The FTSE 100 Index Closes 0.43% Lower

The FTSE 100 Index dropped -44 points or 0.43 percent on Friday to close at 10261 points. Losses were led by Fresnillo (-5.56%), Antofagasta (-5.50%) and Rolls-Royce (-5.18%). Offsetting the fall, top gainers were Hikma Pharmaceutical (2.48%), Imperial Brands (2.24%) and Bunzl (2.22%).

London’s FTSE 100 fell 0.5% to 10,254 on Friday, closing a volatile week down 0.2%, as investors digested disappointing UK GDP data and assessed the impact of escalating Middle East tensions on Bank of England policy ahead of next week’s meeting. Data from the ONS showed the UK economy stalled in January, missing expectations of 0.2% growth. Despite the sluggish growth, soaring energy prices tied to the US and Israel’s conflict with Iran have led investors to price in roughly an 80% chance of a 25-basis-point rate hike by year-end. For the March meeting, the Bank rate is expected to remain unchanged, with market attention focused on the vote split, where a 7-2 or 6-3 outcome is seen as most likely. Fresnillo (-5.8%), Rolls-Royce (-4.8%), Antofagasta (-4.7%), IMI (-4.7%) and Mondi (-4.5%) led the losses. Housebuilder Berkeley Group slid more than 2%, despite reaffirming its profit guidance for the year, noting that the Middle East conflict is “weighing heavily on risk sentiment.”

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.”