The UK’s main stock indexes recorded weekly losses as investors assessed tentative signs of renewed U.S.-Iran peace talks, while a Bank of England warning that global stocks could face pressure also weighed on sentiment. The blue-chip FTSE 100 index ended 0.8% lower at 10,379.08 points, marking its first weekly drop in five and erasing all gains since the U.S.-Iran ceasefire announcement earlier this month. The midcap FTSE 250 similarly slipped 0.8%.
Bank of England Deputy Governor Sarah Breeden told the BBC on Friday that stock markets around the world are expected to fall, as current share prices do not fully reflect the many risks facing the global economy. Geopolitical tensions in the Middle East remained a key concern, with crude oil prices staying above $100 a barrel and uncertainty lingering over the Strait of Hormuz. Iran’s foreign minister was reportedly in Islamabad on Friday to discuss possible steps to restart U.S.-Iran talks. Higher oil prices pressured airline shares, with Wizz Air dipping 3.3%, while heavyweight banks Barclays and HSBC fell 0.9% and 1.3% respectively. Pharma giants AstraZeneca and GSK also slipped, sending the broader pharma sector 3% lower.
In mixed market activity, British retail sales rose by 0.7% in March, although major retailers Tesco and Sainsbury warned that persistent Mideast tensions are likely to cloud their earnings outlook. Retailer stocks still managed a modest 0.1% gain, among the few sectors to rise on the benchmark. Technology shares also bucked the trend, gaining 1%, with Computacenter surging 14.5% after the technology and services provider said it would beat annual profit forecasts. Conversely, packaging company Mondi plunged 11.1%, landing at the bottom of the FTSE 100 after flagging rising costs due to the Iran conflict.
