UK Shares Fall as AI Selloff Weighs; IAG Profit Declines

11:47 AM EST, 11/06/2026 (MT Newswires) -- The UK's FTSE 100 fell for a second consecutive day on Friday, closing 1.04% in the red, amid a global equity selloff driven by deteriorating sentiment toward artificial intelligence-related investments. In macroeconomic news, data from Lloyds showed that the monthly average house prices across the UK decreased 0.6% in October 2026, compared with a 0.1% fall in September 2026. Annual average house prices declined 1.2% in the reporting month, marking the largest fall since October 2023. "Housing demand is currently being tested by a challenging economic backdrop. Renewed inflationary pressures, driven in part by the conflict in the Middle East, are keeping borrowing costs high and adding to the squeeze on household finances, making some buyers understandably more cautious," said Lloyds Mortgages Director Andrew Asaam. "However, it's important to put October's fall in context. House prices have changed relatively little over the past couple of years, as the market has gradually adjusted to higher interest rates." On the corporate front, International Consolidated Airlines Group (IAG.L), d/b/a IAG, reported that its profit after tax declined 12.2% year over year to 1.23 billion euros, while revenue grew 4.5% to 9.74 billion euros. The British Airways owner's shares gained 1.43% at closing. "IAG's Q3 missed consensus, with operating profit before exceptional items of EUR1,726m (-16% yoy) against a median of EUR1,810m for consensus. The top line held up, led by the North Atlantic, but disruption costs and a heavier fuel bill ate the yield gains. Unlike its peers, IAG had no cargo cushion. FY26 margin guidance is maintained. As for the sector, the real debate is 2027, as hedging coverage thins out," said Baader Europe. Rightmove Plc (RMV.L) edged up 0.29% after updating its full-year 2026 outlook, including revenue growth of 6% to 7%, compared with its previous forecast range of 6% to 8%. "Revenue and operating profit guidance have been narrowed within prior ranges, while EPS growth guidance has been upgraded from >5% to at least 7% (VA cons. 7.9%), a clear demonstration that product-led growth and cost discipline are compounding through the cycle. We continue to believe that shares remain materially undervalued at current levels and retain our Outperform rating," RBC Capital Markets said in a quick take note, with a positive sentiment. Meanwhile, Coca-Cola HBC (CCH.L) clarified that its operations in Russia will continue to be "operated locally on a self-standing basis" amid speculation that the business could be seized by the Russian government. The consumer packaged goods and bottling company rose 3.11% at closing.