LONDON MARKETS: Retailers Help Drive FTSE 100 Toward Biggest Weekly Fall In 2 Months

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% (

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 (

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 (

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 ( 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 ( 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 (, 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 ( 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)