FX.co ★ FTSE 100 Set to End Week Lower

The FTSE 100 edged lower on Friday, extending Thursday’s 0.3% decline and setting the index on course for a weekly loss of more than 1.5%. Rolls-Royce shares slipped about 2.5% amid reports the company is close to securing up to £200 million in UK government subsidies to develop a new short-haul aircraft engine. AstraZeneca fell more than 1%, while GSK was down over 0.5%.

By contrast, energy majors outperformed: Shell gained 1.2% and BP rose 1.8% as Brent crude headed for a third consecutive weekly advance, supported by escalating attacks on Saudi Arabia and mounting worries over potential supply disruptions.

On the macroeconomic front, UK consumer sentiment weakened sharply. The GfK consumer confidence index dropped 11 points to -24, its steepest monthly fall since the pandemic. September retail sales also undershot expectations, declining 0.4% month-on-month including fuel and 0.7% excluding fuel. However, the impact of the disappointing data was partially cushioned by upward revisions to August’s figures.