UK Stocks Waver Amid Economic Challenges and Rate Hopes

UK stocks experienced minor declines as the FTSE 100 pulled back from record highs. The pound's recovery and anticipation of a U.S. jobs report added to investor caution. Legal & General shares soared on the sale of its U.S. business. The Bank of England's dovish outlook reaffirmed upcoming rate cuts amid inflation concerns.

UK stocks tumbled on Friday, with the FTSE 100 slipping 0.2% from its record high amidst a recovering pound and investor caution ahead of a key U.S. jobs report.

Legal & General's shares surged by 5.4% following the company's announcement of the sale of its U.S. protection business to Meiji Yasuda for $2.3 billion, which also saw the Japanese firm acquiring a 5% stake in L&G.

The Bank of England's revised forecasts highlight lingering economic concerns, with expectations of further rate cuts this year to cope with stubborn inflation, forecasted to nearly double the target of 2%.