LONDON: London’s FTSE 100 pulled back from a more than one-week high on Friday as financial stocks weighed, ending a week packed with economic data and central bank decisions.
The blue-chip FTSE 100 index closed 1.4 percent lower at 10,659.13 points, logging a small weekly gain. The midcap FTSE 250 finished 0.6 percent lower on the day, but still recorded its sharpest weekly rise since early August.
On Friday, financial stocks were the biggest drags on the index. Banks lost 2.1 percent, with Lloyds and HSBC falling 2.9 percent and 1.6 percent respectively.
Telecom stocks were the biggest percentage decliners with a 4.8 percent tumble. Airtel Africa lost 11.3 percent after a report said its Airtel Money was considering downsizing its London IPO.
On the flip side, construction and materials stocks rose 1.3 percent, led by gains in Galliford Try.
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 raise borrowing costs 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.