Market Jitters: British Stocks Close Flat Amid Economic Uncertainty

British stocks ended the week flat as mixed economic data left investors uncertain about the Bank of England's policy direction. Inflation, lackluster earnings, and U.S. trade threats weighed on the FTSE 100, while a positive retail sales report buoyed the pound temporarily. Business cutbacks and U.S. market concerns added to the cautious outlook.

British stocks leveled off on Friday, reflecting investor uncertainty following a week of mixed economic indicators. The indecisive mood leaves the Bank of England grappling with its economic strategy.

The FTSE 100 index slipped 0.04%, marking its fourth consecutive day in negative territory. The downturn was spurred by a larger-than-expected surge in British inflation, tepid corporate earnings, and persistent tariff threats from the U.S. Early gains in the pound, driven by surprisingly robust retail sales data, were erased later as the currency dipped 0.2% against the dollar.

Ahead of a planned tax hike by finance minister Rachel Reeves, businesses reported staffing cuts at the fastest rate in four years. In corporate news, Standard Chartered's stock soared due to a strong annual profit report and a generous share buyback plan, while the mining sector took a hit as gold prices stabilized.

(With inputs from agencies.)