London's FTSE 100 slipped Friday as banks and energy stocks weighed, but the index is still on track for its biggest weekly jump since late July. The pullback follows a Bank of England rate hold, with Barclays joining J.P. Morgan in expecting a hike in November.
London's FTSE 100 fell 0.6% to 10,751.57 points by 0953 GMT on Friday, pulling back from an over one-week high. The blue-chip index is nevertheless poised for its biggest weekly jump since late July.
Banks, energy and telecoms lead the decline
Financial stocks were Friday's biggest drag: banks lost 0.7%, with Lloyds falling 1.2% and HSBC down 0.6%. Energy companies dropped 0.8% as oil prices fell for a third straight session on easing concerns over Saudi supply disruptions.
Telecom stocks were the sharpest percentage decliners, tumbling 4.3%. Airtel Africa lost 8.8% after a report said its Airtel Money was considering downsizing its London IPO. Precious metal miners bucked the trend, rising 1.6% as gold prices extended their rally.
Bank of England holds interest rates, flags Iran war risk
British consumers unexpectedly increased shopping in August, though they cut fuel purchases after prices jumped. The report comes a day after the Bank of England held rates steady but warned policymakers might have to raise rates if the Iran war drags on. Following the decision, Barclays joined J.P. Morgan in expecting a hike in November.
The central bank also paused UK government bond sales for six months on Thursday and halted long-dated gilt sales entirely, days after a global bond rout. Gilts steadied on Friday after the previous session's rally.
Fed hike sparks global rally
The US Federal Reserve raised rates by 25 basis points this week and reinforced its fight against inflation, sparking a rally across global markets on Thursday. Among individual stocks, Softcat bottomed the FTSE 250 with a 2.8% fall after the IT firm agreed to buy US-based GDT at an enterprise value of $1.05 billion. The midcap FTSE 250 was flat on Friday but on track for its sharpest weekly rise since early August.
Source: Economy News
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