Senior Market Analyst
The FTSE 100 gained 3% in its strongest weekly rise in six months, and FTSE 100 energy stocks did much of the lifting as crude prices jumped. WTI crude climbed around 10% and Brent crude also pushed sharply higher, rewarding an index weighted toward oil producers and other commodity names. Over the same stretch, the Nasdaq fell more than 4%, a reminder that the UK benchmark's light exposure to technology cuts both ways. With crude easing only slightly from its highs, the open question for traders is how far commodity strength keeps cushioning London's blue chips.
Fiona Cincotta, StoneX Senior Market Analyst, has spent more than 15 years trading and analyzing UK, European and U.S. markets, combining fundamental and technical analysis. She covers forex, equities, commodities and crypto assets with a focus on UK and European market themes, including how moves in commodity prices feed through to the FTSE 100's sector mix.
FTSE 100 energy stocks carried the index to a 3% weekly gain as WTI crude jumped around 10% and Brent crude pushed sharply higher. Crude prices have since eased back slightly, yet energy shares remain supported because oil is still elevated. "The FTSE obviously has a big lack of tech stocks, which sometimes has worked against it," Cincotta says, and in this move that same commodity-heavy mix worked in the index's favor. The upshot is that the FTSE 100's direction is tied more closely to crude and commodity prices than to the AI trade, which matters for anyone weighing UK against U.S. index exposure.
The FTSE 100's 3% weekly gain came as the Nasdaq dropped more than 4%, and the UK index also outperformed Germany's DAX, again helped by its limited technology exposure. In contrast to the U.S. benchmark, the FTSE 100 is weighted toward energy and commodity stocks, so the tech selloff weighed far less on London's blue chips. Earnings from Meta, Tesla, Netflix and memory chip companies keep U.S. tech and the AI trade in focus, which keeps that gap in sector exposure relevant for cross-asset traders. According to Cincotta, "if you're looking for a good hedge against the Nasdaq 100, then the FTSE does actually seem to be footing the bill quite well."
--- Written by Frédéric Guétin, StoneX Media Producer
--- Expert: Fiona Cincotta, StoneX Senior Market Analyst
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