FTSE 100 Edges Lower as Geopolitical Tensions Weigh on Markets
UK equities moved slightly lower on Friday, while the British pound weakened against the U.S. dollar. Investor sentiment remained under pressure due to ongoing tensions in the Middle East, alongside fresh economic data pointing to softer consumer activity.
The FTSE 100 slipped by 0.04%, while the GBP/USD pair declined 0.4% to 1.3275. Across Europe, Germany’s DAX dropped 1.3% and France’s CAC 40 fell 0.9%, reflecting broader regional caution.
UK Retail Sales Decline in February
Latest data showed that UK retail sales volumes decreased by 0.4% month-on-month in February 2026. While this marked a decline, it was less severe than expectations of a 0.7% drop.
The fall followed a revised 2.0% increase in January and was widespread, impacting five out of the seven major retail sectors tracked by the Office for National Statistics. The figures highlight weakening consumer confidence amid economic uncertainty.
Bank of England Adjusts Liquidity Support Measures
The Bank of England announced changes to its Discount Window Facility, lowering and fixing pricing to enhance its role as a readily accessible liquidity tool.
The move aims to support financial institutions in managing liquidity more effectively, while still encouraging disciplined day-to-day financial practices.
AstraZeneca Shares Jump on Positive Trial Results
Shares of AstraZeneca rose 3.5% after the company reported strong results from two Phase III clinical trials for its COPD treatment, tozorakimab.
The OBERON and TITANIA studies showed that the drug successfully reduced the annual rate of moderate-to-severe exacerbations compared to a placebo, both in former smokers and the broader patient population.
Harbour Energy Drops After Discounted Share Sale
Harbour Energy shares declined 2.8% after Germany’s BASF sold 80 million shares in the company at 273 pence each, representing a 9% discount to the previous closing price.
The company did not receive any proceeds from the transaction. Despite the drop, shares partially recovered during the session, trading at 284.4 pence after briefly touching the placement price.
