Key facts
- London's FTSE 100 index fell 0.6% on Friday, retreating from a one-week high.
- The index was poised for its largest weekly gain since late July.
- Financial stocks, including banks like Lloyds and HSBC, were the biggest drags.
- Energy stocks declined as oil prices fell for a third consecutive session.
- Telecom stocks experienced the largest percentage decline, falling 4.3%.
- Precious metal miners advanced as gold prices continued to rally.
London's FTSE 100 index retreated from an over one-week high on Friday, weighed down by declines in financial and energy stocks, though it was still set for weekly gains. The blue-chip index fell 0.6% by 0953 GMT, with the midcap FTSE 250 remaining flat but on track for its sharpest weekly rise since early August.
Financial stocks were the primary drag on Friday, with banks losing 0.7%. Lloyds and HSBC shares fell 1.2% and 0.6% respectively. Energy companies were down 0.8% as oil prices declined for a third consecutive session amid easing concerns over Saudi supply disruptions.
Telecom stocks saw the largest percentage drop, tumbling 4.3%, with Airtel Africa losing 8.8% after a report indicated its Airtel Money unit was considering downsizing its London IPO. Conversely, precious metal miners rose 1.6% as gold prices extended their rally.
Data released on Friday showed an unexpected increase in British consumer shopping in August, despite a cut in fuel purchases following price jumps. This report followed the Bank of England's decision on Thursday to hold interest rates steady, though policymakers warned of potential future hikes if the Iran war escalates. Following the Bank of England's decision, brokerages including Barclays revised their rate expectations, with Barclays joining J.P.Morgan in anticipating a November hike. The central bank also paused UK government bond sales for six months and halted long-dated gilt sales entirely, days after a global bond rout. Gilts steadied on Friday after the previous session's rally.
In other market news, the US Federal Reserve increased rates by 25 basis points this week and reinforced its commitment to fighting inflation, which spurred a rally across global markets on Thursday. Individual stock news included Softcat, which fell 2.8% after agreeing to acquire US-based GDT for an enterprise value of $1.05 billion.