UK stocks were poised for weekly declines on Friday, as oil prices reached over five-month highs this week, significantly impacting risk appetite. Meanwhile, investors were analysing a variety of corporate earnings and economic data released throughout the week.
The blue-chip FTSE 100 index fell 0.5% to 10,670 points by 1020. The midcap FTSE 250 was up 0.1%, but was set for its sharpest weekly fall in nearly six weeks.
- Oil prices have reached their peak in more than five months, with Brent crude nearing $114 a barrel. This lifted energy shares, opening new tab 2%. Aerospace and defence shares, opening new tab dropped 4.1%, falling to their lowest levels since late May, with Rolls-Royce bottoming the FTSE 100 with a 6.4% slide.
- French rival Safran opens new tab dropped 8% on worries that a slowdown in aftermarket sales growth could continue into 2027, with airlines cutting capacity amid high fuel prices.
- Bank and healthcare sectors fell 1% and 1.7%, respectively, further bogging down the index.
- Rising oil prices have heightened inflation concerns within the global economy, as domestic data released this week indicates that price pressures escalated beyond expectations in September.
- An interest rate hike by the Bank of England in November is largely anticipated, with the data reinforcing the argument.
- Elevated oil prices, increasing speculation regarding rate hikes, and uncertainty surrounding the upcoming budget have positioned the indexes for weekly declines.
- British retail sales volumes decreased by 0.4% in September compared to August, a decline that exceeded the anticipated 0.1% drop projected by economists, according to data released on Friday.
- Separate data indicated that consumer confidence experienced a significant decline in October, marking its most pronounced monthly drop since the pandemic.
- Markets will be anticipating finance minister John Healey’s budget next week.
- Among individual movers, insurer Lancashire Holdings fell 4% after Barclays cut its rating to “underweight” from “equal weight”.
