- UK retail sales fall 1.4% in May as consumers dine out
- Tesco down as sale growth slowed in first quarter
- FTSE 100 down 1.9%, FTSE 250 off 1%
June 18 (Reuters) - London's FTSE 100 index marked its worst session in over a month on Friday, dragged by weakness in financial and commodities-linked stocks, while data showed retail sales fell in May as Britons dined out more following a lifting of pandemic restrictions.
The blue-chip FTSE 100 (.FTSE) ended 2.0% down and shed 1.7% this week, snapping a win streak of three consecutive weeks in gains. Banking (.FTNMX301010) and life insurance (.FTNMX303010) stocks, down 2.7% and 2.5% respectively, were among the top drags.
British retail sales fell unexpectedly by 1.4% last month as a lifting of lockdown restrictions encouraged spending in restaurants rather than shops, with food stores suffering the biggest hit. read more
"When the UK government sort of became shifty on its tactics on easing lockdowns, especially on the travel side, it made people less sure of what's going on and they've just kept their hands in their pockets and not been spending so much," said Keith Temperton, equity sales trader at Forte Securities.
After the U.S. Federal Reserve's hawkish turn this week, all eyes are now on the Bank of England's meeting next week where it is expected to look through the temporary rise in inflation. read more
"Inflation is rising and unemployment is falling, but the Bank of England isn't going to do anything about raising interest rates until it's sure these aren't just transitory factors emanating from an economy that's gone from red to green," said Laith Khalaf, financial analyst at AJ Bell, in a note.
The domestically focused mid-cap index (.FTMC) fell 1% dragged by retailers, industrials and financial stocks.
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