As of January 28, 2025, the FTSE 100 index has decreased by 21 points, closing at 8,379, reflecting ongoing pressures from a global tech sell-off that has significantly impacted major stocks, including Nvidia, which saw a sharp 14% drop following the rollout of China's DeepSeek AI model [3d811fc3]. This downturn is compounded by Ryanair's lowered passenger forecast due to ongoing issues with Boeing, further contributing to market instability [3d811fc3].
In the midst of this volatility, bond yields have fallen as investors seek safe havens, with UK 10 and 30-year gilt yields dropping to 4.58% and 5.14%, respectively, while the US 10-year rate decreased to 4.53% [3d811fc3]. The decline in yields indicates a shift in investor sentiment amidst fears of a financial crisis, which has also affected cryptocurrencies, with Bitcoin experiencing a decline [3d811fc3].
Despite the overall market decline, British American Tobacco shares rose over 4% after UBS upgraded its rating and raised the price target from 3,000p to 3,900p, highlighting pockets of resilience within the market [3d811fc3]. Analysts from Jefferies have noted that the pressure on data center builders to justify capital expenditures is mounting, as the implications of DeepSeek's AI model raise concerns for major tech firms [3d811fc3].
The FTSE 100's performance reflects a complex economic landscape, influenced by both domestic and international factors, as traders remain cautious ahead of upcoming economic data releases and central bank meetings [21e642cc]. The interplay of currency fluctuations, interest rates, and global tech trends continues to shape the investment climate in the UK [e695e2dc].