FTSE 100 closes lower, dragged down by energy, banks; investors assess data

(Reuters) -Britain's FTSE 100 closed lower on Friday, dragged down by energy and bank stocks, while investors assessed domestic and U.S. economic data.

The blue-chip FTSE 100 was 0.1% lower on the day but ended the week marginally higher.

The domestically focused FTSE 250 closed 0.5% higher but logged its second straight weekly decline.

In the market, the homebuilders' index rose, led by Berkeley, up 3% after reaffirming its profit forecast for fiscal years 2026 and 2027.

Peers Vistry, Persimmon, Taylor Wimpey and Barratt Redrow also advanced.

Precious metal miners and industrial miners rose, tracking higher gold and copper prices, respectively.

Conversely, energy stocks fell 2.4% and weighed on the FTSE 100, with giants Shell and BP down 2.2% and 2.6%, respectively.

Heavyweight bank stocks fell and top lenders HSBC, NatWest, Barclays, and Lloyds were among the biggest laggards on the benchmark index.

Non-life insurers fell, dragged by Admiral Group's 2.9% decline, top loser on FTSE 100, after Peel Hunt downgraded the stock to "sell" from "reduce".

In other moves, Entain rose 3.3%, to top the FTSE 100, after Jefferies raised price target on the betting company.

Ashmore fell 4.3% after the asset manager reported lower-than-expected fee revenue and a dip in profit in its annual results.

Concerns over Britain's finances and the government's ability to keep them under control weighed on the markets earlier this week, briefly sending yields on long-dated government bonds to a 27-year high.

Investors continue to speculate about tax rises that could dampen economic growth, with Britain set to deliver its budget on November 26.

On the data front, retail sales rose more than expected in July.

In the U.S., data showed job growth weakened sharply in August and the unemployment rate rose to 4.3%, confirming labour market conditions were softening and sealing the case for an interest-rate cut from the Federal Reserve this month.

British Deputy Prime Minister Angela Rayner resigned after saying she deeply regretted her mistake of underpaying property tax on a new home.

(Reporting by Sukriti Gupta in Bengaluru; Editing by Shailesh Kuber)