Stocks Slide as Financial Sector Leads UK Indices Downward

British stock indices were led lower due to financial shares being hit hard after a probe into Standard Chartered for sanctions violations was requested. The FTSE 100 ended down 0.4%, while the FTSE 250 fell 0.2%. Other sectors, such as defense and energy, faced varied pressures.

The FTSE 100 index saw a dip of 0.4% by Friday's close, primarily dragged down by financial shares. This downturn followed U.S. lawmaker Elise Stefanik's request for an investigation into Standard Chartered on sanctions violations, leading to a sharp 7.2% drop in the bank's shares.

Despite reaching an intraday high, the FTSE 100 ended its winning streak, though it still recorded a 0.5% weekly gain. The financial sector faced further setbacks, with a bank index dropping 1.9%, but still seeing an annual rise of 31.5%. Meanwhile, the defense sector fell 1.7%, driven by anticipation of a key meeting between U.S. and Russian leaders and prospects for a Ukraine peace deal.

Energy and industrial metals showed resilience, with the former rising 0.8% amidst potential easing of Russian oil sanctions. The latter gained 1.4% due to China's weak economic data hinting at possible stimulus. Bytes Technology emerged as a midcap standout, climbing 7.9% following a major share repurchase announcement.

(With inputs from agencies.)