London stocks rise, but set for weekly loss as slowdown woes mount

Oil and defensive stocks lifted UK's FTSE 100 on Friday, although the index was set for a weekly loss as worries about aggressive interest rate hikes and a sharp slowdown in China's economy weighed on investors' risk appetite. Still, both benchmarks were poised for weekly losses.

Oil and defensive stocks lifted UK's FTSE 100 on Friday, although the index was set for a weekly loss as worries about aggressive interest rate hikes and a sharp slowdown in China's economy weighed on investors' risk appetite. The blue-chip FTSE 100 added 0.6%, with gains for oil majors and defensive stocks such as British American Tobacco and AstraZeneca supporting the index.

The domestically focussed FTSE 250 index also edged 0.6% higher. Still, both benchmarks were poised for weekly losses. London-listed shares of Rio Tinto slipped 1.7% after the global miner warned that labor shortages and soaring inflation would impact its earnings in the second half.

Peers Anglo American and Glencore fell 1.9% and 0.7%, respectively. Burberry dropped 4.9% after the luxury brand said its first-quarter comparable store sales rose by 1%, limited by COVID-19 lockdowns in China, its biggest market.

Low-cost carrier EasyJet dropped 2.9% after J.P. Morgan downgraded the stock to "underweight". Tonic maker Fevertree fell 31.5% after it lowered its annual profit forecast, citing worsening cost pressures and logistical issues.