FX.co ★ FTSE 100 Halts Yearly Rally

The FTSE 100 experienced a downturn on Friday, concluding the session with a decline and marking a roughly 1% decrease for the week, thus ending its positive streak for the year. The slide was primarily due to losses in financial stocks, which overshadowed gains in other sectors. Notably, shares of HSBC, Barclays, and Standard Chartered dropped by over 1%, while Lloyds Banking Group and NatWest also saw declines, significantly impacting the index. In contrast, the energy sector offered a cushion, with Shell and BP gaining 0.6% and 1.6%, respectively, as oil prices rebounded after a sharp fall on Thursday. Additionally, the mining sector performed well, with Fresnillo and Endeavour advancing approximately 2%, buoyed by sustained high gold prices. Economic data revealed a positive picture; the S&P Global Purchasing Managers' Index (PMI) indicated that UK private sector activity expanded at its fastest rate since April 2024. Retail sales also exceeded expectations, rising 0.4% in December. Moreover, consumer confidence improved, reaching its highest point since August 2024.