London’s FTSE 100 ended the week slightly lower on Friday, easing after a series of record highs. Investors are now focused on next week’s UK inflation reading, which will shape expectations for the timing of the first interest rate cut.
The blue-chip FTSE 100 fell 0.2% on Friday and dropped 0.1% for the week, ending a three-week streak of gains. The midcap FTSE 250 index also declined, falling 0.4%.
On Friday, the personal goods sector led the declines, dropping 2.3%, followed by the automobile parts sector, which slipped 1.7%.
However, a 2.4% gain in precious metal miners, driven by rising gold prices and a surge in silver, helped offset some of the losses.
For the week, the industrial support services sector outperformed, finishing 3.3% higher, while the energy sector lagged, declining 4.1%.
Fiona Cincotta, senior market analyst at City Index, commented, “It’s more just pausing for breath after quite a spectacular rally across last week and this week.
We’re seeing consolidation as investors wait for the UK inflation data next week.”
The UK consumer price inflation data, expected on Wednesday, will be closely watched for indications about the timing of the Bank of England’s first interest rate cut.
Currently, traders are pricing in a 52.6% chance of a 25 basis point cut in June.
Among individual stocks, consumer healthcare firm Haleon fell 1.0% after drugmaker GSK sold its entire remaining stake in the company, raising £1.25 billion ($1.52 billion).
Auto Trader Group dropped 3.3% after Morgan Stanley cut its rating and target price on the stock.
Land Securities Group declined 2.6% despite reporting a smaller annual loss, as elevated interest rates continued to impact the valuation of its buildings.