UK stocks set for weekly gains as investors seek shelter in defensive sectors

By Reuters News

- Britain's main stock indexes were heading for weekly gains on Friday, as investors sought refuge in defensive sectors from a rout in AI-linked equities globally, while a dip in bond yields boosted risk sentiment ahead of next week's inflation figures.

The blue-chip FTSE 100 index .FTSE edged 0.08% lower to 10,831.70 points by 10:12 GMT, but was on track for its best week since early April, while the midcap FTSE 250 .FTMC rose 0.55%.

  • The defensive healthcare sector was set for a nearly 5% gain for the week, despite falling over 1% on Friday

  • Drugmakers AstraZeneca AZN.L and GSK GSK.L fell 1.8% and 1%, respectively, on the day

  • The personal goods sector .FTNMX402040 was up 7.2% for the week

  • Heavily weighted banks slipped on Friday after the Guardian reported British finance minister John Healey was set to tax the lenders in the budget later this month

  • "While big international banks in the UK are likely to be less affected, domestic names are in the firing line," said Kathleen Brooks, research director at XTB, in a note

  • NatWest Group NWG.L and Lloyds Banking LLOY.L were down 2.2% each

  • Bank of England Governor Andrew Bailey said signs of second-round inflation were limited ahead of next week's data release for September

  • Traders are pricing in four BoE rate hikes over the next 12 months, according to LSEG data

  • The UK's 10-year benchmark yields were heading for weekly declines after three straight weeks of gains

  • Defence stocks .FTNMX502010 helped limit the losses on Friday: BAE Systems BAES.L, Melrose Industries MRON.L and Babcock International BAB.L rose between 1.5% and 3.7%

  • E-commerce group THG THG.L rose 6.7%, extending a surge of 16% on Thursday after it raised its annual adjusted core profit forecast

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.
The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.
To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.
 

Cryptocurrency-related content is intended solely as news and market commentary. Crypto Derivatives are not available to Retail clients registered with Capital Com (UK) Ltd.