London's FTSE 100 retreats as financials weigh; Airtel Africa tumbles
EWU•Financials and telecoms lead declines
- On Friday, financial stocks were the biggest drags on the index. Banks .FTNMX301010 lost 2.1%, with Lloyds LLOY.L and HSBC HSBA.L falling 2.9% and 1.6% respectively.
- Telecom stocks .FTNMX151020 were the biggest percentage decliners with a 4.8% tumble. Airtel Africa AAF.L lost 11.3% after a report said its Airtel Money was considering downsizing its London IPO.
- On the flip side, construction and materials stocks .FTNMX501010 rose 1.3%, led by gains in Galliford Try GFRD.L.
FTSE 100 retreats from more than one-week high
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 .FTSE closed 1.4% lower at 10,659.13 points, logging a small weekly gain. The midcap FTSE 250 .FTMC finished 0.6% lower on the day, but still recorded its sharpest weekly rise since early August.
Data, central banks and bond yields pressure sentiment
- 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.
