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BP, Shell down as oil prices fall
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Segro gains on annual rental growth
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NatWest down after warning higher earnings may not last
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FTSE 100 down 0.1%, FTSE 250 off 0.5%
(Updates to market close)
By Shashwat Chauhan and Shristi Achar A
Feb 17 (Reuters) - Britain's FTSE 100 ended lower on
Friday, with energy stocks leading losses as oil prices fell on
concerns about interest rates staying higher for longer, while
lender NatWest dropped on a dour earnings forecast.
The blue-chip FTSE 100 lost 0.1%, but posted a weekly gain of 1.5%. The index retreated from a record high hit in the previous session but stayed above 8,000 points. The domestically-focussed FTSE 250 midcap index fell 0.5%, although it eked out a marginal weekly gain. "Investors are reappraising their expectations for interest rates in the light of very strong data in the U.S. and some quite hawkish comments from central banks," said Paul O’Connor, head of multi asset at Janus Henderson Investors.
Heavyweight stocks such as BP and Shell dragged the energy sector down 1.7%, after oil prices fell on concerns that more U.S. interest rate hikes could weigh on demand, as well as signs of ample supply. Adding to central bank debate, Bank of England (BoE) Chief Economist Huw Pill said the BoE was likely to raise interest rates at a slower pace this year, but it needed to take care not to end its cycle of hikes too soon.
The internationally-focussed FTSE 100 recorded its highest
closing level on Thursday, breaching the 8,000-point level for
the second time this week, with upbeat corporate earnings and
rising commodity prices providing support.
Meanwhile, shares of NatWest tumbled 6.9% to the
bottom of the index, after the British bank warned that rising
interest rates may not deliver the long-lasting earnings bonanza
investors hope for.
The broader banking sector slipped 0.8%.
Segro was a bright spot, up 3.6% as the British
warehousing group reported annual rental growth and a jump in
pretax profit.
(Reporting by Shashwat Chauhan and Shristi Achar A in
Bengaluru; Editing by Sherry Jacob-Phillips and Mark Potter)
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