Oct 16 (Reuters) – Britain’s main stock indexes were heading for weekly gains on Friday, as investors sought refuge in defensive sectors from a rout in AI-linked equities globally, while a dip in bond yields boosted risk sentiment ahead of next week’s inflation figures.
The blue-chip FTSE 100 index edged 0.08% lower to 10,831.70 points by 10:12 GMT, but was on track for its best week since early April, while the midcap FTSE 250 rose 0.55%.
• The defensive healthcare sector was set for a nearly 5% gain for the week, despite falling over 1% on Friday
• Drugmakers AstraZeneca and GSK fell 1.8% and 1%, respectively, on the day
• The personal goods sector was up 7.2% for the week
• Heavily weighted banks slipped on Friday after the Guardian reported British finance minister John Healey was set to tax the lenders in the budget later this month
• “While big international banks in the UK are likely to be less affected, domestic names are in the firing line,” said Kathleen Brooks, research director at XTB, in a note
• NatWest Group and Lloyds Banking were down 2.2% each
• Bank of England Governor Andrew Bailey said signs of second-round inflation were limited ahead of next week’s data release for September
• Traders are pricing in four BoE rate hikes over the next 12 months, according to LSEG data
• The UK’s 10-year benchmark yields were heading for weekly declines after three straight weeks of gains
• Defence stocks helped limit the losses on Friday: BAE Systems, Melrose Industries and Babcock International rose between 1.5% and 3.7%
• E-commerce group THG rose 6.7%, extending a surge of 16% on Thursday after it raised its annual adjusted core profit forecast
(Reporting by Darshan Kumar in Bengaluru; Editing by Sahal Muhammed)
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