April 24 (Reuters) - UK's main stock indexes fell on Friday and were headed for weekly losses as hopes of a swift resolution to the Iran war faded, with the Bank of England's warning that global
UK stocks end week lower as fragile U.S.-Iran truce weighs; BoE flags risks
Market Performance and Key Drivers
Weekly Stock Index Movements
April 24 (Reuters) - UK's main stock indexes recorded weekly losses as investors assessed tentative signs of renewed U.S.-Iran peace talks, while a Bank of England warning that global stocks could face pressure also weighed on sentiment.
The blue-chip FTSE 100 index ended 0.8% lower to 10,379.08 points. The benchmark index recorded its first weekly drop in five, erasing all gains since the U.S.-Iran ceasefire announcement earlier this month. The midcap FTSE 250 slipped 0.8%.
Geopolitical Developments
U.S.-Iran Peace Talks
• Iran’s foreign minister was due in Islamabad on Friday to discuss possible steps to restart U.S.-Iran talks, Pakistani government sources said to Reuters.
Oil Prices and Market Sentiment
• Investors remained on edge as crude oil prices stayed above $100 a barrel, with uncertainty lingering over Strait of Hormuz.
Bank of England's Outlook
Global Stock Market Risks
• The Bank of England's Deputy Governor Sarah Breeden told the BBC on Friday that stock markets around the world are expected to fall as current share prices do not fully reflect the many risks facing the global economy.
Sector Highlights
Airlines and Banking
• Higher oil prices pressured airlines' shares, with Wizz Air dipping 3.3%.
• Heavyweight banks Barclays and HSBC fell 0.9% and 1.3% respectively.
Pharmaceuticals
• Pharma giant AstraZeneca slipped 3.7%, and peer GSK dropped 2.7%, sending the pharma sector 3% lower.
Retail Sector
• British retail sales rose by 0.7% in March, data showed on Friday. Major retailers Tesco and Sainsbury warned this week that persistent Mideast tensions are likely to cloud their earnings outlook.
• Retailers stocks rose 0.1%, among the few gainers on the benchmark.
Technology and Packaging
Tech Shares
• Tech shares gained 1%, with Computacenter surging 14.5% after the technology and services provider said it would beat annual profit forecasts.
Packaging Sector
• Mondi plunged 11.1%, landing at the bottom of the FTSE 100 after the packaging company flagged rising costs due to the Iran war.
Reporting Credits
(Reporting by Utkarsh Tushar Hathi; Editing by Diti Pujara and Leroy Leo)
