FTSE 100 Falters as Consumer Staples and Healthcare Stocks Drag Market Down

Britain's FTSE 100 index closed lower on Friday due to declines in consumer staples and healthcare stocks, despite some support from rising gold prices and the defence sector. The UK economy reported no growth in July, raising concerns over future economic prospects amid persistent inflation and budget uncertainties.

Britain's FTSE 100 closed lower on Friday, reversing earlier gains as consumer staples and healthcare stocks dragged the index down by 0.2%. Despite this dip, the index marked its second consecutive weekly gain.

Domestically, the mid-cap index fell by 0.3%, still managing a weekly rise. Key drivers included hopes for a US Federal Reserve interest rate cut, surging gold prices, and a rally in the defence sector. However, disappointing economic data showed no growth in July for Britain's economy, aligning with expectations of a slower start to the second half of 2025.

Major healthcare and consumer staples stocks saw significant declines, while the aerospace and defence sector experienced notable gains. Industrial miners benefited from rising copper prices. Elsewhere, Ocado shares fell sharply, and JTC soared to a record high amid private equity talks.

(With inputs from agencies.)