UK's FTSE 100 Slips After Strong Weekly Gains Amid Abating Recession Fears in the US

The UK's FTSE 100 slipped after a five-day rise spurred by improving global investor sentiment due to reduced recession fears in the US. Despite the fall, the index was on track for its largest weekly gain since May. Meanwhile, British retail sales saw a 0.5% rise in July, aligned with expectations.

The UK's FTSE 100 index slipped on Friday after a strong five-day rise that contributed to a significant weekly gain for the benchmark stock index. The index was down 0.2% at 0716 GMT, continuing to reap benefits from the easing fears of a potential recession in the United States, which had bolstered global investor sentiment.

The FTSE 100 was on track for its biggest weekly increase since early May, driven by a recovering global risk appetite after an early August stocks rout triggered by U.S. slowdown concerns. U.S. retail sales data from Thursday helped to alleviate some recession worries in the world's largest economy, allowing the UK's benchmark index to reach levels last seen before August 2, when poor U.S. payroll data led to a global selloff in risk assets.

The FTSE 250 mid-cap index also fell 0.2%, with most sub-indexes in the negative territory. Homebuilders such as Persimmon led the losses, while travel and leisure stocks showed some resilience. Data revealed a 0.5% rise in British retail sales for July, meeting expectations and showing improvement after a weak June. British consumers are beginning to see relief from high inflation, following the Bank of England's recent interest rate cut.