A 31.55-point rise on Monday was overwhelmed by a 122.90-point fall on Tuesday, leaving the FTSE 100 well below where it had started the week.

Monday 2 November 2026 ended on a modestly positive note for London's leading shares. The FTSE 100 added 31.55 points to close at 10,761.33, extending a winning streak that had by then reached four sessions. Twenty-four hours later, that progress looked very small indeed.

On Tuesday 3 November, the index fell 122.90 points, or 1.14%, to finish at 10,638.43. Put simply, the FTSE 100 lost nearly four times as many points in one day as it had gained the day before. Reuters described the move as the index's steepest one-day fall in a month, and it brought the four-day run of gains to an end.

The arithmetic of a reversal

The scale of the turnaround is clearest when the two sessions are placed side by side. Monday's rise of 31.55 points took the index from 10,729.78 at the end of the previous week to 10,761.33. Tuesday's fall of 122.90 points then carried it down to 10,638.43, which is 91.35 points below the level at which the week began.

In percentage terms, Monday's gain was a fraction of a per cent, while Tuesday's loss was 1.14%. Small daily gains can accumulate over a winning streak, but a single sharp Reversal can erase several days of progress at once. That asymmetry is a familiar feature of markets, where declines driven by a sudden shift in sentiment can be swift.

Monday: an index that held up despite oil

Monday's gain is notable because it came on a day of extreme moves in energy markets. Brent settled at $104.77, down $8.66 or 7.63%, while West Texas Intermediate settled at $96.46, down $7.66 or 7.36%. Reuters later linked the oil market's Volatility to investors weighing talks aimed at ending the wars in Ukraine and Iran. In general, a sharp fall in crude can ease Inflation concerns even as it weighs on energy producers, so its effect on a broad index can be mixed.

Sterling traded at about $1.3417 and around 83.53p per euro on Monday, according to Reuters. Against that backdrop, the FTSE 100 managed a small advance. In hindsight, that gain looks less like the start of something stronger and more like a pause before the mood shifted, although at the time it simply extended a run of steady, unspectacular gains.

Tuesday: several headwinds at once

The picture changed quickly on Tuesday. Early in Asian trade, Brent rose to about $105.25 after The Wall Street Journal, citing US officials, reported a US strike on Iran's Qeshm Island. Officials described the strikes as defensive, aimed at stopping Iran from attacking commercial ships in the Strait of Hormuz. Tim Waterer, chief market analyst at KCM Trade, said the report "added a degree of risk premium back into the oil price." Crude then slid about 2% over the day in volatile trading.

Meanwhile, London-specific pressures built up through the session:

Miners:The FTSE 350 basic resources index fell 2.6% as copper dropped to a multiweek low. Antofagasta (LSE:ANTO) lost 3.5% and Glencore (LSE:GLEN) 2.8%, while Anglo American (LSE:AAL) was about 2.8% lower at midday.

Banks:The FTSE 350 banks index fell 1.6% ahead of Thursday's Bank of England decision. HSBC (LSE:HSBA) fell 2.0% and was the largest approximate drag on the index in points terms.

Results:Associated British Foods (LSE:ABF) was among the notable fallers, closing 2.2% lower after forecasting lower annual profit. Coca-Cola Europacific Partners (LSE:CCEP) fell 2.1% after flagging cost pressures.

Industrials:Aerospace and defence shares were down about 1.2% at midday, with Rolls-Royce (LSE:RR.) and RELX (LSE:REL) each more than 1.6% lower, with no company-specific reason given.

The decline also accelerated as the day progressed. The index stood around 10,705 early in the session and near 10,687.72 by midday, before sliding further in the afternoon to its close.

There was no single trigger for the reversal, but the mood shifted towards caution for several reasons. The Bank of England is widely expected to raise rates by 25 basis points to 4% on Thursday 5 November, the first increase since August 2023, and money markets had fully priced four quarter-point hikes by next September, according to LSEG data cited by Reuters. Elevated oil prices have fuelled inflation fears, which helps explain why investors are so focused on Central Bank policy.

Tuesday was also US midterm election day, with all 435 House seats and 35 Senate seats contested. Reuters said a Democratic showing was considered priced in, and results were not known during the London session. Combined with company-specific disappointments, these factors appear to have outweighed the modest optimism seen on Monday.

There were exceptions. Hiscox (LSE:HSX) rose 2.9% after reporting a 9.5% rise in nine-month premiums, and the FTSE 250 fell a more limited 0.5% to 24,674.91, helped by a 6.6% gain in mid-cap Drax Group after a data centre Partnership with Brookfield Asset Management and Radiant.

Key dates to watch

Wednesday 4 November:Marks & Spencer half-year results, plus updates from Barratt Redrow, Coca-Cola HBC and Weir; eurozone inflation figures (expected 3.9%).

Thursday 5 November:Bank of England MPC decision, with a 25bp rise to 4% widely expected; BT, National Grid, Diageo and Next report.

Friday 6 November:IAG third-quarter results and the US October jobs report.

Thursday 12 November:ONS first quarterly GDP estimate for July to September 2026 (7:00am).

The bottom line

The FTSE 100's 122.90-point fall on Tuesday wiped out Monday's 31.55-point gain nearly four times over and left the index below where it began the week. A combination of weaker miners, nervous bank trading, disappointing company outlooks and lingering oil and rate uncertainty turned a modest rally into a sharp reversal. With a rate decision, major results and US jobs data still ahead, the rest of the week will show whether Tuesday was a one-off setback or the start of a more cautious phase.