London's FTSE 100 retreats as financials weigh; Airtel Africa tumbles (updated)
UPDATE 1-London's FTSE 100 retreats as financials weigh; Airtel Africa tumbles Updates with closing prices
Sept 18 (Reuters) - London's FTSE 100 pulled back from a more than one-week high on Friday as financial stocks weighed, ending a week packed with economic data and central bank decisions.
The blue-chip FTSE 100 index .FTSE closed 1.4% lower at 10,659.13 points, logging a small weekly gain. The midcap FTSE 250 .FTMC finished 0.6% lower on the day, but still recorded its sharpest weekly rise since early August.
On Friday, financial stocks were the biggest drags on the index. Banks .FTNMX301010 lost 2.1%, with Lloyds LLOY.L and HSBC HSBA.L falling 2.9% and 1.6% respectively.
Telecom stocks .FTNMX151020 were the biggest percentage decliners with a 4.8% tumble. Airtel Africa AAF.L lost 11.3% after a report said its Airtel Money was considering downsizing its London IPO.
On the flip side, construction and materials stocks .FTNMX501010 rose 1.3%, led by gains in Galliford Try GFRD.L.
Data showed British consumers unexpectedly increased their shopping in August, although they cut fuel purchases after prices jumped.
The report comes a day after the Bank of England held interest rates steady but warned that policymakers might have to raise borrowing costs if the Iran war drags on.
Brokerages changed their rate calls following the decision, with Barclays joining J.P.Morgan in expecting a hike in November.
The central bank on Thursday also paused UK government bond sales for six months and halted long-dated gilt sales entirely, days after a global bond rout. Gilts steadied on Friday after last session's rally.
The US Federal Reserve hiked rates by 25 basis points this week, and the central bank reinforced its fight against inflation, sparking a rally across global markets on Thursday.
Among individual stocks, Softcat SCTS.L was among the top losers on the FTSE 250 index with a near 4% fall after the IT firm agreed to buy US-based GDT at an enterprise value of $1.05 billion.
Globally, the mood was also sour as elevated developed market bond yields pressured riskier assets. MKTS/GLOB
(Reporting by Purvi Agarwal and Johann M Cherian in Bengaluru; Editing by Alex Richardson)
((Purvi.Agarwal@thomsonreuters.com; johann.mcherian@thomsonreuters.com))