UK stocks set for weekly gains as investors seek shelter in defensive sectors
UK stocks set for weekly gains as investors seek shelter in defensive sectors For a Reuters live blog on US, UK and European stock markets, click LIVE/ or type LIVE/ in a news window
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 .FTSE 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 .FTMC 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 AZN.L and GSK GSK.L fell 1.8% and 1%, respectively, on the day
The personal goods sector .FTNMX402040 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 NWG.L and Lloyds Banking LLOY.L 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 .FTNMX502010 helped limit the losses on Friday: BAE Systems BAES.L, Melrose Industries MRON.L and Babcock International BAB.L rose between 1.5% and 3.7%
E-commerce group THG THG.L 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)