The FTSE 100 experienced a slight dip on Friday due to robust U.S. jobs data, leading to a surge in the dollar and yields, prompting a sell-off in commodity stocks. The blue-chip index closed 0.1% lower, while the mid-cap FTSE 250 saw a 0.2% increase, both recording weekly declines.
Despite this, airline stocks, particularly Wizz Air, saw gains following a substantial jump in January traffic. Meanwhile, concerns about early rate cuts eased after strong U.S. jobs growth in January, with the Federal Reserve dismissing expectations for immediate rate adjustments.
Investors also adjusted expectations for Bank of England rate cuts as Chief Economist Huw Pill signaled a delay. Precious metal miners and industrial metal miners faced declines due to a stronger dollar, causing a drop in metal prices. Oil and gas shares also fell 1.4% amid lower crude prices.
BP shares contributed to the index’s challenges, dropping 1.5% after the shutdown of the Whiting, Indiana refinery. On a positive note, Wizz Air rallied 10.3%, leading FTSE 250 gains with a 14.2% rise in January passenger traffic. Sainsbury and Tesco gained 3.0% and 2.8%, respectively, following Morgan Stanley’s upgrade.
