FTSE 100 Stumbles Amid Geopolitical Tensions and Financial Sector Losses

The UK's FTSE 100 experienced a muted performance as financial sector losses overshadowed gains in energy stocks, culminating in the index's first weekly loss in a month due to geopolitical uncertainties. Despite energy stocks rising amid oil price rebounds, financials and airlines faced setbacks, impacting the market overall.

The UK's FTSE 100 remained subdued on Friday, with gains in energy stocks overshadowed by losses in heavyweight financials. The benchmark index faced its first weekly loss after three consecutive weeks of gains, a streak driven by recent geopolitical tensions.

By midday, the FTSE 100 was slightly up by 0.1% but had fallen over 0.7% for the week. In contrast, the FTSE 250 retreated from a recent four-year high, signaling the end of its five-week surge. Investor sentiment was notably affected by the U.S. President's tariff threats concerning Greenland, which added to existing geopolitical concerns despite later retractions.

While the energy index, including BP and Shell, rose by about 1.2% on rebounding oil prices, financial stocks pulled back, with several airlines also experiencing declines. Notably, Babcock's shares fell following retirement news of its CEO, and C&C Group suffered a steep drop amid profit forecast cuts. Meanwhile, a rise in UK retail sales, bolstered by online shopping, hinted at a potential economic recovery.

(With inputs from agencies.)