LONDON: The UK’s benchmark FTSE 100 ended the week slightly lower led by losses in aerospace and defence stocks, while the pound had its best week since November after softer US data indicated the Federal Reserve might be close to cutting interest rates.
The internationally focussed FTSE 100 was down 0.4% on the day and logged its third straight week of losses, lagging its European and US counterparts, which rose to all-time highs on the back of technology stocks in the week.
A no-surprise annual budget statement, however, drove the midcap FTSE 250 index higher by 1.3% for the week. It was up 0.1% for the day.
The pound gained 0.18% to $1.2826, after hitting its highest since August against a weakening dollar after data showed US job growth accelerated in February but the unemployment rate rose and wage growth slowed.
“If we are genuinely seeing the unemployment rate having troughed and moving higher and wage growth slowing, then it obviously pushes the door for rate cuts open wider,” said Charles Hepworth, investment director at GAM Investments.
Aerospace and defence stocks led sectoral losses to snap a seven-session winning streak and fell 1.1%, driven by weakness in Melrose shares following its warning of ongoing supply chain challenges earlier this week.
Shares of real estate investment trusts and real estate were up 1.4% and 1.3%, respectively, helping limit the losses on the benchmark.
Among individual stocks, DS Smith climbed 5.2%, to lead gains on the benchmark, after Mondi reached an agreement in principle for an all-share offer to buy the company for 5.14 billion pounds ($6.57 billion). Mondi’s shares slipped 2.3%.
Informa edged 0.3% higher after the events organiser raised its earnings forecast for the current year and posted upbeat 2023 profit.
Meanwhile, Entain slipped 5.4% to the bottom of the FTSE 100, extending losses from previous session when the gambling group said regulatory changes would hurt its 2024 profits.
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