LONDON: London’s benchmark index hit a two-week low on Friday, weighed down by losses in heavyweight lenders that joined a global selloff in financial stocks on concerns over the health of US regional banks.
The benchmark FTSE 100 ended down 0.9 percent at 9,353 points. Though off its session lows, the index still concluded its second consecutive week in the red.
The domestically focused FTSE 250 dropped 1 percent to 21,783, barely changed for the week.
The banks index shed 3.1 percent. HSBC, Barclays and Standard Chartered fell 3 percent, 5.4 percent and 3.2 percent respectively.
Concern about credit quality in US regional banks rippled through markets on Friday, reviving memories of the crisis of confidence that shook sentiment just over two years ago.
Wall Street’s losses were contained after US President Donald Trump said his proposed 100 percent tariff on goods from China would not be sustainable, easing investor nerves after tensions flared between the two sides over Beijing’s move to tighten control over rare earth exports.
Britain’s economy returned to growth in August, data on Thursday showed. Separately, the International Monetary Fund this week said Britain’s economy is on course for the second-fastest growth among the Group of Seven nations in 2025 after the United States.
Defensive sectors were among those in positive territory with personal goods, beverages, personal care, drug & grocery and utilities , reflecting the cautious mood among investors.
The aerospace and defense index dropped 3.5 percent, tracking losses in European counterparts.
Among other movers, precious metal miner Fresnillo slumped 11 percent as gold and platinum prices tumbled.