Concerns over U.S. tax plan continue to weigh
U.K. stocks slipped Friday, with retailers among those losing ground, as the London gauge of blue-chip stocks moved toward its biggest weekly fall in nearly two months.
What markets are doing: The FTSE 100 index was down 0.1% at 7,478.83, with utilities, industrials, consumer goods and financial sectors on the decline. But the basic materials, technology, and oil and gas groups were rising. On Thursday, the benchmark fell 0.6% (http://www.marketwatch.com/story/ftse-100-declines-as-burberry-shares-sink-house-builders-drop-2017-11-09).
For the week, the London benchmark was on track for a 1% loss. That would be the biggest weekly decline since mid-September, according to FactSet data.
The pound traded at $1.3140, little changed from $1.3137 late Thursday in New York. Against the euro , sterling bought EUR1.1292, slightly higher than EUR1.1284.
The yield on the 10-year gilt rose 4 basis points to 1.30%.
Read:Is British leader Theresa May on her way out? Why that's the fear -- and why it matters (http://www.marketwatch.com/story/is-british-leader-theresa-may-on-her-way-out-why-thats-the-fear-and-why-it-matters-2017-11-09)
Retail pain continues: A tough week for retail stocks continued Friday, after the release of research that showed British consumer spending is slowing.
Read:Weak British retail sales flash 'warning sign' for crucial shopping season (http://www.marketwatch.com/story/weak-british-retail-sales-flash-warning-sign-for-crucial-shopping-season-2017-11-07)
Burberry Group PLC shares (BRBY.LN) (BRBY.LN) lost 3%. That drop adds to Thursday's tumble of 10% for the luxury goods maker after it warned that it doesn't expect sales growth until fiscal 2021 (http://www.marketwatch.com/story/burberry-shares-drop-as-it-warns-on-sales-2017-11-09). The company also said it will close stores as it sharpens its focus on the high-end market.
Shares of retailer Next PLC (NXT.LN) and Marks & Spencer Group (MKS.LN) were down 0.9% and 1.2%, respectively. DIY retailer Kingfisher PLC (KGF.LN) was off 0.3%.
Kingfisher and M&S shares were looking at weekly losses of more 2% each, and Next was in line for a fall of more than 3%.
What strategists are saying: "The FTSE has struggled in the last couple of days, with a volatile commodity sector and a flagging set of retail stocks dragging the UK index back below 7,500," said Connor Campbell, financial analyst at Spreadex.
What's moving markets: Concerns about a possible delay to tax cuts in the U.S. lingered. Those worries helped push equity markets in Asia lower Friday, following a selloff in the U.S. on Thursday.
The Senate Finance Committee on Thursday released its version of a tax plan (http://www.marketwatch.com/story/senate-bill-delays-corporate-tax-cut-doesnt-repeal-estate-tax-2017-11-09) that would defer implementing a cut in corporate tax to 20% until 2019, diverging from the House Republicans' plan to introduce that rate next year. But jitters abated somewhat after the Republicans' bill was moved to a vote in the House (http://www.marketwatch.com/story/tax-reform-advances-a-step-as-house-committee-passes-bill-2017-11-09), possibly next week.
The prospect of lower taxes and other stimulus put forward by the Trump administration has bolstered equity markets over the past year.
Stock movers: Mining shares were mostly higher Friday, with Glencore PLC (GLEN.LN) and Rio Tinto PLC (RIO) (RIO) (RIO) up by 0.7% each. But (http://www.marketwatch.com/story/hikma-cuts-guidance-on-generics-unit-for-3rd-time-2017-11-09) Randgold Resources Ltd. (RRS.LN)(RRS.LN) was off 0.4%
Economic reports: A reading on U.K. industrial production in September is due at 9:30 a.m. London time, or 5:30 a.m. Eastern Time. A reading of 1.8% year-over-year is expected by analysts surveyed by FactSet.
(END) Dow Jones Newswires
November 10, 2017 04:51 ET (09:51 GMT)