"The bullish mood on the build up to the (Brexit) deal being brokered and announced, has now been replaced with a more cautious outlook," CMC Markets' David Madden said. Traders eyed a vote on the new Brexit accord between Brussels and London, although analysts warned that progress made so far could be undone if lawmakers vote down the deal.
"It's a recipe for investors to execute only the most necessary moves in advance, before a possible 'manic Monday' in Saturday's wake," said City Index analyst Ken Odeluga. Paul O'Connor, head of the UK-based Multi-Asset Team at Janus Henderson, said markets will be very sensitive to the margin of victory if the deal is approved in Parliament.
"A big Tory win would probably boost UK assets. A narrow Conservative win could unsettle investors," O'Connor said. Outperforming the main index were some Brexit-sensitive stocks, including banks such as RBS and housebuilders, which saw volatile trading through the week.
Shares in consumer goods giants Unilever and Diageo lost about 1% each after downbeat earnings and forecast from their respective French peers Danone and Remy Cointreau and as sterling held steady. Cybersecurity firm Avast shone among mid-caps, jumping nearly 9% after its results. Elegant Hotels, which operates hotels and restaurants in Barbados, soared 57% to 110 pence, the price per share offered by Marriott to buy the AIM-listed company.