FTSE 100 Hits One-Month Low Amid Central Bank Decisions

Britain's FTSE 100 reached a one-month low, marking the most significant drop since October 2023. Financial and energy sectors saw declines, while real estate and precious metals gained. Market shifts were influenced by U.S. policy concerns and central bank decisions, with slight relief from minor domestic budget and retail news.

The FTSE 100, Britain's leading stock market index, recorded its sharpest weekly decline since October 2023, closing at a one-month low on Friday. The decline occurred amid various central bank policy decisions impacting global financial markets.

Notably, financial companies had a heavy impact on the benchmark index, with banks and non-life insurers experiencing significant setbacks. The energy sector also saw declines, mirroring falling oil prices driven by demand growth concerns. Conversely, the real estate investment trusts and precious metal miners saw gains due to rising bullion prices.

While British equities mirrored the initial downturn of European counterparts, exacerbated by U.S. policy uncertainty, a benign U.S. inflation report and lower-than-anticipated domestic retail sales helped curb further losses. Despite a minor budget deficit boost aiding finance minister Rachel Reeves, a hawkish Fed outlook and Bank of England's rate hold led to a weaker market close.

(With inputs from agencies.)