London’s FTSE 100 fell 0.4% on Friday, marking its sharpest drop in over two weeks, as spirits maker Diageo plunged 3.9% following a U.S. Surgeon General warning about alcohol and cancer. Despite the decline, the blue-chip index posted a 1.4% weekly gain, its best performance in six weeks.
The mid-cap FTSE 250 also slipped 0.2% but logged a 0.7% gain for the week, its strongest in four weeks. Energy shares provided some support, rising 1.5% as oil prices hovered near a two-month high.
Retail footfall dropped 2.2% in 2024, the largest decline since 2021, according to the British Retail Consortium. Meanwhile, Bank of England data showed sluggish consumer lending and lower-than-expected mortgage approvals, adding to concerns over the economy.
With Donald Trump’s potential tariff policies and ongoing tax increases under the UK budget, markets remain cautious, pricing in further rate cuts by the Bank of England in 2025.