LONDON: British equities slipped on Friday, as renewed trade tensions after US President Donald Trump recommended a 50% tariff on goods from the European Union overshadowed positive UK economic data.
Sterling traded at its highest in over three years, adding pressure to the UK’s export-heavy benchmark share index.
The FTSE 100 slipped 0.2%, though it notched a second weekly gain.
However, the blue-chip index fell less sharply than its European peers as Britain is no longer an EU member following the Brexit referendum in 2016 and the country also clinched a limited bilateral trade deal with the United States earlier this month.
The domestically-focussed midcap index fell 0.4%, posting its first weekly decline in seven weeks.
Stocks came under pressure earlier this week as concerns over rising debt in the United States and a higher-than-expected UK government budget deficit dampened investor sentiment.
The benchmark 10-year gilt yield eased on Friday along with its US counterpart after surging earlier this week as the Republican-controlled US House of Representatives passed a sweeping tax and spending bill.
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