London stocks slip for the week as Brent tops $115 before UK budget

what happened

According to Reuters, the FTSE 100 closed Friday down 0.3% at 10,690.36 points, ending a two-week winning run. Brent crude climbed above $115 a barrel, lifting energy producers by 3.9%. Most other sectors declined: aerospace and defence stocks dropped 4.6%, while Rolls-Royce fell 7.6%, its steepest one-day decline since April 2025. France's Safran lost 10% after warning that slower aftermarket sales growth could persist into 2027.

The FTSE 250 edged up 0.1% but posted its sharpest weekly drop in six weeks. Precious and industrial metal miners were among the weakest performers, falling 10.9% and 8.7% over the week. Gold miners slipped 3.7% on Friday as bullion lost more than 1%. Banks and healthcare stocks also weakened.

Separately, price data for September came in above forecasts, strengthening expectations of a Bank of England rate hike in November, a move the market has already fully priced in. Retail sales volumes fell more than expected in September, and consumer confidence recorded its steepest monthly decline since the early pandemic period, according to separate figures.

why it matters

The mix of costlier oil, firmer inflation signals and the first budget from finance minister John Healey due next week is keeping investors cautious about UK equities. Oil producers benefit from higher crude, while rate-sensitive sectors and metal miners face pressure from potentially higher borrowing costs and weaker bullion.

market impact

UK equities: higher oil supports energy stocks but pressures aerospace, miners and rate-sensitive banks

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