London's FTSE 100 retreats as banks, energy weigh but eyes weekly rise

London’s FTSE 100 pulled back from an over one-week high on Friday, dragged by banks and energy stocks, but was set for gains in a week packed with economic data and central bank decisions.

The blue-chip FTSE 100 index fell 0.6% to 10,751.57 points by 0953 GMT, poised for its biggest weekly jump since late July. The midcap FTSE 250 was flat, but was on track for its sharpest weekly rise since early August.

On Friday, financial stocks were the biggest drags on the index. Banks lost 0.7%, with Lloyds and HSBC falling 1.2% and 0.6% respectively.

Energy companies were down 0.8%, as oil prices fell for a third straight session on easing concerns over Saudi supply disruptions.

Telecom stocks were the biggest percentage decliners with a 4.3% tumble. Airtel Africa lost 8.8% after a report said its Airtel Money was considering downsizing its London IPO.

On the flip side, precious metal miners rose 1.6%, as gold prices extended their rally.

Data showed British consumers unexpectedly increased their shopping in August, although they cut fuel purchases after prices jumped.

The report comes a day after the Bank of England held interest rates steady but warned that policymakers might have to go up if the Iran war drags on.

Brokerages changed their rate calls following the decision, with Barclays joining J.P.Morgan in expecting a hike in November.

The central bank on Thursday 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 last session’s rally.

The US Federal Reserve hiked rates by 25 basis points this week, and the central bank 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.