London Daily

Focus on the big picture.
Tuesday, Sep 16, 2025

FTSE 100 slumps and gas prices surge as Russia crisis adds to cocktail of anxieties for markets

FTSE 100 slumps and gas prices surge as Russia crisis adds to cocktail of anxieties for markets

Market experts say the Russia-Ukraine tensions are starting to add to the wider volatility largely emanating from the United States where inflation is taking centre stage ahead of a key central bank meeting this week.

The FTSE 100 has seen £53bn wiped off its value amid a global markets sell-off as tensions between Russia and Ukraine add to a cocktail of investor worries.

Trading screens in London, Paris and Milan turned red while wholesale gas prices also rose sharply and Bitcoin plunged.

Britain's leading share index fell by 2.6%, or just under 197 points, to 7297 - leaving it below its level at the end of 2021 after giving up gains enjoyed during a brisk start to this year.


It was the FTSE 100's biggest one-day fall since November, when fears about the impact of the Omicron variant were taking hold.

The market volatility builds on heavy sell-offs that saw the US Nasdaq index come under particular pressure last week and endure its worst week of trading since March 2020.

That was largely down to fears of overinflated tech firm values and an accelerated pace of interest rate rises ahead as the Federal Reserve prepares to meet in the face of surging inflation.

The start of the new trading week saw a sell-off in Europe gather pace - building on losses on Friday linked to the US rate and tech rout.

The flight from risk also saw Bitcoin fall to below $33,000 for the first time since July last year - less than half the $69,000 all-time high reached last November - though it later clawed back some of the losses.

The pound came under pressure too and was a cent down on the dollar at just above $1.34 as the so-called safe haven US currency found support.


The FTSE 100's fall, led by mining and housebuilding stocks, built on the losses of 1.2% witnessed on Friday while the domestically-focused FTSE 250 was down by 3.6%.

Airlines were hard hit too amid the global tensions, despite the announcement of a further easing of travel testing requirements for UK arrivals - with British Airways owner International Airlines Group losing 6.5%.

Percentage falls in France, Germany and Italy on Monday were even sharper than in London, with stock indices down by around 4%.

Trading in New York initially also saw further falls to add to last week's sell-off - with the tech-heavy Nasdaq again seeing the worst of the pressure as it dived nearly 5% and the broader-based S&P 500 lost around 4%.

Later, Wall Street stocks fought back however and ended the day in positive territory.

Market analysts pointed to a growing influence from the Russia-Ukraine tensions.

It was evident in wholesale gas prices, which rose across Europe on Monday amid no sign that the stand-off was closer to a diplomatic solution.

NATO revealed it was bolstering its air and sea forces in the region while the UK joined the US in pulling out some of their embassy staff from Kyiv.

The UK wholesale gas contract for next day delivery was as much as 20% up on Monday - though at 228p per therm, it remains well down on the unprecedented highs above 400p witnessed last year.

Those additional costs are, without government intervention, tipped to raise the energy price cap by 50% for UK households from April.

Bjarne Schieldrop, commodities analyst at SEB, told Sky's Ian King Live that Europe was already paying a heavy price for the spat with Russia over Ukraine, as Moscow holds the key to wholesale costs through its 40% share of gas supply to the EU.

Asked whether Russia had been deliberately withholding supplies as a bargaining chip, he said of plunging gas pipeline volumes: "[The] increasing assumption these days is that this is sort of gaming from the Russian side with respect to Ukraine."

Meanwhile in the UK, the wider energy network is showing signs of strain often seen in the winter - with National Grid issuing a notice asking electricity suppliers to bump up capacity to make sure the system has enough spare "margin" in place, which was quickly withdrawn as the market responded.

It is the spectre of inflation that has harmed market sentiment - particularly in the US where the central bank's crisis era of support is being wound down.

All the major US indices have been tumbling from record highs this year as the pace of price increases threaten to dampen both consumer and corporate demand.

AJ Bell's investment director, Russ Mould, wrote: "The Federal Reserve is meeting on Wednesday amid expectations of a first interest rate hike in March and more increases to come this year than had previously been pencilled in.

"This has been signalled by a rise in bond yields. The hardening of monetary policy has negative implications for the valuations of tech stocks and they have seen big slumps in recent weeks.

"Perhaps Apple, Microsoft and Tesla can come to the rescue with some knockout numbers when they report this week. On the other hand, a series of disappointing updates from these technology titans would only undermine sentiment further.

"The shifting market landscape is further complicated by the increasingly noisy sabre rattling by Russia on the Ukrainian border.

"Escalation to a full armed conflict is likely to prompt market volatility and potentially a further surge in energy prices - only adding to the current inflationary pressures."

Newsletter

Related Articles

0:00
0:00
Close
Charlie Kirk's murder will break the left's hateful cancel tactics
Kash Patel erupts at ‘buffoon’ Sen. Adam Schiff over Russiagate: ‘You are the biggest fraud’
Homeland Security says Emmy speech ‘fanning the flames of hatred’ after Einbinder’s ‘F— ICE’ remark
Charlie Kirk’s Alleged Assassin Tyler Robinson Faces Death Penalty as Charges Formally Announced
Actor, director, environmentalist Robert Redford dies at 89
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
JD Vance Says There Is “No Unity” with Those Who Celebrate Charlie Kirk’s Killing, and he is right!
Trump sues the 'New York Times' for an astronomical sum of 15 billion dollars
Florida Hospital Welcomes Its Largest-Ever Baby: Annan, Nearly Fourteen Pounds at Birth
U.S. and Britain Poised to Finalize Over $10 Billion in High-Tech, Nuclear and Defense Deals During Trump State Visit
China Finds Nvidia Violated Antitrust Laws in Mellanox Deal, Deepens Trade Tensions with US
US Air Force Begins Modifications on Qatar-Donated Jet Amid Plans to Use It as Air Force One
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
Elon Musk Retakes Lead as World’s Richest After Brief Ellison Surge
U.S. and China Agree on Framework to Shift TikTok to American Ownership
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
Tens of Thousands of Young Chinese Get Up Every Morning and Go to Work Where They Do Nothing
The New Life of Novak Djokovic
The German Owner of Politico Mathias Döpfner Eyes Further U.S. Media Expansion After Axel Springer Restructuring
Suspect Arrested: Utah Man in Custody for Charlie Kirk’s Fatal Shooting
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
×