Global markets drop amid tech sell-off and China slowdown

Published: 14 November 2025. The English Chronicle Desk. The English Chronicle Online.

Global markets fell sharply after a sell-off in technology stocks and alarming economic data from China signalled a slump in investment, rattling investors worldwide. The FTSE 100 opened down 1.1%, shedding roughly 100 points as major banking stocks, including Barclays, Lloyds, and NatWest, fell between 3% and 3.5%. The index now stands at 9,705, retreating from its recent flirtation with the 10,000-point milestone.

The pound weakened against the dollar after UK chancellor Rachel Reeves abandoned plans to raise income taxes in the upcoming budget, compounding investor anxiety. Markets across Europe also opened lower, with the pan-European Stoxx 600 down 0.9%, France’s Cac 40 off 0.54%, and Germany’s Dax down nearly 0.9%.

Asian markets felt the ripple effect. Japan’s tech-heavy Nikkei dropped 1.8%, South Korea’s Kospi plunged 2.6%, and Australia’s market fell 1.5%. Wall Street had already experienced a difficult session, with Nvidia and other AI-focused companies tumbling amid valuation concerns. Nvidia, valued at $4.5tn (£3.4tn), led the sell-off, dropping 3.6% after Japan’s SoftBank sold its entire stake in the company. Other semiconductor firms, including SK Hynix, Samsung Electronics, and Taiwan Semiconductor Manufacturing Company, also fell between 1.8% and 6%.

The downturn comes amid fears of a slowing Chinese economy. Data from the National Bureau of Statistics revealed that fixed-asset investment fell 1.7% in the first ten months of the year, marking a record decline. China’s CSI 300 index lost 0.7%, Hong Kong’s Hang Seng fell 0.9%, and Taiwan’s Taiex dropped 1.4%.

Investors were also wary of the economic impact of the prolonged US federal government shutdown, which delayed key inflation and employment data releases. Analysts remain cautious about the possibility of a US rate cut next month, as several Federal Reserve officials have signalled a more conservative outlook.

Jim Reid, a Deutsche Bank analyst, said: “It’s been a volatile week, with relief over the end of the shutdown competing with concerns over AI stock valuations and uncertainty about the Fed’s next moves. The S&P 500 posted its worst day in over a month, with the probability of a December cut sharply reduced.”

Kyle Rodda, senior financial market analyst at Capital.com, added: “The weakness in Asian markets wasn’t as severe as in the US. The sell-off reflects tempered expectations for Fed rate cuts and waning momentum in the AI trade, amid concerns about returns. Chinese investment data, while weak, briefly raised hopes for stimulus, but sentiment remains fragile.”

The pound fell nearly 0.5% against the dollar to $1.31. Meanwhile, UK 30-year gilts rose 12 basis points as investors weighed the implications of Reeves’s tax U-turn on the financial outlook ahead of the 26 November budget.

Global investors now face heightened uncertainty, navigating the combined effects of technology sector volatility, a slowing Chinese economy, and geopolitical and policy developments in the UK and the US.