertainty around near-term performance. Earlier in the day, British GDP data showed the economy shrank in the three months to October, reinforcing expectations ahead of next week’s Bank of England meeting.

In the United States, equities fell sharply on Friday, with technology stocks under pressure. The S&P 500 closed down 1.07%, while the Nasdaq ended the session 1.69% lower at its weakest close since late November. The Dow Jones Industrial Average fell 0.51% by the close but still recorded a weekly gain.

Broadcom shares dropped 11.4% on Friday after the chipmaker warned of slimmer future margins, unsettling confidence around the profitability of large-scale artificial intelligence investment. Oracle fell a further 4.5%, extending losses from Thursday after issuing a weak financial forecast, despite denying reports that data centre projects linked to OpenAI had been delayed. Nvidia closed 3.3% lower, adding to pressure across the semiconductor sector, with the Philadelphia Semiconductor Index down 5.1% by the end of the session.

Lululemon shares jumped 9.6% after the close on Friday after the group raised its annual profit forecast and confirmed the departure of its chief executive. Costco ended the session little changed, despite reporting first-quarter revenue and profit above expectations as shoppers continued to spend on essentials ahead of the holiday season.

Forex & Commodities

The US dollar was softer more broadly, with the dollar index holding near 98.37 in early trading, close to levels last seen in October. Sterling eased earlier in the session, trading at $1.336, as markets awaited Wednesday’s UK inflation figures and Thursday’s Bank of England rate decision. Expectations remain finely balanced, with policymakers weighing recent easing in price pressures. The euro edged lower to $1.173, ahead of the European Central Bank’s meeting later this week.

Spot gold rose early on Monday to $4,344 per ounce, hovering near a seven-week high after Friday’s close. The metal benefited from the softer dollar ahead of Tuesday’s US non-farm payrolls report and Thursday’s inflation data, both delayed by the recent government shutdown. Silver traded higher at $63.23 per ounce.

Oil prices also moved up in morning trading after sharp losses last week. Brent crude was quoted at $61.42 a barrel and US crude at $57.72, as disruptions to Venezuelan exports following US sanctions offset persistent expectations of oversupply. Separately, Baker Hughes reported a further reduction in US drilling rigs, while geopolitical developments around Russia and Ukraine remained in focus for energy markets.