FTSE 100 Slips on Global Risk Off Sentiment as Schroders Surges on Nuveen Takeover

The FTSE 100 closed lower on Thursday as a global risk off mood weighed on equities, offsetting a sharp rally in Schroders after the asset manager agreed to a multibillion pound takeover by US firm Nuveen.

The blue chip index ended the session down 0.7 percent, retreating from a record high reached earlier in the day. The mid cap FTSE 250 also fell, closing 0.4 percent lower as investors reacted to weaker global market signals and fresh economic data from the UK.

Wall Street declined more than 1 percent during the session, pressured by renewed concerns over valuations in artificial intelligence related stocks. The broader retreat in global equities contributed to cautious sentiment in London.

Schroders was a standout performer, with shares surging as much as 28.5 percent to their highest level in over four years. The jump followed confirmation that Nuveen had agreed to acquire the UK based fund manager in a deal valued at approximately 9.9 billion pounds. The transaction ranks among the largest European asset management takeovers in recent years and marks a significant consolidation move in the sector.

Broader macroeconomic signals also influenced trading. Official figures showed that Britain’s economy expanded by just 0.1 percent in the fourth quarter, matching the previous quarter’s pace. The data reflected a slowdown in activity amid uncertainty ahead of Chancellor Rachel Reeves’ November budget.

Monthly GDP figures were revised downward, and business investment fell by nearly 3 percent during the quarter, driven largely by volatile transport related spending. The weakness reinforced market expectations that the Bank of England may cut interest rates again in March to support growth.

Other stocks also moved sharply. British American Tobacco slipped 0.4 percent after announcing job reductions alongside its full year results. Investors appeared cautious despite the company outlining cost saving measures.

Shares in pest control group Rentokil Initial dropped 6.8 percent after US peer Rollins reported fourth quarter revenue and earnings that missed Wall Street estimates. The results from the US company raised concerns about demand conditions in the sector, affecting sentiment toward UK listed peers.

Market analysts said the combination of global volatility, domestic economic softness and sector specific developments contributed to the mixed performance across London equities. While takeover activity provided a boost to individual names such as Schroders, broader uncertainty continued to shape investor behaviour.

As attention turns to upcoming central bank decisions and corporate earnings updates, traders will be watching for clearer signals on the direction of interest rates and global risk appetite.