FTSE 100 Slides on Weak UK Data and Middle East Tensions

2026-03-13 09:14 By Joana Ferreira 1 min. read

London’s FTSE 100 fell 0.5% to 10,260 on Friday, marking its third consecutive day of losses and putting it on track for a 0.2% decline for the week.

Investors weighed disappointing UK GDP data alongside the escalating conflict in the Middle East and its potential implications for Bank of England policy.

Data from the ONS showed the UK economy stalled in January, missing expectations for 0.2% growth, as services activity was flat and production fell 0.1%.

GDP rose just 0.2% over the three months to January, also slightly below forecasts of 0.3%.

Despite the weak growth, soaring energy prices linked to the US and Israel conflict with Iran have pushed investors to price in roughly an 80% probability of a 25-basis-point Bank of England rate hike by year-end.

On the stock-specific front, housebuilder Berkeley Group dropped nearly 3% despite reaffirming its profit guidance for the year, noting that the Middle East conflict is “weighing heavily on risk sentiment.”



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