FX.co ★ FTSE 100 Falls 2%

The FTSE 100 dropped 2% on Friday as investors reacted to a combination of rising inflation, uncertainty over the interest rate outlook, and growing political tensions in the UK. Domestic markets lagged global peers amid speculation that Greater Manchester Mayor Andy Burnham could mount a leadership challenge in Westminster, further unsettling the political backdrop.

Mining and banking stocks led the decline. Among miners, Fresnillo and Antofagasta each sank more than 10%, Anglo American slid 6.3%, and Endeavour fell 7.3%, while Glencore and Rio Tinto both lost over 3.5%. Banks were also under heavy selling pressure: HSBC shed 2.5%, Lloyds and Barclays dropped more than 3%, and NatWest and Standard Chartered each declined by more than 1.5%. Centrica tumbled 7% after agreeing to pay £20 million to settle an Ofgem investigation into allegations that British Gas forced financially vulnerable customers onto prepayment meters.