LONDON: The UK’s FTSE 100 saw its steepest weekly drop since April on Friday, hurt by a sell-off in government bonds that pushed yields higher and dented risk appetite.
The blue-chip FTSE 100 index closed 0.32 percent higher on the day at 10,461.95 points, but fell 2.2 percent for the week. The midcap FTSE 250 also ended the week marginally lower, at 24,194.24.
Wild volatility in bond and currency markets kept investors on edge this week, but weaker-than-expected jobs data on Friday reduced odds of a near-term rate hike by the US Federal Reserve, reassuring investors.
Oil prices fell 2 percent after a sharp rise a day earlier following reports of talks in Europe on additional diesel and crude stock releases, easing concerns over tight global energy supplies.
Gilt yields dropped, with the benchmark 10-year gilt yield falling 4.09 basis points to 5.3624 percent after climbing to its highest since 2007 in the previous session.
The retreat in yields helped push rate-sensitive homebuilders marginally higher after a 5 percent drop a day earlier.
Still, banks continued to remain under pressure, with the index of UK lenders suffering its biggest weekly drop since April.
Among stocks, IG Group tumbled 22.6 percent after the online trading platform cut its 2026 revenue growth forecast, citing weak market conditions. Peers Plus 500 and CMC Markets declined 5.1 percent and 4 percent, respectively
Miner Glencore rose 3 percent after forecasting 2026 marketing profit above USD5 billion, surpassing long-term guidance after a near-record first half.
Pub chain J D Wetherspoon climbed 12.5 percent after reporting stronger sales growth since July, aided by sunny weather, while warning of rising costs and closures.