UK’s main stock index was lower on Friday, dragged down by energy and mining shares, as investors awaited a US jobs report that could determine the extent of expected interest rate cuts by the Federal Reserve.
The blue-chip index FTSE 100 fell 0.4% as of 0710 GMT, on track for its sixth straight daily decline and down 1.8% for the week, its steepest weekly loss since mid January.
However, it has fared better than its benchmark European and US peers on a weekly basis, with the STOXX 600 and the S&P 500 down around 3% each.
The domestically focused mid-cap FTSE 250 was up 0.1%, but set for its biggest weekly fall since late July.
Industrial metal miners and energy were among the worst hit sectors, while precious metal miners led gains tracking higher gold prices.
For the week, industrial metal miners and chemical stocks were the biggest laggards, while the real estate sector was the top performer.
UK shares kicked off September on a dour note, after recent weak economic data brought back concerns of a likely US economic slowdown, which had sparked a sharp selloff in risky assets globally in early August.
The US non-farm payrolls report, later in the day, will set expectations around the quantum and pace of US rate cuts ahead of this month’s Fed policy decision.
UK’s FTSE 100 hits three-week low as US economic worries dent risk sentiment
While the debate is on whether the US central bank will deliver a 25- or 50-basis point cut to rekindle growth, LSEG data shows the European Central Bank is poised to cut rates and the Bank of England is likely to hold this month.
Meanwhile, data showed British house prices rose last month at the fastest annual pace since late 2022, while a report showed the nation needs an additional one trillion pounds in investment in the next decade to grow the economy.
Comments
Comments are closed.