Published by Global Banking & Finance Review®
Posted on December 8, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleUK's FTSE 100 declined as energy and financial shares lagged, with rising expectations for a US Fed rate cut amid key inflation data.
Dec 5 (Reuters) - UK's FTSE 100 edged lower on Friday, logging a sharp weekly decline, dragged down by energy and financial shares, even as investor expectations for a U.S. Federal Reserve rate cut next week grew after key U.S. inflation data.
The blue-chip FTSE 100 closed 0.5% lower, while the midcap FTSE 250 was little changed with both ending the week in the red.
Oil & gas stocks led the sell-off, tracking oil prices. Shell was down 1.4%, while fell 2.6%. Bank of America Global Research cut the latter's rating to "underperform" from "neutral".
Heavyweight banks dropped 1.2%, with Standard Chartered, Barclays and HSBC falling over 1% each.
Aerospace and defence shares fell, with BAE Systems and Rolls-Royce <RR.L> marginally down.
On the flip side, Personal goods shares were among top gainers, with Watches of Switzerland rising 2.6% after three brokerages raised their price targets. Burberry added 1.4%.
Chemicals shares gained 1%.
The investment banking and brokerage services index rose 1.1% with Investment firm 3i Group gaining 2.5%.
Among individual shares, AstraZeneca added 0.6%, snapping a six-day losing streak.
Trustpilot shares jumped 13.3% after a Morgan Stanley upgrade despite short-seller claims. The global review platform said it rejected allegations made by short-seller Grizzly Research.
Investor expectations for a Fed rate cut have increased since U.S. personal consumption expenditure data (PCE) - the Fed's preferred gauge of inflation - suggested a loss of momentum in the economy.
(Reporting by Utkarsh Tushar Hathi and Twesha Dikshit in Bengaluru; editing by Vijay Kishore and Mark Heinrich)
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, based on market capitalization. It is a key indicator of the performance of the UK stock market.
Oil and gas stocks are shares of companies involved in the exploration, extraction, and production of oil and natural gas. These stocks can be influenced by fluctuations in oil prices and global energy demand.
A rate cut refers to a reduction in the interest rate set by a central bank, such as the Federal Reserve. This is often done to stimulate economic growth by making borrowing cheaper.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Central banks monitor inflation to set monetary policy.
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