UK stocks end week lower as fragile U.S.-Iran truce weighs; BoE flags risks

BY Reuters | ECONOMIC | 04/24/26 12:13 PM EDT

April 24 (Reuters) - UK's main stock indexes recorded weekly losses as investors assessed tentative signs of renewed U.S.-Iran peace talks, while a Bank of England warning that global stocks could face pressure also weighed on sentiment.

The blue-chip FTSE 100 index ended 0.8% lower to 10,379.08 points. The benchmark index recorded its first weekly drop in five, erasing all gains since the U.S.-Iran ceasefire announcement earlier this month. The midcap FTSE 250 slipped 0.8%.

* Iran's foreign minister was due in Islamabad on Friday to discuss possible steps to restart U.S.-Iran talks, Pakistani government sources said to Reuters.

* Investors remained on edge as crude oil prices stayed above $100 a barrel, with uncertainty lingering over Strait of Hormuz.

* The Bank of England's Deputy Governor Sarah Breeden told the BBC on Friday that stock markets around the world are expected to fall as current share prices do not fully reflect the many risks facing the global economy.

* Higher oil prices pressured airlines' shares, with Wizz Air (WZZAF) dipping 3.3%.

* Heavyweight banks Barclays (BCS) and HSBC (HSBC) fell 0.9% and 1.3% respectively.

* Pharma giant AstraZeneca (AZN) slipped 3.7%, and peer GSK dropped 2.7%, sending the pharma sector 3% lower.

* British retail sales rose by 0.7% in March, data showed on Friday. Major retailers Tesco (TSCDF) and Sainsbury warned this week that persistent Mideast tensions are likely to cloud their earnings outlook.

* Retailers stocks rose 0.1%, among the few gainers on the benchmark.

* Tech shares gained 1%, with Computacenter (CUUCF) surging 14.5% after the technology and services provider said it would beat annual profit forecasts.

* Mondi (MNODF) plunged 11.1%, landing at the bottom of the FTSE 100 after the packaging company flagged rising costs due to the Iran war. (Reporting by Utkarsh Tushar Hathi; Editing by Diti Pujara and Leroy Leo)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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