British stocks end the week lower under weight of fragile US

After the close of markets, the main British stock indices posted weekly losses, as investors assessed tentative signs of a resumption of peace talks between the United States and Iran. Meanwhile, the Bank of England’s warning that global stock markets could come under pressure also weighed on investor sentiment.

The FTSE 100 index closed down 0.8% at 10,379.08 points, marking its first weekly decline in five weeks and erasing all gains made since the ceasefire announcement between the United States and Iran earlier in the month. The FTSE 250 mid-cap index also fell by 0.8%.

Iran’s Foreign Minister was expected to visit Islamabad on Friday to discuss possible measures to revive talks between the United States and Iran, according to Pakistani government sources cited by Reuters.

Investors remained cautious as crude oil prices held above $100 per barrel amidst ongoing uncertainty surrounding the Strait of Hormuz.

Sarah Breeden, the Deputy Governor of the Bank of England, told the BBC on Friday that global stock markets are likely to fall as current stock prices do not fully reflect the numerous risks facing the global economy.

Rising oil prices weighed on airline stocks, with Wizz Air falling by 3.3%. Major banks Barclays and HSBC declined by 0.9% and 1.3% respectively.

Pharmaceutical giants AstraZeneca and GSK both saw declines of 3.7% and 2.7% respectively, dragging the pharmaceutical sector down by 3%.

Retail sales in the UK increased by 0.7% in March, according to data released on Friday. Major retailers Tesco and Sainsbury warned this week that ongoing tensions in the Middle East could darken their profit outlooks.

Tech stocks gained 1%, with Computacenter jumping by 14.5% after the technology and services provider announced that it would surpass its annual profit forecasts.

Mondi plunged by 11.1%, ranking at the bottom of the FTSE 100 after the packaging company reported an increase in costs due to the conflict in Iran.