The UK’s FTSE 100 slipped on Friday as NatWest Group’s annual profit downgrade weighed on the banking index, although strong performances in commodity-linked stocks capped further downside.

The commodity-focused FTSE 100 was down 0.2% at 0712 GMT, while the mid-cap FTSE 250 was flat.

Shares of NatWest slumped 17% to the bottom of the FTSE 100 after the lender downgraded its full-year profit outlook, pinched by tighter competition for savers’ cash.

The broader banks index slipped 1.5% following the news of NatWest’s revised outlook.

FTSE 100 flat as Barclays drags, miners cap losses

Shares of heavyweight oil and gas advanced 1.5% as oil prices rose by $1 on reports that the U.S military struck Iranian targets in Syria raising concerns of escalation in the Israel-Hamas conflict, that could impact supply.

Precious metal miners gained 2.4% on higher gold prices as the Middle East conflict kept investors drawn towards the safe-haven asset.

Shares of British Airways-owner IAG rose 1.2% after the company beat forecasts with strong third-quarter profit, underpinned by robust summer demand.

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