UK stocks set for weekly gains as investors seek shelter in defensive sectors
EWU•Britain’s FTSE 100 was on track for its best week since early April, while the FTSE 250 rose 0.55% on Friday. Investors favored defensive sectors as AI-linked equities fell globally and bond yields dipped.
1. Indexes head for weekly gains
The FTSE 100 edged down 0.08% to 10,831.70 points by 10:12 GMT on Friday but was on track for its best week since early April. The FTSE 250 rose 0.55%.
2. Defensive sectors lead
Healthcare was set for a nearly 5% weekly gain despite falling more than 1% on Friday, while personal goods rose 7.2% for the week. Defence stocks BAE Systems, Melrose Industries and Babcock International gained between 1.5% and 3.7%.
3. Banks and yields in focus
Banks slipped after a report said finance minister John Healey was set to tax lenders in the budget later this month; NatWest Group and Lloyds Banking fell 2.2% each. Bank of England Governor Andrew Bailey said signs of second-round inflation were limited ahead of next week’s September inflation figures, while UK 10-year yields were heading for weekly declines after three straight weeks of gains.
