FX.co ★ FTSE 100 Trades Lower

The FTSE 100 fell more than 0.5% on Friday, reversing two consecutive sessions of modest gains, as renewed inflation worries, rising oil prices and mounting political uncertainty in the UK weighed on sentiment. Investors are increasingly focused on the prospect of a leadership challenge following Andy Burnham’s move closer to a potential bid for prime minister, with MP Josh Simons indicating he would stand aside for the Manchester mayor.

Mining and banking stocks led the declines. Among miners, Fresnillo and Antofagasta both dropped more than 5%, Anglo American slid 4%, and Endeavour lost 2.8%, while Glencore and Rio Tinto each fell by more than 2%. In the banking sector, HSBC eased 1.1%, while Lloyds, Barclays and NatWest all declined by more than 2%, and Standard Chartered slipped 0.9%.

Centrica also weakened, falling 2% after agreeing to pay £20 million to settle an Ofgem investigation into allegations that British Gas forced the installation of prepayment meters on financially vulnerable customers.