FTSE 100 slips as rate-hike fears spike; NatWest tumbles

UK's FTSE 100 edged lower on Friday as investors gauged the prospects of further monetary policy tightening by the U.S. Federal Reserve, while NatWest fell to the bottom of the index after the British lender posted its full-year results. The blue-chip FTSE 100 lost 0.4% by 0822 GMT, but is set to post a weekly gain.

UK's FTSE 100 edged lower on Friday as investors gauged the prospects of further monetary policy tightening by the U.S. Federal Reserve, while NatWest fell to the bottom of the index after the British lender posted its full-year results.

The blue-chip FTSE 100 lost 0.4% by 0822 GMT, but is set to post a weekly gain. The index recorded its highest closing level on Thursday. U.S. indexes closed sharply lower on Thursday after unexpected strong inflation data and a drop in weekly jobless claims aided bets that the Fed will stick to its aggressive tightening path.

Shares of NatWest tumbled 8.2% despite reporting a 33% jump in its 2022 profit, dragging the banking sector down 1.2%. The more domestically focussed FTSE 250 midcap index fell 0.8%.

Meanwhile, data showed British retail sales volumes unexpectedly rose in monthly terms in January, but the overall picture remained one of weak demand from inflation-hit consumers.

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